                                 CODE OF VIRGINIA

BARGE AND RAIL USAGE TAX CREDIT (§ 58.1-439.12:09)

A. As used in this section:
			&#8220;International trade facility&#8221; means a company that:

   1. Is doing business in the Commonwealth and engaged in port-related
   activities, including but not limited to warehousing, distribution, freight
   forwarding and handling, and goods processing;

   2. Has the sole discretion and authority to move cargo originating or
   terminating in the Commonwealth;

   3. Uses maritime port facilities located in the Commonwealth; and

   4. Uses barges and rail systems to move cargo through port facilities in the
   Commonwealth rather than trucks or other motor vehicles on the
   Commonwealth&#8217;s highways.

B. For taxable years beginning on and after January 1, 2011, but before January
1, 2025, a company that is an international trade facility shall be allowed a
credit against the taxes imposed by Articles 2 (&#xA7; 58.1-320 et seq.), 6
(&#xA7; 58.1-360 et seq.), and 10 (&#xA7; 58.1-400 et seq.); Chapter 12 (&#xA7;
58.1-1200 et seq.); Article 1 (&#xA7; 58.1-2500 et seq.) of Chapter 25; or
Article 2 (&#xA7; 58.1-2620 et seq.) of Chapter 26. The amount of the credit
shall be $25 per 20-foot equivalent unit (TEU), 16 tons of noncontainerized
cargo, or one unit of roll-on/roll-off cargo moved by barge or rail rather than
by trucks or other motor vehicles on the Commonwealth&#8217;s highways.

C. The Tax Commissioner shall issue tax credits under this section, and in no
case shall the Tax Commissioner issue more than $500,000 in tax credits pursuant
to this section in any fiscal year of the Commonwealth. In addition, the Tax
Commissioner shall not issue tax credits under this section subsequent to the
Commonwealth&#8217;s fiscal year ending on June 30, 2025. The international
trade facility shall not be allowed to claim any tax credit under this section
unless it has applied to the Department for the tax credit and the Department
has approved the credit. The Department shall determine the credit amount
allowable for the year and shall provide a written certification to the
international trade facility, which certification shall report the amount of the
tax credit approved by the Department. The international trade facility shall
attach the certification to the applicable tax return.

D. 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.

E. Any credit not usable for the taxable year may be carried over for the next
five taxable years or until such credit is fully taken, whichever occurs first.
The amount of the credit allowed pursuant to this section shall not exceed the
tax imposed for such taxable year. No credit shall be carried back to a
preceding taxable year. If a taxpayer that is subject to the tax limitation
imposed pursuant to this subsection is allowed another credit pursuant to any
other section of this Code or has a credit carryover from a preceding taxable
year, such taxpayer shall be considered to have first utilized any credit
allowed that does not have a carryover provision, and then any credit that is
carried forward from a preceding taxable year, before using any credit allowed
pursuant to this section.

F. Notwithstanding the provisions of &#xA7; 58.1-3, the Department of Taxation
shall annually provide information to the Virginia Port Authority related to tax
credits issued pursuant to this section.

G. The Tax Commissioner shall issue guidelines that are necessary and desirable
to carry out the provisions of this section, including (i) the computation and
carryover of the credits provided under this section and (ii) the establishment
of criteria for international trade facilities. Such guidelines shall be exempt
from the Administrative Process Act (&#xA7; 2.2-4000 et seq.).

HISTORY: 2011, cc. 820, 861; 2012, cc. 846, 849; 2014, c. 423; 2016, c. 69;
2021, Sp. Sess. I, c. 373.