{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-439.12_10.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-439.12_10.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-439.12_10.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-439.12_10.html"}],"law_id":78639,"edition_id":1,"section_id":78639,"structure_id":13153,"section_number":"58.1-439.12:10","catch_line":"Virginia port volume increase tax credit","history":"2011, cc. 831, 872; 2012, cc. 846, 849; 2013, c. 744; 2014, c. 423; 2016, c. 69; 2019, c. 759; 2021, Sp. Sess. I, c. 373.","full_text":"A\n\nAs used in this section, unless the context indicates otherwise:\n\t\t\t“Agricultural entity” means a person engaged in growing or producing wheat, grains, fruits, nuts, crops; tobacco, nursery, or floral products; forestry products excluding raw wood fiber or wood fiber processed or manufactured for use as fuel for the generation of electricity; or seafood, meat, dairy, or poultry products.\n\t\t\t“Base year port cargo volume” means the total amount of (i) net tons of noncontainerized cargo, (ii) TEUs of cargo, or (iii) units of roll-on\/roll-off cargo actually transported by way of a waterborne ship or vehicle through a port facility during the period from (i) January 1, 2010, through December 31, 2010, for manufacturing-related entities or (ii) January 1, 2012, through December 31, 2012, for agricultural entities and mineral and gas entities. Base year port cargo volume must be at least 75 net tons of noncontainerized cargo, 10 loaded TEUs, or 10 units of roll-on\/roll-off cargo for a taxpayer to be eligible for the credits provided in this section. For a taxpayer that does not ship that amount in the year ending December 31, 2010, or December 31, 2012, as applicable, including a taxpayer who locates in Virginia after such periods, its base cargo volume will be measured by the initial January 1 through December 31 calendar year in which it meets the requirements of 75 net tons of noncontainerized cargo, 10 loaded TEUs, or 10 units of roll-on\/roll-off cargo. Base year port cargo volume must be recalculated each calendar year after the initial base year.\n\t\t\t“Major facility” means a new facility to be located in Virginia that is projected to import or export cargo through a port in excess of 25,000 TEUs in its first calendar year.\n\t\t\t“Manufacturing-related entity” means a person engaged in the manufacturing of goods or the distribution of manufactured goods.\n\t\t\t“Mineral and gas entity” means a person engaged in severing minerals or gases from the earth.\n\t\t\t“Port cargo volume” means the total amount of net tons of noncontainerized cargo, net units of roll-on\/roll-off cargo, or containers measured in TEUs of cargo transported by way of a waterborne ship or vehicle through a port facility.\n\t\t\t“Port facility” means any publicly or privately owned facility located within the Commonwealth through which cargo is transported by way of a waterborne ship or vehicle to or from destinations outside the Commonwealth and which handles cargo owned by third parties in addition to cargo owned by the port facility’s owner.\n\t\t\t“TEU” or “20-foot equivalent unit” means a volumetric measure based on the size of a container that is 20 feet long by eight feet wide by eight feet, six inches high.B\n\n1. For taxable years beginning on and after January 1, 2011, but before January 1, 2025, a taxpayer that is an agricultural entity, manufacturing-related entity, or mineral and gas entity that uses port facilities in the Commonwealth and increases its port cargo volume at these facilities by a minimum of five percent in a single calendar year over its base year port cargo volume is eligible to claim a credit against the tax levied pursuant to \u00a7\u00a7 58.1-320 and 58.1-400 in an amount determined by the Virginia Port Authority. The Virginia Port Authority may waive the requirement that port cargo volume be increased by a minimum of five percent over base year port cargo volume for any taxpayer that qualifies as a major facility.2\n\nQualifying taxpayers that increase their port cargo volume by a minimum of five percent in a qualifying calendar year shall receive a $50 credit against the tax levied pursuant to §§ 58.1-320 and 58.1-400 for each TEU, unit of roll-on\/roll-off cargo, or 16 net tons of noncontainerized cargo, as applicable, above the base year port cargo volume. A qualifying taxpayer that is a major facility as defined in this section shall receive a $50 credit against the tax levied pursuant to §§ 58.1-320 and 58.1-400 for each TEU, unit of roll-on\/roll-off cargo, or 16 net tons of noncontainerized cargo, as applicable, transported through a port facility during the major facility’s first calendar year. A qualifying taxpayer may not receive more than $250,000 for each calendar year except as provided for in subdivision C 2. The maximum amount of credits allowed for all qualifying taxpayers pursuant