{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-439.12_01.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-439.12_01.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-439.12_01.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-439.12_01.html"}],"law_id":71239,"edition_id":1,"section_id":71239,"structure_id":13153,"section_number":"58.1-439.12:01","catch_line":"Credit for cigarettes manufactured and exported","history":"2004, Sp. Sess. I, c. 4; 2005, c. 951; 2006, Sp. Sess. I, c. 2.","full_text":"A\n\nFor purposes of this section:\n\t\t\t“Base year export volume” means the number of cigarettes manufactured by a corporation, which cigarettes were also exported by such manufacturer during its taxable year beginning in calendar year 2004.\n\t\t\t“Cigarette or cigarettes” means the same as that term is defined in § 58.1-1031.\n\t\t\t“Current year export volume” means the number of cigarettes manufactured by a corporation, which cigarettes were also exported by such manufacturer in the taxable year for which credit under this section is claimed. The term shall only apply for taxable years beginning on and after January 1, 2006.\n\t\t\t“Exported” or “exports” means the shipment of cigarettes to a foreign country.\n\t\t\t“Manufactured” or “manufactures” means manufactured in Virginia.B\n\nFor taxable years beginning on and after January 1, 2006, but before January 1, 2016, any corporation that manufactures cigarettes in Virginia, which cigarettes are exported by such manufacturer, shall be allowed a credit against the tax imposed by \u00a7 58.1-400 for such exported cigarettes as follows:1\n\nIf the current year export volume of the corporation is less than 50 percent of the base year export volume for the corporation, no credit shall be allowed for the taxable year.2\n\nIf the current year export volume of the corporation is at least 50 percent but less than 60 percent of the base year export volume for the corporation, the credit allowed shall equal $0.20 per 1,000 cigarettes of the current year export volume.3\n\nIf the current year export volume of the corporation is at least 60 percent but less than 80 percent of the base year export volume for the corporation, the credit allowed shall equal $0.25 per 1,000 cigarettes of the current year export volume.4\n\nIf the current year export volume of the corporation is at least 80 percent but less than 100 percent of the base year export volume for the corporation, the credit allowed shall equal $0.30 per 1,000 cigarettes of the current year export volume.5\n\nIf the current year export volume of the corporation is at least 100 percent but less than 120 percent of the base year export volume for the corporation, the credit allowed shall equal $0.35 per 1,000 cigarettes of the current year export volume.6\n\nIf the current year export volume of the corporation is at least 120 percent of the base year export volume for the corporation, the credit allowed shall equal $0.40 per 1,000 cigarettes of the current year export volume.C\n\nIn no event shall the credit allowed under this section for any taxable year to any corporation exceed the lesser of $6 million or 50 percent of the corporation’s income tax liability to the Commonwealth for such taxable year.D\n\nThe total amount of tax credits granted under this section for each fiscal year of the Commonwealth shall not exceed $6 million. A corporation meeting the requirements of this section shall be eligible to receive a tax credit to the extent the corporation reserves such tax credit through the Department as provided herein.\n\t\t\tThe Department shall establish policies and procedures for the reservation of tax credits by eligible corporations. Such policies and procedures shall provide (i) requirements for applying for reservations of tax credits; (ii) a system for allocating the available amount of tax credits among eligible corporations; (iii) a method for the issuance of reservations to eligible corporations that did not initially receive a reservation in any year, if the Department determines that tax credit reservations were issued to other corporations that did not use, or were determined to be wholly or partially ineligible for, a reserved tax credit; and (iv) a procedure for the cancellation and reallocation of tax credit reservations allocated to eligible corporations that, after reserving tax credits, have been determined to be ineligible for all or a portion of the tax credits reserved. In no case shall a corporation be allowed to carry over any tax credit to be applied against any income tax for taxable years subsequent to the taxable year of export.\n\t\t\tActions of the Department relating to the approval or denial of applications for reservations for tax credits pursuant to this section shall be exempt from the provisions of the Administrative Process Act pursuant (§ 2.2-4000 et seq.).E\n\nA corporation claiming the credit under this section for a taxable year shall submit with its application for reservation of tax credits and its state income tax return a written statement certifying its base year export volume and current year export volume. It shall also submit with such application and return a listing of its export volumes as reported on its monthly reports to the Bureau of Alcohol, Tobacco and Firearms of the United States Department of the Treasury for each month of the taxable year and a listing for each month of the taxable year of its export volumes.","order_by":null,"text":{"0":{"id":256770,"text":"For purposes of this section:\n\t\t\t“Base year export volume” means the number of cigarettes manufactured by a corporation, which cigarettes were also exported by such manufacturer during its taxable year beginning in calendar year 2004.