{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-439.20.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-439.20.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-439.20.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-439.20.html"}],"law_id":81203,"edition_id":1,"section_id":81203,"structure_id":14309,"section_number":"58.1-439.20","catch_line":"Proposals to the State Board of Social Services; regulations; tax credits authorized","history":"2008, c. 585; 2009, cc. 10, 502, 851; 2011, c. 317; 2012, cc. 731, 837, 842; 2013, cc. 713, 716, 802; 2014, cc. 47, 189, 416, 712; 2016, c. 426; 2017, cc. 147, 723, 724.","full_text":"A\n\nAny neighborhood organization may submit a proposal, other than education proposals which shall be applied for and allocated pursuant to the provisions of § 58.1-439.20:1, to the Commissioner of Social Services requesting an allocation of tax credits for use by business firms making donations to the neighborhood organization.\n\t\t\tThe proposal shall set forth the program to be conducted by the neighborhood organization, the low-income persons to be assisted, the estimated amount to be donated to the program, and the plans for implementing the program.B\n\n1. The State Board of Social Services is hereby authorized to adopt regulations for the approval or disapproval of such proposals by neighborhood organizations and for determining the value of the donations.2\n\nIn order to be eligible to receive an allocation of tax credits pursuant to this article, a neighborhood organization shall have been in existence for at least one year. As a prerequisite for approval, neighborhood organizations with total revenues of (i) more than $100,000 shall provide to the Commissioner of Social Services an audit or review for the most recent year or (ii) $100,000 or less shall provide to the Commissioner of Social Services a compilation for the most recent year. Such audit, review, or compilation shall be performed by an independent certified public accountant. For purposes of this subdivision, “total revenues” means all revenues, including the value of all donations, for the organization’s most recent year. No proposal for an allocation of tax credits shall be untimely filed solely because such audit, review, or compilation was not submitted by the neighborhood organization by the proposal filing deadline, provided that the audit, review, or compilation is submitted to the Commissioner of Social Services within the 30-day period immediately following such deadline.3\n\nIn order to be eligible to receive an allocation of credits pursuant to this article, at least 50 percent of the persons served by the neighborhood organization shall be low-income persons, and at least 50 percent of the neighborhood organization’s revenues shall be used to provide services to low-income persons.4\n\nIn order for a proposal to be approved, an applicant neighborhood organization and any of its affiliates shall meet the requirements of this section and the application regulations.\n\t\t\t\tHowever, beginning with tax credit allocations for fiscal year 2016-2017 and thereafter, such requirement for a proposal submitted by a neighborhood organization to the Commissioner of Social Services shall not apply in determining the eligibility of the neighborhood organization submitting a proposal, provided that (i) the neighborhood organization otherwise meets all statutory requirements and regulations, (ii) the neighborhood organization received a fiscal year 2013-2014 allocation of neighborhood assistance tax credits, and (iii) no affiliate of the neighborhood organization submits a proposal for or receives an allocation of tax credits pursuant to this article for the program year for which the neighborhood organization has submitted its proposal.5\n\nThe regulations shall provide for the equitable allocation of the available amount of tax credits among the approved proposals submitted by neighborhood organizations. In allocating credits, the Commissioner of Social Services or the Superintendent of Public Instruction shall consider the past performance of neighborhood organizations that have received allocations of credits, including review of performance metrics, success in reaching targeted goals, or other measures of accountability that may be established by regulations or guidelines.6\n\nThe regulations or guidelines shall provide that in any year in which the available amount of tax credits exceeds the previous year’s available amount, at least 10 percent of the excess amount shall be allocated to qualified programs proposed by neighborhood organizations that did not receive any allocations in the preceding year. If the amount of tax credits requested by such neighborhood organizations is less than 10 percent of the excess amount, the unallocated portion of such 10 percent shall be allocated to qualified programs proposed by other neighborhood organizations.C\n\n1. If the Commissioner of Social Services approves a proposal submitted by a neighborhood organization, the organization shall make the allocated tax credit amounts available to business firms making donations to the approved program. A neighborhood organization shall not assign or transfer an allocation of tax credits to another neighborhood