to this section shall not exceed $3.2 million for each calendar year. The Virginia Port Authority shall allocate the credits pursuant to the provisions in subdivisions C 1 and C 2.3\n\nIf the credit exceeds the taxpayer’s tax liability for the taxable year, the excess amount may be carried forward and claimed against income taxes in the next five succeeding taxable years.4\n\nThe credit may be claimed by the taxpayer as provided in subdivision 1 only if the taxpayer owns the cargo at the time the port facilities are used.C\n\n1. For every year in which a taxpayer claims the credit, the taxpayer shall submit an application to the Virginia Port Authority by March 1 of the calendar year after the calendar year in which the increase in port cargo volume occurs. The taxpayer shall attach a schedule to the taxpayer’s application to the Virginia Port Authority with the following information and any other information requested by the Virginia Port Authority or the Department:\n\t\t\ta. A description of how the base year port cargo volume and the increase in port cargo volume were determined;\n\t\t\tb. The amount of the base year port cargo volume;\n\t\t\tc. The amount of the increase in port cargo volume for the taxable year stated both as a percentage increase and as a total increase in net tons of noncontainerized cargo, TEUs of cargo, and units of roll-on\/roll-off cargo, as applicable, including information that demonstrates an increase in port cargo volume in excess of the minimum amount required to claim the tax credits pursuant to this section;\n\t\t\td. Any tax credit utilized by the taxpayer in prior years; and\n\t\t\te. The amount of tax credit carried over from prior years.2\n\nIf on March 15 of each year the $3.2 million amount of credit is not fully allocated among qualifying taxpayers, then those taxpayers who have been allocated a credit for the prior year shall be allowed a pro rata share of the remaining allocated credit up to $3.2 million. If on March 15 of each year, the cumulative amount of tax credits requested by qualifying taxpayers for the prior year exceeds $3.2 million, then the $3.2 million in credits shall be prorated among the qualifying taxpayers who requested the credit.3\n\nThe taxpayer shall claim the credit on its income tax return in a manner prescribed by the Department. The Department may require a copy of the certification form issued by the Virginia Port Authority be attached to the return or otherwise provided. Qualifying taxpayers may also claim the credit pursuant to § 58.1-439.12:09 for the same containers, noncontainerized cargo, or roll-on\/roll-off units of cargo for which a credit is claimed under this section provided such taxpayer meets the applicable criteria set forth therein.D\n\n1. Any taxpayer holding a credit under this section may transfer unused but otherwise allowable credit for use by another taxpayer on Virginia income tax returns. A taxpayer who transfers any amount of credit under this section shall file a notification of such transfer to the Department in accordance with procedures and forms prescribed by the Tax Commissioner. The transferred credits may be retroactively applied from the date such credits were originally issued, and the transferee may file an amended return under this chapter to claim such transferred credit for a prior tax year. However, nothing in this section shall be construed to extend the statute of limitations for filing an amended return under \u00a7 58.1-1823 or any other provision of law.2\n\nNo transfer of tax credits pursuant to the provisions of this subsection shall be allowed unless such transfer occurs within one calendar year of the credit holder earning such credit.3\n\nOnly tax credits issued in taxable years beginning on and after January 1, 2018, but before January 1, 2025, shall be transferable pursuant to the provisions of this subsection.E\n\nCredits granted to a partnership, limited liability company, or electing small business corporation (S corporation) shall be allocated to the individual partners, members, or shareholders, respectively, in proportion to their ownership interests in such business entities.","order_by":null,"text":{"0":{"id":281781,"text":"As used in this section, unless the context indicates otherwise:\n\t\t\t“Agricultural entity” means a person engaged in growing or producing wheat, grains, fruits, nuts, crops; tobacco, nursery, or floral products; forestry products excluding raw wood fiber or wood fiber processed or manufactured for use as fuel for the generation of electricity; or seafood, meat, dairy, or poultry products.