                                 CODE OF VIRGINIA

WHAT INCOME APPORTIONED AND HOW (§ 58.1-408)

A. The Virginia taxable income of any corporation, except those subject to the
provisions of &#xA7; 58.1-417, 58.1-418, 58.1-419, 58.1-420, 58.1-422,
58.1-422.1, 58.1-422.2, or 58.1-422.3, excluding income allocable under &#xA7;
58.1-407, shall be apportioned to the Commonwealth by multiplying such income by
a fraction, the numerator of which is the property factor plus the payroll
factor, plus twice the sales factor, and the denominator of which is four;
however, where the sales factor does not exist, the denominator of the fraction
shall be the number of existing factors and where the sales factor exists but
the payroll factor or the property factor does not exist, the denominator of the
fraction shall be the number of existing factors plus one.

B. Any eligible company, as defined in &#xA7; 58.1-405.1, may subtract from the
numerator of the corresponding factor the value of its (i) property acquired in
any qualified locality or qualified localities, as defined in &#xA7; 58.1-405.1,
on or after January 1, 2018, but before January 1, 2025; (ii) payroll
attributable to jobs created on or after January 1, 2018, but before January 1,
2025, in any qualified locality or qualified localities; and (iii) sales in the
Commonwealth during the taxable year. Such eligible company may make such
modification for the taxable year in which it first becomes eligible and for the
six subsequent, consecutive taxable years, except for any year in which the
eligible company&#8217;s (a) total, cumulative new capital investment falls
below the applicable initial threshold or (b) number of new jobs falls below the
applicable initial threshold.

HISTORY: Code 1950, § 58-151.041; 1971, Ex. Sess., c. 171; 1981, c. 402; 1984,
c. 675; 1999, cc. 158, 186; 2009, c. 821; 2012, cc. 86, 666; 2015, cc. 92, 237;
2018, cc. 801, 802, 807.