organization without the approval of the Commissioner of Social Services.2\n\nNotwithstanding any other provision of law, no more than an aggregate of $0.5 million in tax credits shall be approved in a fiscal year to a neighborhood organization or to a grouping of neighborhood organization affiliates for all other proposals combined.3\n\nIf, after the initial allocation of credits to approved proposals, the State Department of Social Services has a balance of tax credits remaining for the fiscal year that can be used or allocated by a neighborhood organization for a proposal that had been approved for tax credits during the initial allocation, then the Commissioner of Social Services shall reallocate the remaining balance of tax credits to such previously approved proposals to the extent that a neighborhood organization can use or allocate additional tax credits for the previously approved proposal. The $0.5 million annual limitations for tax credits approved to a grouping of neighborhood organization affiliates shall be inapplicable for such reallocation of any balance of tax credits. The balance of tax credits remaining for reallocation shall include the amount of any tax credits that have been granted for a proposal approved during the initial allocation but for which the Commissioner of Social Services received notice from the neighborhood organization that it will not be able to use or allocate such amount for the approved proposal.D\n\nThe total amount of tax credits granted for programs approved by the Commissioner of Social Services under this article for each fiscal year shall not exceed $8 million for fiscal year 2015-2016 and each fiscal year thereafter.\n\t\t\tThe Commissioner of Social Services shall work cooperatively with the Superintendent of Public Instruction for purposes of ensuring that neighborhood organization proposals are submitted to the proper state agency pursuant to this section and § 58.1-439.20:1. The Commissioner of Social Services may request the assistance of the Department of Taxation for purposes of determining whether or not anticipated donations for which tax credits are requested by a neighborhood organization likely qualify as a charitable donation under federal tax laws and regulations.E\n\nActions of the State Department of Social Services, or the Commissioner of the same, relating to the review of neighborhood organization proposals and the allocation of tax credits to proposals shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.). Decisions of the State Department of Social Services, or the Commissioner of the same, shall be final and not subject to review or appeal.","order_by":null,"text":{"0":{"id":291048,"text":"Any neighborhood organization may submit a proposal, other than education proposals which shall be applied for and allocated pursuant to the provisions of § 58.1-439.20:1, to the Commissioner of Social Services requesting an allocation of tax credits for use by business firms making donations to the neighborhood organization.\n\t\t\tThe proposal shall set forth the program to be conducted by the neighborhood organization, the low-income persons to be assisted, the estimated amount to be donated to the program, and the plans for implementing the program.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":291049,"text":"1. The State Board of Social Services is hereby authorized to adopt regulations for the approval or disapproval of such proposals by neighborhood organizations and for determining the value of the donations.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B2"},"2":{"id":291050,"text":"In order to be eligible to receive an allocation of tax credits pursuant to this article, a neighborhood organization shall have been in existence for at least one year. As a prerequisite for approval, neighborhood organizations with total revenues of (i) more than $100,000 shall provide to the Commissioner of Social Services an audit or review for the most recent year or (ii) $100,000 or less shall provide to the Commissioner of Social Services a compilation for the most recent year. Such audit, review, or compilation shall be performed by an independent certified public accountant. For purposes of this subdivision, “total revenues” means all revenues, including the value of all donations, for the organization’s most recent year. No proposal for an allocation of tax credits shall be untimely filed solely because such audit, review, or compilation was not submitted by the neighborhood organization by the proposal filing deadline, provided that the audit, review, or compilation is submitted to the Commissioner of Social Services within the 30-day period immediately following such deadline.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"B3"},"3":{"id":291051,"text":"In order to be eligible to receive an allocation of credits pursuant to this article, at least 50 percent of the persons served by the neighborhood organization shall be low-income persons, and at least 50 percent of the neighborhood organization’s revenues shall be used to provide services to low-income persons.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"4":{"id":291052,"text":"In order for a proposal to be approved, an applicant neighborhood organization and any of its affiliates shall meet the requirements of this section and the application regulations.