                                 CODE OF VIRGINIA

FARM WINERIES AND VINEYARDS TAX CREDIT (§ 58.1-339.12)

A. As used in this section, unless the context requires a different meaning:
			&#8220;Qualified capital expenditures&#8221; means all expenditures made by
the taxpayer for the purchase and installation of barrels, bins, bottling
equipment, capsuling equipment, chemicals, corkers, crushers and destemmers,
dirt, fermenters, or other recognized fermentation devices, fertilizer and soil
amendments, filters, grape harvesters, grape plants, hoses, irrigation
equipment, labeling equipment, poles, posts, presses, pumps, refractometers,
refrigeration equipment, seeders, tanks, tractors, vats, weeding and spraying
equipment, wine tanks, and wire.
			&#8220;Virginia vineyard&#8221; means agricultural lands located in the
Commonwealth consisting of at least one contiguous acre dedicated to the growing
of grapes that are used or are intended to be used in the production of wine by
a Virginia farm winery as well as any plants or other improvements located
thereon.
			&#8220;Virginia farm winery&#8221; means an establishment located in the
Commonwealth that is licensed as a Virginia farm winery pursuant to &#xA7;
4.1-206.1.

B. For taxable years beginning on and after January 1, 2011, any Virginia farm
winery or vineyard shall be entitled to a credit against the tax levied pursuant
to &#xA7;&#xA7; 58.1-320 and 58.1-400 for qualified capital expenditures made in
connection with the establishment of new Virginia farm wineries or vineyards and
capital improvements made to existing Virginia farm wineries or vineyards. The
amount of the credit shall be equal to 25 percent of all qualified capital
expenditures.

C. The total amount of tax credits available under this section for a calendar
year shall not exceed $250,000. In the event that applications for such credit
exceed $250,000 for any calendar, the Department of Taxation shall allocate the
credits on a pro rata basis.

D. If the amount of the credit exceeds the taxpayer&#8217;s tax liability for
the taxable year, the excess may be carried over for credit against the income
taxes of the taxpayer in the next 10 taxable years, or until the total credit
amount has been taken, whichever occurs first.

E. For purposes of this section, the amount of any credit attributable to a
partnership, electing small business corporation (S corporation), or limited
liability company shall be allocated to the individual partners, shareholders,
or members, respectively, in proportion to their ownership or interest in such
business entities.

F. The credit allowed in this section shall not be claimed to the extent the
taxpayer has claimed a deduction for the same expenses for federal income tax
purposes under &#xA7; 179 of the Internal Revenue Code, as amended.

HISTORY: 2011, cc. 214, 226; 2020, cc. 1113, 1114.