\n\t\t\t“Base year port cargo volume” means the total amount of (i) net tons of noncontainerized cargo, (ii) TEUs of cargo, or (iii) units of roll-on\/roll-off cargo actually transported by way of a waterborne ship or vehicle through a port facility during the period from (i) January 1, 2010, through December 31, 2010, for manufacturing-related entities or (ii) January 1, 2012, through December 31, 2012, for agricultural entities and mineral and gas entities. Base year port cargo volume must be at least 75 net tons of noncontainerized cargo, 10 loaded TEUs, or 10 units of roll-on\/roll-off cargo for a taxpayer to be eligible for the credits provided in this section. For a taxpayer that does not ship that amount in the year ending December 31, 2010, or December 31, 2012, as applicable, including a taxpayer who locates in Virginia after such periods, its base cargo volume will be measured by the initial January 1 through December 31 calendar year in which it meets the requirements of 75 net tons of noncontainerized cargo, 10 loaded TEUs, or 10 units of roll-on\/roll-off cargo. Base year port cargo volume must be recalculated each calendar year after the initial base year.\n\t\t\t“Major facility” means a new facility to be located in Virginia that is projected to import or export cargo through a port in excess of 25,000 TEUs in its first calendar year.\n\t\t\t“Manufacturing-related entity” means a person engaged in the manufacturing of goods or the distribution of manufactured goods.\n\t\t\t“Mineral and gas entity” means a person engaged in severing minerals or gases from the earth.\n\t\t\t“Port cargo volume” means the total amount of net tons of noncontainerized cargo, net units of roll-on\/roll-off cargo, or containers measured in TEUs of cargo transported by way of a waterborne ship or vehicle through a port facility.\n\t\t\t“Port facility” means any publicly or privately owned facility located within the Commonwealth through which cargo is transported by way of a waterborne ship or vehicle to or from destinations outside the Commonwealth and which handles cargo owned by third parties in addition to cargo owned by the port facility’s owner.\n\t\t\t“TEU” or “20-foot equivalent unit” means a volumetric measure based on the size of a container that is 20 feet long by eight feet wide by eight feet, six inches high.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":281782,"text":"1. For taxable years beginning on and after January 1, 2011, but before January 1, 2025, a taxpayer that is an agricultural entity, manufacturing-related entity, or mineral and gas entity that uses port facilities in the Commonwealth and increases its port cargo volume at these facilities by a minimum of five percent in a single calendar year over its base year port cargo volume is eligible to claim a credit against the tax levied pursuant to \u00a7\u00a7 58.1-320 and 58.1-400 in an amount determined by the Virginia Port Authority. The Virginia Port Authority may waive the requirement that port cargo volume be increased by a minimum of five percent over base year port cargo volume for any taxpayer that qualifies as a major facility.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B2"},"2":{"id":281783,"text":"Qualifying taxpayers that increase their port cargo volume by a minimum of five percent in a qualifying calendar year shall receive a $50 credit against the tax levied pursuant to §§ 58.1-320 and 58.1-400 for each TEU, unit of roll-on\/roll-off cargo, or 16 net tons of noncontainerized cargo, as applicable, above the base year port cargo volume. A qualifying taxpayer that is a major facility as defined in this section shall receive a $50 credit against the tax levied pursuant to §§ 58.1-320 and 58.1-400 for each TEU, unit of roll-on\/roll-off cargo, or 16 net tons of noncontainerized cargo, as applicable, transported through a port facility during the major facility’s first calendar year. A qualifying taxpayer may not receive more than $250,000 for each calendar year except as provided for in subdivision C 2. The maximum amount of credits allowed for all qualifying taxpayers pursuant to this section shall not exceed $3.2 million for each calendar year. The Virginia Port Authority shall allocate the credits pursuant to the provisions in subdivisions C 1 and C 2.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"B3"},"3":{"id":281784,"text":"If the credit exceeds the taxpayer’s tax liability for the taxable year, the excess amount may be carried forward and claimed against income taxes in the next five succeeding taxable years.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"4":{"id":281785,"text":"The credit may be claimed by the taxpayer as provided in subdivision 1 only if the taxpayer owns the cargo at the time the port facilities are used.