\n\t\t\t\tHowever, beginning with tax credit allocations for fiscal year 2016-2017 and thereafter, such requirement for a proposal submitted by a neighborhood organization to the Commissioner of Social Services shall not apply in determining the eligibility of the neighborhood organization submitting a proposal, provided that (i) the neighborhood organization otherwise meets all statutory requirements and regulations, (ii) the neighborhood organization received a fiscal year 2013-2014 allocation of neighborhood assistance tax credits, and (iii) no affiliate of the neighborhood organization submits a proposal for or receives an allocation of tax credits pursuant to this article for the program year for which the neighborhood organization has submitted its proposal.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"5":{"id":291053,"text":"The regulations shall provide for the equitable allocation of the available amount of tax credits among the approved proposals submitted by neighborhood organizations. In allocating credits, the Commissioner of Social Services or the Superintendent of Public Instruction shall consider the past performance of neighborhood organizations that have received allocations of credits, including review of performance metrics, success in reaching targeted goals, or other measures of accountability that may be established by regulations or guidelines.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"6":{"id":291054,"text":"The regulations or guidelines shall provide that in any year in which the available amount of tax credits exceeds the previous year’s available amount, at least 10 percent of the excess amount shall be allocated to qualified programs proposed by neighborhood organizations that did not receive any allocations in the preceding year. If the amount of tax credits requested by such neighborhood organizations is less than 10 percent of the excess amount, the unallocated portion of such 10 percent shall be allocated to qualified programs proposed by other neighborhood organizations.","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"C"},"7":{"id":291055,"text":"1. If the Commissioner of Social Services approves a proposal submitted by a neighborhood organization, the organization shall make the allocated tax credit amounts available to business firms making donations to the approved program. A neighborhood organization shall not assign or transfer an allocation of tax credits to another neighborhood organization without the approval of the Commissioner of Social Services.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B6","next_prefix":"C2"},"8":{"id":291056,"text":"Notwithstanding any other provision of law, no more than an aggregate of $0.5 million in tax credits shall be approved in a fiscal year to a neighborhood organization or to a grouping of neighborhood organization affiliates for all other proposals combined.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C","next_prefix":"C3"},"9":{"id":291057,"text":"If, after the initial allocation of credits to approved proposals, the State Department of Social Services has a balance of tax credits remaining for the fiscal year that can be used or allocated by a neighborhood organization for a proposal that had been approved for tax credits during the initial allocation, then the Commissioner of Social Services shall reallocate the remaining balance of tax credits to such previously approved proposals to the extent that a neighborhood organization can use or allocate additional tax credits for the previously approved proposal. The $0.5 million annual limitations for tax credits approved to a grouping of neighborhood organization affiliates shall be inapplicable for such reallocation of any balance of tax credits. The balance of tax credits remaining for reallocation shall include the amount of any tax credits that have been granted for a proposal approved during the initial allocation but for which the Commissioner of Social Services received notice from the neighborhood organization that it will not be able to use or allocate such amount for the approved proposal.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"D"},"10":{"id":291058,"text":"The total amount of tax credits granted for programs approved by the Commissioner of Social Services under this article for each fiscal year shall not exceed $8 million for fiscal year 2015-2016 and each fiscal year thereafter.\n\t\t\tThe Commissioner of Social Services shall work cooperatively with the Superintendent of Public Instruction for purposes of ensuring that neighborhood organization proposals are submitted to the proper state agency pursuant to this section and § 58.1-439.20:1. The Commissioner of Social Services may request the assistance of the Department of Taxation for purposes of determining whether or not anticipated donations for which tax credits are requested by a neighborhood organization likely qualify as a charitable donation under federal tax laws and regulations.