                                 CODE OF VIRGINIA

FIREARM SAFETY DEVICE TAX CREDIT (§ 58.1-339.14)

A. For the purposes of this section:
			&#8220;Commercial retailer&#8221; means a business that sells goods or
services to customers in a retail setting and is properly registered as a dealer
pursuant to &#xA7; 58.1-613.
			&#8220;Eligible transaction&#8221; means a transaction in which a taxpayer
purchases one or more firearm safety devices from a commercial retailer. An
&#8220;eligible transaction&#8221; does not include the purchase of a firearm.
			&#8220;Firearm&#8221; means any handgun, shotgun, rifle, or other firearm
that will or is designed to or may readily be converted to expel single or
multiple projectiles by action of an explosion of a combustible material.
			&#8220;Firearm safety device&#8221; means (i) any device that, when installed
on a firearm, is designed to prevent the firearm from being operated without
first deactivating the device or (ii) a safe, gun safe, gun case, lock box, or
other device that is designed to be or can be used to store a firearm and that
is designed to be unlocked only by means of a key, a combination, or other
similar means.

B. For taxable years beginning on and after January 1, 2024, but before January
1, 2028, a taxpayer shall be allowed a nonrefundable credit against the tax
levied pursuant to &#xA7; 58.1-320 for up to $300 for the cost incurred in the
purchase of one or more firearm safety devices in an eligible transaction. A
taxpayer shall be allowed only one credit under this section per taxable year.
The taxpayer shall submit purchase receipts with the income tax return to verify
the amount of purchase price paid for the firearm safety device or firearm
safety devices. The aggregate amount of credits allowable under this section
shall not exceed $5 million per taxable year. Credits shall be allocated by the
Department on a first-come, first-served basis.

C. The amount of the credit that may be claimed in any single taxable year shall
not exceed the individual&#8217;s liability for taxes imposed by this chapter
for that taxable year. If the amount of the credit allowed under this section
exceeds the individual&#8217;s tax liability for the taxable year in which the
eligible transaction occurred, the amount that exceeds the tax liability may be
carried over for credit against the income taxes of the individual in the next
five taxable years or until the total amount of the tax credit has been taken,
whichever is sooner.

D. The Tax Commissioner shall develop guidelines for claiming the credit
provided by this section. Such guidelines shall be exempt from the provisions of
the Administrative Process Act (&#xA7; 2.2-4000 et seq.).

HISTORY: 2023, c. 220; 2024, c. 522; 2025, cc. 289, 303.