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"5":{"id":281786,"text":"1. For every year in which a taxpayer claims the credit, the taxpayer shall submit an application to the Virginia Port Authority by March 1 of the calendar year after the calendar year in which the increase in port cargo volume occurs. The taxpayer shall attach a schedule to the taxpayer’s application to the Virginia Port Authority with the following information and any other information requested by the Virginia Port Authority or the Department:\n\t\t\ta. A description of how the base year port cargo volume and the increase in port cargo volume were determined;\n\t\t\tb. The amount of the base year port cargo volume;\n\t\t\tc. The amount of the increase in port cargo volume for the taxable year stated both as a percentage increase and as a total increase in net tons of noncontainerized cargo, TEUs of cargo, and units of roll-on\/roll-off cargo, as applicable, including information that demonstrates an increase in port cargo volume in excess of the minimum amount required to claim the tax credits pursuant to this section;\n\t\t\td. Any tax credit utilized by the taxpayer in prior years; and\n\t\t\te. The amount of tax credit carried over from prior years.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4","next_prefix":"C2"},"6":{"id":281787,"text":"If on March 15 of each year the $3.2 million amount of credit is not fully allocated among qualifying taxpayers, then those taxpayers who have been allocated a credit for the prior year shall be allowed a pro rata share of the remaining allocated credit up to $3.2 million. If on March 15 of each year, the cumulative amount of tax credits requested by qualifying taxpayers for the prior year exceeds $3.2 million, then the $3.2 million in credits shall be prorated among the qualifying taxpayers who requested the credit.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C","next_prefix":"C3"},"7":{"id":281788,"text":"The taxpayer shall claim the credit on its income tax return in a manner prescribed by the Department. The Department may require a copy of the certification form issued by the Virginia Port Authority be attached to the return or otherwise provided. Qualifying taxpayers may also claim the credit pursuant to § 58.1-439.12:09 for the same containers, noncontainerized cargo, or roll-on\/roll-off units of cargo for which a credit is claimed under this section provided such taxpayer meets the applicable criteria set forth therein.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"D"},"8":{"id":281789,"text":"1. Any taxpayer holding a credit under this section may transfer unused but otherwise allowable credit for use by another taxpayer on Virginia income tax returns. A taxpayer who transfers any amount of credit under this section shall file a notification of such transfer to the Department in accordance with procedures and forms prescribed by the Tax Commissioner. The transferred credits may be retroactively applied from the date such credits were originally issued, and the transferee may file an amended return under this chapter to claim such transferred credit for a prior tax year. However, nothing in this section shall be construed to extend the statute of limitations for filing an amended return under \u00a7 58.1-1823 or any other provision of law.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C3","next_prefix":"D2"},"9":{"id":281790,"text":"No transfer of tax credits pursuant to the provisions of this subsection shall be allowed unless such transfer occurs within one calendar year of the credit holder earning such credit.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D","next_prefix":"D3"},"10":{"id":281791,"text":"Only tax credits issued in taxable years beginning on and after January 1, 2018, but before January 1, 2025, shall be transferable pursuant to the provisions of this subsection.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"E"},"11":{"id":281792,"text":"Credits granted to a partnership, limited liability company, or electing small business corporation (S corporation) shall be allocated to the individual partners, members, or shareholders, respectively, in proportion to their ownership interests in such business entities.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D3"}},"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 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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 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credit","url":"\/58.1-439.12_09\/","token":"58.1\/I\/3\/13\/58.1-439.12_09","metadata":false},"next_section":{"id":85547,"structure_id":13153,"section_number":"58.1-439.12:11","catch_line":"Major research and development expenses tax credit","url":"\/58.1-439.12_11\/","token":"58.1\/I\/3\/13\/58.1-439.12_11","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-439.12:10\/","history_text":"