\n\t\t\t“Cigarette or cigarettes” means the same as that term is defined in § 58.1-1031.\n\t\t\t“Current year export volume” means the number of cigarettes manufactured by a corporation, which cigarettes were also exported by such manufacturer in the taxable year for which credit under this section is claimed. The term shall only apply for taxable years beginning on and after January 1, 2006.\n\t\t\t“Exported” or “exports” means the shipment of cigarettes to a foreign country.\n\t\t\t“Manufactured” or “manufactures” means manufactured in Virginia.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":256771,"text":"For taxable years beginning on and after January 1, 2006, but before January 1, 2016, any corporation that manufactures cigarettes in Virginia, which cigarettes are exported by such manufacturer, shall be allowed a credit against the tax imposed by \u00a7 58.1-400 for such exported cigarettes as follows:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":256772,"text":"If the current year export volume of the corporation is less than 50 percent of the base year export volume for the corporation, no credit shall be allowed for the taxable year.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":256773,"text":"If the current year export volume of the corporation is at least 50 percent but less than 60 percent of the base year export volume for the corporation, the credit allowed shall equal $0.20 per 1,000 cigarettes of the current year export volume.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":256774,"text":"If the current year export volume of the corporation is at least 60 percent but less than 80 percent of the base year export volume for the corporation, the credit allowed shall equal $0.25 per 1,000 cigarettes of the current year export volume.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":256775,"text":"If the current year export volume of the corporation is at least 80 percent but less than 100 percent of the base year export volume for the corporation, the credit allowed shall equal $0.30 per 1,000 cigarettes of the current year export volume.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":256776,"text":"If the current year export volume of the corporation is at least 100 percent but less than 120 percent of the base year export volume for the corporation, the credit allowed shall equal $0.35 per 1,000 cigarettes of the current year export volume.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"7":{"id":256777,"text":"If the current year export volume of the corporation is at least 120 percent of the base year export volume for the corporation, the credit allowed shall equal $0.40 per 1,000 cigarettes of the current year export volume.","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"C"},"8":{"id":256778,"text":"In no event shall the credit allowed under this section for any taxable year to any corporation exceed the lesser of $6 million or 50 percent of the corporation’s income tax liability to the Commonwealth for such taxable year.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B6","next_prefix":"D"},"9":{"id":256779,"text":"The total amount of tax credits granted under this section for each fiscal year of the Commonwealth shall not exceed $6 million. A corporation meeting the requirements of this section shall be eligible to receive a tax credit to the extent the corporation reserves such tax credit through the Department as provided herein.\n\t\t\tThe Department shall establish policies and procedures for the reservation of tax credits by eligible corporations. Such policies and procedures shall provide (i) requirements for applying for reservations of tax credits; (ii) a system for allocating the available amount of tax credits among eligible corporations; (iii) a method for the issuance of reservations to eligible corporations that did not initially receive a reservation in any year, if the Department determines that tax credit reservations were issued to other corporations that did not use, or were determined to be wholly or partially ineligible for, a reserved tax credit; and (iv) a procedure for the cancellation and reallocation of tax credit reservations allocated to eligible corporations that, after reserving tax credits, have been determined to be ineligible for all or a portion of the tax credits reserved. In no case shall a corporation be allowed to carry over any tax credit to be applied against any income tax for taxable years subsequent to the taxable year of export.