                                 CODE OF VIRGINIA

VIRGINIA COAL EMPLOYMENT AND PRODUCTION INCENTIVE TAX CREDIT (§ 58.1-433.1)

A. For taxable years beginning on and after January 1, 2001, but before January
1, 2022, every electricity generator in the Commonwealth shall be allowed a
$3-per-ton credit against the tax imposed by &#xA7; 58.1-400 or 58.1-400.2 for
each ton of coal purchased and consumed by such electricity generator, provided
such coal was mined in Virginia as certified by such seller. Notwithstanding any
other provision of law, no electricity generator shall be allowed more than a
$3-per-ton coal tax credit and shall be subject to all limitations set forth in
&#xA7; 58.1-400.2. In no event shall the credit allowed hereunder exceed the
total amount of tax liability of such taxpayer. Any tax credit not usable for
the taxable year may be carried over to the extent usable for the next 10
succeeding taxable years or until the full credit is utilized, whichever is
sooner. For the purposes of the credit provided by this section,
&#8220;electricity generator&#8221; means any person who produces electricity
for self-consumption or for sale.

B. For each such ton of coal described in subsection A that is purchased on or
after January 1, 2006, but before January 1, 2022, from any person with an
economic interest in coal as defined under &#xA7; 58.1-439.2, the $3-per-ton
credit allowed under subsection A may be allocated between such electricity
generator and such person with an economic interest in coal. The allocation of
the $3-per-ton credit may be provided in the contract between such parties for
the sale of such coal. Such allocation may be amended by the execution of a
written instrument by the parties prior to December 31 of the year of purchase
of such coal. Such contracts and written instruments shall be subject to audit
by the Department of Taxation to ensure the proper application of credits.
			In no case shall the credit allocated for each such ton of coal among such
electricity generators and such persons with an economic interest in coal exceed
$3 per ton.
			All credits earned on or after January 1, 2006, but before January 1, 2022,
that are allocated to persons with an economic interest in coal as provided
under this subsection may be used as tax credits by such persons against the tax
imposed by &#xA7; 58.1-400 and any other tax imposed by the Commonwealth. If the
credits earned on or after January 1, 2006, but before January 1, 2022, exceed
the state tax liability for the applicable taxable year of such person with an
economic interest in coal, the excess shall be redeemable by the Tax
Commissioner as set forth in subsection D of &#xA7; 58.1-439.2, provided that
the ability of persons with an economic interest in coal to redeem with the Tax
Commissioner credits received pursuant to an allocation under this section shall
expire for credits earned under this section on or after July 1, 2016.

C. If tax credits were earned under the provisions of this section prior to
January 1, 2022, such credits may continue to be claimed on a return for taxable
years on and after January 1, 2022, but only pursuant to the applicable
carryover period specified in this section. A taxpayer claiming credits pursuant
to the provisions of this subsection shall not claim more than $1 million in
credits for a single taxable year. No taxpayer shall amend a return for a
taxable year prior to January 1, 2022, to claim more in credits earned under the
provisions of this section than such taxpayer stated on such return before
amending it.

HISTORY: 1999, c. 971; 2000, c. 929; 2006, cc. 788, 803; 2011, cc. 294, 851;
2021, Sp. Sess. I, cc. 553, 554.