This law was first created in 2011. The record of its establishment is cataloged in chapters 831<\/a> and 872<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 5 times. 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. Those modifications are as follows: in 2012, chapters 846<\/a> and 849<\/a>; in 2013, chapter 744<\/a>; in 2014, chapter 423<\/a>; in 2016, chapter 69<\/a>; in 2019, chapter 759<\/a>.<\/p>","references":[{"id":68294,"section_number":"62.1-132.3:5","catch_line":"Virginia Port Volume Increase Grant Program and Fund","order_by":null,"url":"\/62.1-132.3_5\/"}],"refers_to":[{"id":64280,"section_number":"58.1-1823","catch_line":"Reassessment and refund upon the filing of amended return or the payment of an assessment","order_by":null,"url":"\/58.1-1823\/"},{"id":62270,"section_number":"58.1-320","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-320\/"},{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"},{"id":54175,"section_number":"58.1-439.12:09","catch_line":"Barge and rail usage tax credit","order_by":null,"url":"\/58.1-439.12_09\/"}],"permalink":{"id":253595,"object_type":"law","relational_id":78639,"identifier":"58.1-439.12:10","token":"58.1\/I\/3\/13\/58.1-439.12_10","url":"\/58.1-439.12_10\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-439.12_10\/","token":"58.1\/I\/3\/13\/58.1-439.12_10","dublin_core":{"Title":"Virginia port volume increase tax credit","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-439.12:10","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section, unless the context indicates otherwise:\n\t\t\t“Agricultural entity<\/span>” means a person engaged in growing or producing wheat, grains, fruits, nuts, crops; tobacco, nursery, or floral products; forestry products excluding raw wood fiber or wood fiber processed or manufactured for use as fuel for the generation of electricity; or seafood, meat, dairy, or poultry products.\n\t\t\t“Base year port cargo volume<\/span><\/span>” means the total amount of (i) net tons of noncontainerized cargo, (ii) TEUs<\/span> of cargo, or (iii) units of roll-on\/roll-off cargo actually transported by way of a waterborne ship or vehicle through a port facility<\/span> during the period from (i) January 1, 2010, through December 31, 2010, for manufacturing-related entities or (ii) January 1, 2012, through December 31, 2012, for agricultural entities and mineral and gas entities. Base year port cargo volume<\/span><\/span> must be at least 75 net tons of noncontainerized cargo, 10 loaded TEUs<\/span>, or 10 units of roll-on\/roll-off cargo for a taxpayer<\/span> to be eligible for the credits provided in this section. For a taxpayer<\/span> that does not ship that amount in the year ending December 31, 2010, or December 31, 2012, as applicable, including a taxpayer<\/span> who locates in Virginia after such periods, its base cargo volume will be measured by the initial January 1 through December 31 calendar year in which it meets the requirements of 75 net tons of noncontainerized cargo, 10 loaded TEUs<\/span>, or 10 units of roll-on\/roll-off cargo. Base year port cargo volume<\/span><\/span> must be recalculated each calendar year after the initial base year.\n\t\t\t“Major facility<\/span>” means a new facility to be located in Virginia that is projected to import or export cargo through a port in excess of 25,000 TEUs<\/span> in its first calendar year.\n\t\t\t“Manufacturing-related entity<\/span>” means a person engaged in the manufacturing of goods or the distribution of manufactured goods.\n\t\t\t“Mineral and gas entity<\/span>” means a person engaged in severing minerals or gases from the earth.\n\t\t\t“Port cargo volume<\/span>” means the total amount of net tons of noncontainerized cargo, net units of roll-on\/roll-off cargo, or containers measured in TEUs<\/span> of cargo transported by way of a waterborne ship or vehicle through a port facility<\/span>.\n\t\t\t“Port facility<\/span>” means any publicly or privately owned facility located within the Commonwealth through which cargo is transported by way of a waterborne ship or vehicle to or from destinations outside the Commonwealth and which handles cargo owned by third parties in addition to cargo owned by the port facility<\/span>’s owner.\n\t\t\t“TEU<\/span>” or “20-foot equivalent unit” means a volumetric measure based on the size of a container that is 20 feet long by eight feet wide by eight feet, six inches high. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. For taxable years beginning on and after January 1, 2011, but before January 1, 2025, a taxpayer<\/span> that is an agricultural entity<\/span>, manufacturing-related entity<\/span>, or mineral and gas entity<\/span> that uses port facilities in the Commonwealth and increases its port cargo volume<\/span> at these facilities by a minimum of five percent in a single calendar year over its base year port cargo volume<\/span><\/span> is eligible to claim a credit against the tax levied pursuant to \u00a7\u00a7 58.1-320<\/a> and 58.1-400<\/a> in an amount determined by the Virginia Port Authority. The Virginia Port Authority may waive<\/span> the requirement that port cargo volume<\/span> be increased by a minimum of five percent over base year port cargo volume<\/span><\/span> for any taxpayer<\/span> that qualifies as a major facility<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Qualifying taxpayers<\/span> that increase their port cargo