\n\t\t\tActions of the Department relating to the approval or denial of applications for reservations for tax credits pursuant to this section shall be exempt from the provisions of the Administrative Process Act pursuant (§ 2.2-4000 et seq.).","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"10":{"id":256780,"text":"A corporation claiming the credit under this section for a taxable year shall submit with its application for reservation of tax credits and its state income tax return a written statement certifying its base year export volume and current year export volume. It shall also submit with such application and return a listing of its export volumes as reported on its monthly reports to the Bureau of Alcohol, Tobacco and Firearms of the United States Department of the Treasury for each month of the taxable year and a listing for each month of the taxable year of its export volumes.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":13153,"edition_id":1,"name":"Tax Credits for Corporations","identifier":"13","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253497,"object_type":"structure","relational_id":13153,"identifier":"13","token":"58.1\/I\/3\/13","url":"\/58.1\/I\/3\/13\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":59349,"structure_id":13153,"section_number":"58.1-430","catch_line":"Repealed","url":"\/58.1-430\/","token":"58.1\/I\/3\/13\/58.1-430","metadata":false},{"id":79747,"structure_id":13153,"section_number":"58.1-431","catch_line":"Repealed","url":"\/58.1-431\/","token":"58.1\/I\/3\/13\/58.1-431","metadata":false},{"id":87213,"structure_id":13153,"section_number":"58.1-432","catch_line":"Tax credit for purchase of conservation tillage equipment","url":"\/58.1-432\/","token":"58.1\/I\/3\/13\/58.1-432","metadata":false},{"id":78377,"structure_id":13153,"section_number":"58.1-433","catch_line":"Expired","url":"\/58.1-433\/","token":"58.1\/I\/3\/13\/58.1-433","metadata":false},{"id":84600,"structure_id":13153,"section_number":"58.1-433.1","catch_line":"Virginia Coal Employment and Production Incentive Tax Credit","url":"\/58.1-433.1\/","token":"58.1\/I\/3\/13\/58.1-433.1","metadata":false},{"id":72145,"structure_id":13153,"section_number":"58.1-434","catch_line":"Repealed","url":"\/58.1-434\/","token":"58.1\/I\/3\/13\/58.1-434","metadata":false},{"id":62315,"structure_id":13153,"section_number":"58.1-436","catch_line":"Tax credit for purchase of conservation tillage and precision agricultural application equipment","url":"\/58.1-436\/","token":"58.1\/I\/3\/13\/58.1-436","metadata":false},{"id":62397,"structure_id":13153,"section_number":"58.1-437","catch_line":"Repealed","url":"\/58.1-437\/","token":"58.1\/I\/3\/13\/58.1-437","metadata":false},{"id":83316,"structure_id":13153,"section_number":"58.1-438","catch_line":"Not effective","url":"\/58.1-438\/","token":"58.1\/I\/3\/13\/58.1-438","metadata":false},{"id":56216,"structure_id":13153,"section_number":"58.1-438.1","catch_line":"Tax credit for vehicle emissions testing equipment, clean-fuel vehicles and certain refueling property","url":"\/58.1-438.1\/","token":"58.1\/I\/3\/13\/58.1-438.1","metadata":false},{"id":62311,"structure_id":13153,"section_number":"58.1-439","catch_line":"Major business facility job tax credit","url":"\/58.1-439\/","token":"58.1\/I\/3\/13\/58.1-439","metadata":false},{"id":63680,"structure_id":13153,"section_number":"58.1-439.1","catch_line":"Repealed","url":"\/58.1-439.1\/","token":"58.1\/I\/3\/13\/58.1-439.1","metadata":false},{"id":76474,"structure_id":13153,"section_number":"58.1-439.10","catch_line":"Tax credit for purchase of waste motor oil burning equipment","url":"\/58.1-439.10\/","token":"58.1\/I\/3\/13\/58.1-439.10","metadata":false},{"id":85121,"structure_id":13153,"section_number":"58.1-439.11","catch_line":"Repealed","url":"\/58.1-439.11\/","token":"58.1\/I\/3\/13\/58.1-439.11","metadata":false},{"id":59921,"structure_id":13153,"section_number":"58.1-439.12","catch_line":"Riparian forest buffer protection for waterways tax 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credit","url":"\/58.1-439.12\/","token":"58.1\/I\/3\/13\/58.1-439.12","metadata":false},"next_section":{"id":80405,"structure_id":13153,"section_number":"58.1-439.12:02","catch_line":" Biodiesel and green diesel fuels producers tax credit","url":"\/58.1-439.12_02\/","token":"58.1\/I\/3\/13\/58.1-439.12_02","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-439.12:01\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2005, chapter 951<\/a>.<\/p>","references":false,"refers_to":[{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":79972,"section_number":"58.1-1031","catch_line":"Definitions","order_by":null,"url":"\/58.1-1031\/"},{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"}],"permalink":{"id":253559,"object_type":"law","relational_id":71239,"identifier":"58.1-439.12:01","token":"58.1\/I\/3\/13\/58.1-439.12_01","url":"\/58.1-439.12_01\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-439.12_01\/","token":"58.1\/I\/3\/13\/58.1-439.12_01","dublin_core":{"Title":"Credit for cigarettes manufactured and exported","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-439.12:01","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> For purposes of this section:\n\t\t\t“Base year export volume<\/span>” means the number of cigarettes manufactured<\/span> by a corporation<\/span>, which cigarettes were also exported<\/span> by such manufacturer during its taxable year beginning in calendar year 2004.\n\t\t\t“Cigarette or cigarettes<\/span>” means the same as that term is defined in § 58.1-1031<\/a>.