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C3","next_prefix":"E"},"11":{"id":291059,"text":"Actions of the State Department of Social Services, or the Commissioner of the same, relating to the review of neighborhood organization proposals and the allocation of tax credits to proposals shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.). Decisions of the State Department of Social Services, or the Commissioner of the same, shall be final and not subject to review or appeal.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":14309,"edition_id":1,"name":"Neighborhood Assistance Act Tax Credit","identifier":"13.2","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:47:41","date_modified":"2026-06-26 03:47:41","permalink":{"id":253653,"object_type":"structure","relational_id":14309,"identifier":"13.2","token":"58.1\/I\/3\/13.2","url":"\/58.1\/I\/3\/13.2\/","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":71554,"structure_id":14309,"section_number":"58.1-439.18","catch_line":"Definitions","url":"\/58.1-439.18\/","token":"58.1\/I\/3\/13.2\/58.1-439.18","metadata":false},{"id":80953,"structure_id":14309,"section_number":"58.1-439.19","catch_line":"Public policy; business firms; donations","url":"\/58.1-439.19\/","token":"58.1\/I\/3\/13.2\/58.1-439.19","metadata":false},{"id":81203,"structure_id":14309,"section_number":"58.1-439.20","catch_line":"Proposals to the State Board of Social Services; regulations; tax credits authorized","url":"\/58.1-439.20\/","token":"58.1\/I\/3\/13.2\/58.1-439.20","metadata":false},{"id":68205,"structure_id":14309,"section_number":"58.1-439.20:1","catch_line":"Proposals to the Department of Education; guidelines; tax credits authorized","url":"\/58.1-439.20_1\/","token":"58.1\/I\/3\/13.2\/58.1-439.20_1","metadata":false},{"id":79720,"structure_id":14309,"section_number":"58.1-439.20:2","catch_line":"Expiration","url":"\/58.1-439.20_2\/","token":"58.1\/I\/3\/13.2\/58.1-439.20_2","metadata":false},{"id":55593,"structure_id":14309,"section_number":"58.1-439.21","catch_line":"Tax credit; amount; limitation; carry over","url":"\/58.1-439.21\/","token":"58.1\/I\/3\/13.2\/58.1-439.21","metadata":false},{"id":73200,"structure_id":14309,"section_number":"58.1-439.22","catch_line":"Donations of professional services","url":"\/58.1-439.22\/","token":"58.1\/I\/3\/13.2\/58.1-439.22","metadata":false},{"id":66992,"structure_id":14309,"section_number":"58.1-439.23","catch_line":"Donations of contracting services","url":"\/58.1-439.23\/","token":"58.1\/I\/3\/13.2\/58.1-439.23","metadata":false},{"id":79905,"structure_id":14309,"section_number":"58.1-439.24","catch_line":"Donations by individuals","url":"\/58.1-439.24\/","token":"58.1\/I\/3\/13.2\/58.1-439.24","metadata":false}],"previous_section":{"id":80953,"structure_id":14309,"section_number":"58.1-439.19","catch_line":"Public policy; business firms; donations","url":"\/58.1-439.19\/","token":"58.1\/I\/3\/13.2\/58.1-439.19","metadata":false},"next_section":{"id":68205,"structure_id":14309,"section_number":"58.1-439.20:1","catch_line":"Proposals to the Department of Education; guidelines; tax credits authorized","url":"\/58.1-439.20_1\/","token":"58.1\/I\/3\/13.2\/58.1-439.20_1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-439.20\/","history_text":"

This law was first created in 2008. The record of its establishment is cataloged in chapter 585<\/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 7 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 2009, chapters 10<\/a>, 502<\/a>, and 851<\/a>; in 2011, chapter 317<\/a>; in 2012, chapters 731<\/a>, 837<\/a>, and 842<\/a>; in 2013, chapters 713<\/a>, 716<\/a>, and 802<\/a>; in 2014, chapters 47<\/a>, 189<\/a>, 416<\/a>, and 712<\/a>; in 2016, chapter 426<\/a>; in 2017, chapters 147<\/a>, 723<\/a>, and 724<\/a>.<\/p>","references":[{"id":68205,"section_number":"58.1-439.20:1","catch_line":"Proposals to the Department of Education; guidelines; tax credits authorized","order_by":null,"url":"\/58.1-439.20_1\/"},{"id":55593,"section_number":"58.1-439.21","catch_line":"Tax credit; amount; limitation; carry over","order_by":null,"url":"\/58.1-439.21\/"},{"id":79905,"section_number":"58.1-439.24","catch_line":"Donations by individuals","order_by":null,"url":"\/58.1-439.24\/"}],"refers_to":[{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":68205,"section_number":"58.1-439.20:1","catch_line":"Proposals to the Department of Education; guidelines; tax credits authorized","order_by":null,"url":"\/58.1-439.20_1\/"}],"permalink":{"id":253663,"object_type":"law","relational_id":81203,"identifier":"58.1-439.20","token":"58.1\/I\/3\/13.2\/58.1-439.20","url":"\/58.1-439.20\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-439.20\/","token":"58.1\/I\/3\/13.2\/58.1-439.20","dublin_core":{"Title":"Proposals to the State Board of Social Services; regulations; tax credits authorized","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-439.20","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any neighborhood organization<\/span> may submit a proposal, other than education<\/span> proposals which shall be applied for and allocated pursuant to the provisions of § 58.1-439.20:1<\/a>, to the Commissioner of Social Services<\/span> requesting an allocation of tax credits for use by business firms<\/span> making donations to the neighborhood organization<\/span>.