volume<\/span> by a minimum of five percent in a qualifying calendar year shall receive a $50 credit against the tax levied pursuant to §§ 58.1-320<\/a> and 58.1-400<\/a> for each TEU<\/span>, unit of roll-on\/roll-off cargo, or 16 net tons of noncontainerized cargo, as applicable, above the base year port cargo volume<\/span><\/span>. A qualifying taxpayer<\/span> that is a major facility<\/span> as defined in this section shall receive a $50 credit against the tax levied pursuant to §§ 58.1-320<\/a> and 58.1-400<\/a> for each TEU<\/span>, unit of roll-on\/roll-off cargo, or 16 net tons of noncontainerized cargo, as applicable, transported through a port facility<\/span> during the major facility<\/span>’s first calendar year. A qualifying taxpayer<\/span> may not receive more than $250,000 for each calendar year except as provided for in subdivision C 2. The maximum amount of credits allowed for all qualifying taxpayers<\/span> pursuant to this section shall not exceed $3.2 million for each calendar year. The Virginia Port Authority shall allocate the credits pursuant to the provisions in subdivisions C 1 and C 2. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If the credit exceeds the taxpayer<\/span>’s tax liability for the taxable year, the excess amount may be carried forward and claimed against income taxes in the next five succeeding taxable years. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The credit may be claimed by the taxpayer<\/span> as provided in subdivision 1 only if the taxpayer<\/span> owns the cargo at the time the port facilities are used. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> 1. For every year in which a taxpayer<\/span> claims the credit, the taxpayer<\/span> shall submit an application to the Virginia Port Authority by March 1 of the calendar year after the calendar year in which the increase in port cargo volume<\/span> occurs. The taxpayer<\/span> shall attach a schedule to the taxpayer<\/span>’s application to the Virginia Port Authority with the following information and any other information requested by the Virginia Port Authority or the Department<\/span>:\n\t\t\ta. A description of how the base year port cargo volume<\/span><\/span> and the increase in port cargo volume<\/span> were determined;\n\t\t\tb. The amount of the base year port cargo volume<\/span><\/span>;\n\t\t\tc. The amount of the increase in port cargo volume<\/span> for the taxable year stated both as a percentage increase and as a total increase in net tons of noncontainerized cargo, TEUs<\/span> of cargo, and units of roll-on\/roll-off cargo, as applicable, including information that demonstrates an increase in port cargo volume<\/span> in excess of the minimum amount required to claim the tax credits pursuant to this section;\n\t\t\td. Any tax credit utilized by the taxpayer<\/span> in prior years; and\n\t\t\te. The amount of tax credit carried over from prior years. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If on March 15 of each year the $3.2 million amount of credit is not fully allocated among qualifying taxpayers<\/span>, then those taxpayers<\/span> who have been allocated a credit for the prior year shall be allowed a pro rata share of the remaining allocated credit up to $3.2 million. If on March 15 of each year, the cumulative amount of tax credits requested by qualifying taxpayers<\/span> for the prior year exceeds $3.2 million, then the $3.2 million in credits shall be prorated among the qualifying taxpayers<\/span> who requested the credit. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The taxpayer<\/span> shall claim the credit on its income tax return in a manner prescribed by the Department<\/span>. The Department<\/span> may require a copy of the certification form issued by the Virginia Port Authority be attached to the return or otherwise provided. Qualifying taxpayers<\/span> may also claim the credit pursuant to § 58.1-439.12:09<\/a> for the same containers, noncontainerized cargo, or roll-on\/roll-off units of cargo for which a credit is claimed under this section provided such taxpayer<\/span> meets the applicable criteria set forth therein. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> 1. Any taxpayer<\/span> holding a credit under this section may transfer unused but otherwise allowable credit for use by another taxpayer<\/span> on Virginia income tax returns. A taxpayer<\/span> who transfers any amount of credit under this section shall file a notification of such transfer to the Department<\/span> in accordance with procedures and forms prescribed by the Tax Commissioner<\/span>. The transferred credits may be retroactively applied from the date such credits were originally issued, and the transferee may file an amended return under this chapter to claim such transferred credit for a prior tax year. However, nothing in this section shall be construed to extend the statute of limitations<\/span> for filing an amended return under \u00a7 58.1-1823<\/a> or any other provision of law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> No transfer of tax credits pursuant to the provisions of this subsection shall be allowed unless such transfer occurs within one calendar year of the credit holder earning such credit. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Only tax credits issued in taxable years beginning on and after January 1, 2018, but before January 1, 2025, shall be transferable pursuant to the provisions of this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Credits granted to a partnership, limited liability company, or electing small business corporation<\/span> (S corporation<\/span>) shall be allocated to the individual<\/span> partners, members, or shareholders, respectively, in proportion to their ownership interests in such business entities. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nVIRGINIA PORT VOLUME INCREASE TAX CREDIT (\u00a7 58.1-439.12:10)\n\nA. As used in this section, unless the context indicates otherwise:\n\t\t\t“Agricultural entity” means a person engaged in growing or\nproducing wheat, grains, fruits, nuts, crops; tobacco, nursery, or floral\nproducts; forestry products excluding raw wood fiber or wood fiber processed or\nmanufactured for use as fuel for the generation of electricity; or seafood,\nmeat, dairy, or poultry products.\n\t\t\t“Base year port cargo volume” means the total amount of (i) net\ntons of noncontainerized cargo, (ii) TEUs of cargo, or (iii) units of\nroll-on\/roll-off cargo actually transported by way of a waterborne ship or\nvehicle through a port facility during the period from (i) January 1, 2010,\nthrough December 31, 2010, for manufacturing-related entities or (ii) January 1,\n2012, through December 31, 2012, for agricultural entities and mineral and gas\nentities. Base year port cargo volume must be at least 75 net tons of\nnoncontainerized cargo, 10 loaded TEUs, or 10 units of roll-on\/roll-off cargo\nfor a taxpayer to be eligible for the credits provided in this section. For a\ntaxpayer that does not ship that amount in the year ending December 31, 2010, or\nDecember 31, 2012, as applicable, including a taxpayer who locates in Virginia\nafter such periods, its base cargo volume will be measured by the initial\nJanuary 1 through December 31 calendar year in which it meets the requirements\nof 75 net tons of noncontainerized cargo, 10 loaded TEUs, or 10 units of\nroll-on\/roll-off cargo. Base year port cargo volume must be recalculated each\ncalendar year after the initial base year.\n\t\t\t“Major facility” means a new facility to be located in Virginia\nthat is projected to import or export cargo through a port in excess of 25,000\nTEUs in its first calendar year.\n\t\t\t“Manufacturing-related entity” means a person engaged in the\nmanufacturing of goods or the distribution of manufactured goods.\n\t\t\t“Mineral and gas entity” means a person engaged in severing\nminerals or gases from the earth.\n\t\t\t“Port cargo volume” means the total amount of net tons of\nnoncontainerized cargo, net units of roll-on\/roll-off cargo, or containers\nmeasured in TEUs of cargo transported by way of a waterborne ship or vehicle\nthrough a port facility.\n\t\t\t“Port facility” means any publicly or privately owned facility\nlocated within the Commonwealth through which cargo is transported by way of a\nwaterborne ship or vehicle to or from destinations outside the Commonwealth and\nwhich handles cargo owned by third parties in addition to cargo owned by the\nport facility’s owner.\n\t\t\t“TEU” or “20-foot equivalent unit” means a volumetric\nmeasure based on the size of a container that is 20 feet long by eight feet wide\nby eight feet, six inches high.\n\nB. 1. For taxable years beginning on and after January 1, 2011, but before\nJanuary 1, 2025, a taxpayer that is an agricultural entity,\nmanufacturing-related entity, or mineral and gas entity that uses port\nfacilities in the Commonwealth and increases its port cargo volume at these\nfacilities by a minimum of five percent in a single calendar year over its base\nyear port cargo volume is eligible to claim a credit against the tax levied\npursuant to \u00a7\u00a7 58.1-320 and 58.1-400 in an amount determined by the Virginia\nPort Authority. The Virginia Port Authority may waive the requirement that port\ncargo volume be increased by a minimum of five percent over base year port cargo\nvolume for any taxpayer that qualifies as a major facility.