\n\t\t\t“Current year export volume<\/span>” means the number of cigarettes manufactured<\/span> by a corporation<\/span>, which cigarettes were also exported<\/span> by such manufacturer in the taxable year for which credit under this section is claimed. The term shall only apply for taxable years beginning on and after January 1, 2006.\n\t\t\t“Exported<\/span>” or “exports<\/span>” means the shipment of cigarettes to a foreign country.\n\t\t\t“Manufactured<\/span>” or “manufactures<\/span>” means manufactured<\/span> in Virginia. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> For taxable years beginning on and after January 1, 2006, but before January 1, 2016, any corporation<\/span> that manufactures<\/span> cigarettes in Virginia, which cigarettes are exported<\/span> by such manufacturer, shall be allowed a credit against the tax imposed by \u00a7 58.1-400<\/a> for such exported<\/span> cigarettes as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> If the current year export volume<\/span> of the corporation<\/span> is less than 50 percent of the base year export volume<\/span> for the corporation<\/span>, no credit shall be allowed for the taxable year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If the current year export volume<\/span> of the corporation<\/span> is at least 50 percent but less than 60 percent of the base year export volume<\/span> for the corporation<\/span>, the credit allowed shall equal $0.20 per 1,000 cigarettes of the current year export volume<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If the current year export volume<\/span> of the corporation<\/span> is at least 60 percent but less than 80 percent of the base year export volume<\/span> for the corporation<\/span>, the credit allowed shall equal $0.25 per 1,000 cigarettes of the current year export volume<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> If the current year export volume<\/span> of the corporation<\/span> is at least 80 percent but less than 100 percent of the base year export volume<\/span> for the corporation<\/span>, the credit allowed shall equal $0.30 per 1,000 cigarettes of the current year export volume<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> If the current year export volume<\/span> of the corporation<\/span> is at least 100 percent but less than 120 percent of the base year export volume<\/span> for the corporation<\/span>, the credit allowed shall equal $0.35 per 1,000 cigarettes of the current year export volume<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> If the current year export volume<\/span> of the corporation<\/span> is at least 120 percent of the base year export volume<\/span> for the corporation<\/span>, the credit allowed shall equal $0.40 per 1,000 cigarettes of the current year export volume<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In no event shall the credit allowed under this section for any taxable year to any corporation<\/span> exceed the lesser of $6 million or 50 percent of the corporation<\/span>’s income tax liability to the Commonwealth for such taxable year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The total amount of tax credits granted under this section for each fiscal year of the Commonwealth shall not exceed $6 million. A corporation<\/span> meeting the requirements of this section shall be eligible to receive a tax credit to the extent the corporation<\/span> reserves such tax credit through the Department<\/span> as provided herein.\n\t\t\tThe Department<\/span> shall establish policies and procedures for the reservation of tax credits by eligible corporations<\/span>. Such policies and procedures shall provide (i) requirements for applying for reservations of tax credits; (ii) a system for allocating the available amount of tax credits among eligible corporations<\/span>; (iii) a method for the issuance of reservations to eligible corporations<\/span> that did not initially receive a reservation in any year, if the Department<\/span> determines that tax credit reservations were issued to other corporations<\/span> that did not use, or were determined to be wholly or partially ineligible for, a reserved tax credit; and (iv) a procedure for the cancellation and reallocation of tax credit reservations allocated to eligible corporations<\/span> that, after reserving tax credits, have been determined to be ineligible for all or a portion of the tax credits reserved. In no case shall a corporation<\/span> be allowed to carry over any tax credit to be applied against any income tax for taxable years subsequent to the taxable year of export.\n\t\t\tActions of the Department<\/span> relating to the approval or denial of applications for reservations for tax credits pursuant to this section shall be exempt from the provisions of the Administrative Process Act pursuant (§ 2.2-4000<\/a> et seq.). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> A corporation<\/span> claiming the credit under this section for a taxable year shall submit with its application for reservation of tax credits and its state income tax return a written statement certifying its base year export volume<\/span> and current year export volume<\/span>. It shall also submit with such application and return a listing of its export volumes as reported on its monthly reports to the Bureau of Alcohol, Tobacco and Firearms of the United States Department<\/span> of the Treasury for each month of the taxable year and a listing for each month of the taxable year of its export volumes. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCREDIT FOR CIGARETTES MANUFACTURED AND EXPORTED (\u00a7 58.1-439.12:01)\n\nA. For purposes of this section:\n\t\t\t“Base year export volume” means the number of cigarettes\nmanufactured by a corporation, which cigarettes were also exported by such\nmanufacturer during its taxable year beginning in calendar year 2004.\n\t\t\t“Cigarette or cigarettes” means the same as that term is defined\nin § 58.1-1031.\n\t\t\t“Current year export volume” means the number of cigarettes\nmanufactured by a corporation, which cigarettes were also exported by such\nmanufacturer in the taxable year for which credit under this section is claimed.\nThe term shall only apply for taxable years beginning on and after January 1,\n2006.\n\t\t\t“Exported” or “exports” means the shipment of\ncigarettes to a foreign country.\n\t\t\t“Manufactured” or “manufactures” means manufactured\nin Virginia.\n\nB. For taxable years beginning on and after January 1, 2006, but before January\n1, 2016, any corporation that manufactures cigarettes in Virginia, which\ncigarettes are exported by such manufacturer, shall be allowed a credit against\nthe tax imposed by \u00a7 58.1-400 for such exported cigarettes as follows:\n\n 1. If the current year export volume of the corporation is less than 50\n percent of the base year export volume for the corporation, no credit shall be\n allowed for the taxable year.\n\n 2. If the current year export volume of the corporation is at least 50 percent\n but less than 60 percent of the base year export volume for the corporation,\n the credit allowed shall equal $0.20 per 1,000 cigarettes of the current year\n export volume.\n\n 3. If the current year export volume of the corporation is at least 60 percent\n but less than 80 percent of the base year export volume for the corporation,\n the credit allowed shall equal $0.25 per 1,000 cigarettes of the current year\n export volume.\n\n 4. If the current year export volume of the corporation is at least 80 percent\n but less than 100 percent of the base year export volume for the corporation,\n the credit allowed shall equal $0.30 per 1,000 cigarettes of the current year\n export volume.\n\n 5. If the current year export volume of the corporation is at least 100\n percent but less than 120 percent of the base year export volume for the\n corporation, the credit allowed shall equal $0.35 per 1,000 cigarettes of the\n current year export volume.\n\n 6. If the current year export volume of the corporation is at least 120\n percent of the base year export volume for the corporation, the credit allowed\n shall equal $0.40 per 1,000 cigarettes of the current year export volume.\n\nC. In no event shall the credit allowed under this section for any taxable year\nto any corporation exceed the lesser of $6 million or 50 percent of the\ncorporation’s income tax liability to the Commonwealth for such taxable\nyear.\n\nD. The total amount of tax credits granted under this section for each fiscal\nyear of the Commonwealth shall not exceed $6 million. A corporation meeting the\nrequirements of this section shall be eligible to receive a tax credit to the\nextent the corporation reserves such tax credit through the Department as\nprovided herein.\n\t\t\tThe Department shall establish policies and procedures for the reservation of\ntax credits by eligible corporations. Such policies and procedures shall provide\n(i) requirements for applying for reservations of tax credits; (ii) a system for\nallocating the available amount of tax credits among eligible corporations;\n(iii) a method for the issuance of reservations to eligible corporations that\ndid not initially receive a reservation in any year, if the Department\ndetermines that tax credit reservations were issued to other corporations that\ndid not use, or were determined to be wholly or partially ineligible for, a\nreserved tax credit; and (iv) a procedure for the cancellation and reallocation\nof tax credit reservations allocated to eligible corporations that, after\nreserving tax credits, have been determined to be ineligible for all or a\nportion of the tax credits reserved. In no case shall a corporation be allowed\nto carry over any tax credit to be applied against any income tax for taxable\nyears subsequent to the taxable year of export.\n\t\t\tActions of the Department relating to the approval or denial of applications\nfor reservations for tax credits pursuant to this section shall be exempt from\nthe provisions of the Administrative Process Act pursuant (§ 2.2-4000 et\nseq.).\n\nE. A corporation claiming the credit under this section for a taxable year shall\nsubmit with its application for reservation of tax credits and its state income\ntax return a written statement certifying its base year export volume and\ncurrent year export volume. It shall also submit with such application and\nreturn a listing of its export volumes as reported on its monthly reports to the\nBureau of Alcohol, Tobacco and Firearms of the United States Department of the\nTreasury for each month of the taxable year and a listing for each month of the\ntaxable year of its export volumes.\n\nHISTORY: 2004, Sp. Sess. I, c. 4; 2005, c. 951; 2006, Sp. Sess. I, c. 2.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}