\n\t\t\tThe proposal shall set forth the program to be conducted by the neighborhood organization<\/span>, the low-income persons<\/span> to be assisted, the estimated amount to be donated to the program, and the plans for implementing the program. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. The State Board of Social Services is hereby authorized to adopt regulations for the approval or disapproval of such proposals by neighborhood organizations<\/span> and for determining the value of the donations. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> In order<\/span> to be eligible to receive an allocation of tax credits pursuant to this article, a neighborhood organization<\/span> shall have been in existence for at least one year. As a prerequisite for approval, neighborhood organizations<\/span> with total revenues<\/span> of (i) more than $100,000 shall provide to the Commissioner of Social Services<\/span> an audit or review for the most recent year or (ii) $100,000 or less shall provide to the Commissioner of Social Services<\/span> a compilation for the most recent year. Such audit, review, or compilation shall be performed by an independent certified public accountant. For purposes of this subdivision, “total revenues<\/span>” means all revenues, including the value of all donations, for the organization’s most recent year. No proposal for an allocation of tax credits shall be untimely filed solely because such audit, review, or compilation was not submitted by the neighborhood organization<\/span> by the proposal filing deadline, provided that the audit, review, or compilation is submitted to the Commissioner of Social Services<\/span> within the 30-day period immediately following such deadline. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> In order<\/span> to be eligible to receive an allocation of credits pursuant to this article, at least 50 percent of the persons served by the neighborhood organization<\/span> shall be low-income persons<\/span>, and at least 50 percent of the neighborhood organization<\/span>’s revenues shall be used to provide services to low-income persons<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> In order<\/span> for a proposal to be approved, an applicant neighborhood organization<\/span> and any of its affiliates<\/span> shall meet the requirements of this section and the application regulations.\n\t\t\t\tHowever, beginning with tax credit allocations for fiscal year 2016-2017 and thereafter, such requirement for a proposal submitted by a neighborhood organization<\/span> to the Commissioner of Social Services<\/span> shall not apply in determining the eligibility of the neighborhood organization<\/span> submitting a proposal, provided that (i) the neighborhood organization<\/span> otherwise meets all statutory requirements and regulations, (ii) the neighborhood organization<\/span> received a fiscal year 2013-2014 allocation of neighborhood assistance<\/span> tax credits, and (iii) no affiliate<\/span> of the neighborhood organization<\/span> submits a proposal for or receives an allocation of tax credits pursuant to this article for the program year for which the neighborhood organization<\/span> has submitted its proposal. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The regulations shall provide for the equitable<\/span> allocation of the available amount of tax credits among the approved proposals submitted by neighborhood organizations<\/span>. In allocating credits, the Commissioner of Social Services<\/span> or the Superintendent of Public Instruction shall consider the past performance of neighborhood organizations<\/span> that have received allocations of credits, including review of performance metrics, success in reaching targeted goals, or other measures of accountability that may be established by regulations or guidelines. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The regulations or guidelines shall provide that in any year in which the available amount of tax credits exceeds the previous year’s available amount, at least 10 percent of the excess amount shall be allocated to qualified programs proposed by neighborhood organizations<\/span> that did not receive any allocations in the preceding year. If the amount of tax credits requested by such neighborhood organizations<\/span> is less than 10 percent of the excess amount, the unallocated portion of such 10 percent shall be allocated to qualified programs proposed by other neighborhood organizations<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> 1. If the Commissioner of Social Services<\/span> approves a proposal submitted by a neighborhood organization<\/span>, the organization shall make the allocated tax credit amounts available to business firms<\/span> making donations to the approved program. A neighborhood organization<\/span> shall not assign or transfer an allocation of tax credits to another neighborhood organization<\/span> without the approval of the Commissioner of Social Services<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Notwithstanding any other provision of law<\/span>, no more than an aggregate of $0.5 million in tax credits shall be approved in a fiscal year to a neighborhood organization<\/span> or to a grouping of neighborhood organization<\/span> affiliates<\/span> for all other proposals combined. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If, after the initial allocation of credits to approved proposals, the State Department<\/span> of Social Services has a balance of tax credits remaining for the fiscal year that can be used or allocated by a neighborhood organization<\/span> for a proposal that had been approved for tax credits during the initial allocation, then the Commissioner of Social Services<\/span> shall reallocate the remaining balance of tax credits to such previously approved proposals to the extent that a neighborhood organization<\/span> can use or allocate additional tax credits for the previously approved proposal. The $0.5 million annual limitations for tax credits approved to a grouping of neighborhood organization<\/span> affiliates<\/span> shall be inapplicable for such reallocation of any balance of tax credits. The balance of tax credits remaining for reallocation shall include the amount of any tax credits that have been granted for a proposal approved during the initial allocation but for which the Commissioner of Social Services<\/span> received notice from the neighborhood organization<\/span> that it will not be able to use or allocate such amount for the approved proposal. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The total amount of tax credits granted for programs approved by the Commissioner of Social Services<\/span> under this article for each fiscal year shall not exceed $8 million for fiscal year 2015-2016 and each fiscal year thereafter.\n\t\t\tThe Commissioner of Social Services<\/span> shall work cooperatively with the Superintendent of Public Instruction for purposes of ensuring that neighborhood organization<\/span> proposals are submitted to the proper state agency pursuant to this section and § 58.1-439.20:1<\/a>. The Commissioner of Social Services<\/span> may request the assistance of the Department<\/span> of Taxation for purposes of determining whether or not anticipated donations for which tax credits are requested by a neighborhood organization<\/span> likely qualify as a charitable donation under federal tax laws<\/span> and regulations. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Actions of the State Department<\/span> of Social Services, or the Commissioner of the same, relating to the review of neighborhood organization<\/span> proposals and the allocation of tax credits to proposals shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000<\/a> et seq.). Decisions of the State Department<\/span> of Social Services, or the Commissioner of the same, shall be final and not subject to review or appeal<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPROPOSALS TO THE STATE BOARD OF SOCIAL SERVICES; REGULATIONS; TAX CREDITS\nAUTHORIZED (\u00a7 58.1-439.20)\n\nA. Any neighborhood organization may submit a proposal, other than education\nproposals which shall be applied for and allocated pursuant to the provisions of\n§ 58.1-439.20:1, to the Commissioner of Social Services requesting an\nallocation of tax credits for use by business firms making donations to the\nneighborhood organization.\n\t\t\tThe proposal shall set forth the program to be conducted by the neighborhood\norganization, the low-income persons to be assisted, the estimated amount to be\ndonated to the program, and the plans for implementing the program.\n\nB. 1. The State Board of Social Services is hereby authorized to adopt\nregulations for the approval or disapproval of such proposals by neighborhood\norganizations and for determining the value of the donations.\n\n 2. In order to be eligible to receive an allocation of tax credits pursuant to\n this article, a neighborhood organization shall have been in existence for at\n least one year. As a prerequisite for approval, neighborhood organizations\n with total revenues of (i) more than $100,000 shall provide to the\n Commissioner of Social Services an audit or review for the most recent year or\n (ii) $100,000 or less shall provide to the Commissioner of Social Services a\n compilation for the most recent year. Such audit, review, or compilation shall\n be performed by an independent certified public accountant. For purposes of\n this subdivision, “total revenues” means all revenues, including\n the value of all donations, for the organization’s most recent year. No\n proposal for an allocation of tax credits shall be untimely filed solely\n because such audit, review, or compilation was not submitted by the\n neighborhood organization by the proposal filing deadline, provided that the\n audit, review, or compilation is submitted to the Commissioner of Social\n Services within the 30-day period immediately following such deadline.\n\n 3. In order to be eligible to receive an allocation of credits pursuant to\n this article, at least 50 percent of the persons served by the neighborhood\n organization shall be low-income persons, and at least 50 percent of the\n neighborhood organization’s revenues shall be used to provide services\n to low-income persons.\n\n 4. In order for a proposal to be approved, an applicant neighborhood\n organization and any of its affiliates shall meet the requirements of this\n section and the application regulations.