\n\n 2. Qualifying taxpayers that increase their port cargo volume by a minimum of\n five percent in a qualifying calendar year shall receive a $50 credit against\n the tax levied pursuant to §§ 58.1-320 and 58.1-400 for each TEU,\n unit of roll-on\/roll-off cargo, or 16 net tons of noncontainerized cargo, as\n applicable, above the base year port cargo volume. A qualifying taxpayer that\n is a major facility as defined in this section shall receive a $50 credit\n against the tax levied pursuant to §§ 58.1-320 and 58.1-400 for each\n TEU, unit of roll-on\/roll-off cargo, or 16 net tons of noncontainerized cargo,\n as applicable, transported through a port facility during the major\n facility’s first calendar year. A qualifying taxpayer may not receive\n more than $250,000 for each calendar year except as provided for in\n subdivision C 2. The maximum amount of credits allowed for all qualifying\n taxpayers pursuant to this section shall not exceed $3.2 million for each\n calendar year. The Virginia Port Authority shall allocate the credits pursuant\n to the provisions in subdivisions C 1 and C 2.\n\n 3. If the credit exceeds the taxpayer’s tax liability for the taxable\n year, the excess amount may be carried forward and claimed against income\n taxes in the next five succeeding taxable years.\n\n 4. The credit may be claimed by the taxpayer as provided in subdivision 1 only\n if the taxpayer owns the cargo at the time the port facilities are used.\n\nC. 1. For every year in which a taxpayer claims the credit, the taxpayer shall\nsubmit an application to the Virginia Port Authority by March 1 of the calendar\nyear after the calendar year in which the increase in port cargo volume occurs.\nThe taxpayer shall attach a schedule to the taxpayer’s application to the\nVirginia Port Authority with the following information and any other information\nrequested by the Virginia Port Authority or the Department:\n\t\t\ta. A description of how the base year port cargo volume and the increase in\nport cargo volume were determined;\n\t\t\tb. The amount of the base year port cargo volume;\n\t\t\tc. The amount of the increase in port cargo volume for the taxable year\nstated both as a percentage increase and as a total increase in net tons of\nnoncontainerized cargo, TEUs of cargo, and units of roll-on\/roll-off cargo, as\napplicable, including information that demonstrates an increase in port cargo\nvolume in excess of the minimum amount required to claim the tax credits\npursuant to this section;\n\t\t\td. Any tax credit utilized by the taxpayer in prior years; and\n\t\t\te. The amount of tax credit carried over from prior years.\n\n 2. If on March 15 of each year the $3.2 million amount of credit is not fully\n allocated among qualifying taxpayers, then those taxpayers who have been\n allocated a credit for the prior year shall be allowed a pro rata share of the\n remaining allocated credit up to $3.2 million. If on March 15 of each year,\n the cumulative amount of tax credits requested by qualifying taxpayers for the\n prior year exceeds $3.2 million, then the $3.2 million in credits shall be\n prorated among the qualifying taxpayers who requested the credit.\n\n 3. The taxpayer shall claim the credit on its income tax return in a manner\n prescribed by the Department. The Department may require a copy of the\n certification form issued by the Virginia Port Authority be attached to the\n return or otherwise provided. Qualifying taxpayers may also claim the credit\n pursuant to § 58.1-439.12:09 for the same containers, noncontainerized\n cargo, or roll-on\/roll-off units of cargo for which a credit is claimed under\n this section provided such taxpayer meets the applicable criteria set forth\n therein.\n\nD. 1. Any taxpayer holding a credit under this section may transfer unused but\notherwise allowable credit for use by another taxpayer on Virginia income tax\nreturns. A taxpayer who transfers any amount of credit under this section shall\nfile a notification of such transfer to the Department in accordance with\nprocedures and forms prescribed by the Tax Commissioner. The transferred credits\nmay be retroactively applied from the date such credits were originally issued,\nand the transferee may file an amended return under this chapter to claim such\ntransferred credit for a prior tax year. However, nothing in this section shall\nbe construed to extend the statute of limitations for filing an amended return\nunder \u00a7 58.1-1823 or any other provision of law.\n\n 2. No transfer of tax credits pursuant to the provisions of this subsection\n shall be allowed unless such transfer occurs within one calendar year of the\n credit holder earning such credit.\n\n 3. Only tax credits issued in taxable years beginning on and after January 1,\n 2018, but before January 1, 2025, shall be transferable pursuant to the\n provisions of this subsection.\n\nE. Credits granted to a partnership, limited liability company, or electing\nsmall business corporation (S corporation) shall be allocated to the individual\npartners, members, or shareholders, respectively, in proportion to their\nownership interests in such business entities.\n\nHISTORY: 2011, cc. 831, 872; 2012, cc. 846, 849; 2013, c. 744; 2014, c. 423;\n2016, c. 69; 2019, c. 759; 2021, Sp. Sess. I, c. 373.","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}}