                                 CODE OF VIRGINIA

RAILWAY COMPANIES; APPORTIONMENT (§ 58.1-420)

A. Notwithstanding the provisions of &#xA7; 58.1-408, railway companies shall
determine their net apportionable income to the Commonwealth by multiplying the
Virginia taxable income of such company, excluding the classes of income
allocable under &#xA7; 58.1-407, by the use of the ratio of revenue car miles in
the Commonwealth to total revenue car miles of the company everywhere. For the
purposes of this section, &#8220;revenue car mile&#8221; in the case of railway
carriers of property or passengers means the movement of a unit of loaded car
equipment a distance of one mile. The loaded car miles shall be determined in
accordance with the Uniform System of Accounts for Railroad Companies of the
Interstate Commerce Commission.

B. Any eligible company, as defined in &#xA7; 58.1-405.1, may subtract its
revenue car miles traveled in any qualified locality or qualified localities, as
defined in &#xA7; 58.1-405.1, during the taxable year from the numerator of the
ratio in subsection A. 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 (i) total, cumulative new capital investment falls below the
applicable initial threshold or (ii) number of new jobs falls below the
applicable initial threshold.

HISTORY: Code 1950, §§ 58-151.021, 58-151.050:3; 1971, Ex. Sess., c. 171;
1978, c. 784; 1979, c. 371; 1981, c. 402; 1984, c. 675; 2018, cc. 801, 802.