\n \t\t\t\tHowever, beginning with tax credit allocations for fiscal year 2016-2017\n and thereafter, such requirement for a proposal submitted by a neighborhood\n organization to the Commissioner of Social Services shall not apply in\n determining the eligibility of the neighborhood organization submitting a\n proposal, provided that (i) the neighborhood organization otherwise meets all\n statutory requirements and regulations, (ii) the neighborhood organization\n received a fiscal year 2013-2014 allocation of neighborhood assistance tax\n credits, and (iii) no affiliate of the neighborhood organization submits a\n proposal for or receives an allocation of tax credits pursuant to this article\n for the program year for which the neighborhood organization has submitted its\n proposal.\n\n 5. The regulations shall provide for the equitable allocation of the available\n amount of tax credits among the approved proposals submitted by neighborhood\n organizations. In allocating credits, the Commissioner of Social Services or\n the Superintendent of Public Instruction shall consider the past performance\n of neighborhood organizations that have received allocations of credits,\n including review of performance metrics, success in reaching targeted goals,\n or other measures of accountability that may be established by regulations or\n guidelines.\n\n 6. The regulations or guidelines shall provide that in any year in which the\n available amount of tax credits exceeds the previous year’s available\n amount, at least 10 percent of the excess amount shall be allocated to\n qualified programs proposed by neighborhood organizations that did not receive\n any allocations in the preceding year. If the amount of tax credits requested\n by such neighborhood organizations is less than 10 percent of the excess\n amount, the unallocated portion of such 10 percent shall be allocated to\n qualified programs proposed by other neighborhood organizations.\n\nC. 1. If the Commissioner of Social Services approves a proposal submitted by a\nneighborhood organization, the organization shall make the allocated tax credit\namounts available to business firms making donations to the approved program. A\nneighborhood organization shall not assign or transfer an allocation of tax\ncredits to another neighborhood organization without the approval of the\nCommissioner of Social Services.\n\n 2. Notwithstanding any other provision of law, no more than an aggregate of\n $0.5 million in tax credits shall be approved in a fiscal year to a\n neighborhood organization or to a grouping of neighborhood organization\n affiliates for all other proposals combined.\n\n 3. If, after the initial allocation of credits to approved proposals, the\n State Department of Social Services has a balance of tax credits remaining for\n the fiscal year that can be used or allocated by a neighborhood organization\n for a proposal that had been approved for tax credits during the initial\n allocation, then the Commissioner of Social Services shall reallocate the\n remaining balance of tax credits to such previously approved proposals to the\n extent that a neighborhood organization can use or allocate additional tax\n credits for the previously approved proposal. The $0.5 million annual\n limitations for tax credits approved to a grouping of neighborhood\n organization affiliates shall be inapplicable for such reallocation of any\n balance of tax credits. The balance of tax credits remaining for reallocation\n shall include the amount of any tax credits that have been granted for a\n proposal approved during the initial allocation but for which the Commissioner\n of Social Services received notice from the neighborhood organization that it\n will not be able to use or allocate such amount for the approved proposal.\n\nD. The total amount of tax credits granted for programs approved by the\nCommissioner of Social Services under this article for each fiscal year shall\nnot exceed $8 million for fiscal year 2015-2016 and each fiscal year thereafter.\n\t\t\tThe Commissioner of Social Services shall work cooperatively with the\nSuperintendent of Public Instruction for purposes of ensuring that neighborhood\norganization proposals are submitted to the proper state agency pursuant to this\nsection and § 58.1-439.20:1. The Commissioner of Social Services may\nrequest the assistance of the Department of Taxation for purposes of determining\nwhether or not anticipated donations for which tax credits are requested by a\nneighborhood organization likely qualify as a charitable donation under federal\ntax laws and regulations.\n\nE. Actions of the State Department of Social Services, or the Commissioner of\nthe same, relating to the review of neighborhood organization proposals and the\nallocation of tax credits to proposals shall be exempt from the provisions of\nthe Administrative Process Act (§ 2.2-4000 et seq.). Decisions of the State\nDepartment of Social Services, or the Commissioner of the same, shall be final\nand not subject to review or appeal.\n\nHISTORY: 2008, c. 585; 2009, cc. 10, 502, 851; 2011, c. 317; 2012, cc. 731, 837,\n842; 2013, cc. 713, 716, 802; 2014, cc. 47, 189, 416, 712; 2016, c. 426; 2017,\ncc. 147, 723, 724.","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}}