                                 CODE OF VIRGINIA

VIRGINIA PORT VOLUME INCREASE TAX CREDIT (§ 58.1-439.12:10)

A. As used in this section, unless the context indicates otherwise:
			&#8220;Agricultural entity&#8221; means a person engaged in growing or
producing wheat, grains, fruits, nuts, crops; tobacco, nursery, or floral
products; forestry products excluding raw wood fiber or wood fiber processed or
manufactured for use as fuel for the generation of electricity; or seafood,
meat, dairy, or poultry products.
			&#8220;Base year port cargo volume&#8221; means the total amount of (i) net
tons of noncontainerized cargo, (ii) TEUs of cargo, or (iii) units of
roll-on/roll-off cargo actually transported by way of a waterborne ship or
vehicle through a port facility during the period from (i) January 1, 2010,
through December 31, 2010, for manufacturing-related entities or (ii) January 1,
2012, through December 31, 2012, for agricultural entities and mineral and gas
entities. Base year port cargo volume must be at least 75 net tons of
noncontainerized cargo, 10 loaded TEUs, or 10 units of roll-on/roll-off cargo
for a taxpayer to be eligible for the credits provided in this section. For a
taxpayer that does not ship that amount in the year ending December 31, 2010, or
December 31, 2012, as applicable, including a taxpayer who locates in Virginia
after such periods, its base cargo volume will be measured by the initial
January 1 through December 31 calendar year in which it meets the requirements
of 75 net tons of noncontainerized cargo, 10 loaded TEUs, or 10 units of
roll-on/roll-off cargo. Base year port cargo volume must be recalculated each
calendar year after the initial base year.
			&#8220;Major facility&#8221; means a new facility to be located in Virginia
that is projected to import or export cargo through a port in excess of 25,000
TEUs in its first calendar year.
			&#8220;Manufacturing-related entity&#8221; means a person engaged in the
manufacturing of goods or the distribution of manufactured goods.
			&#8220;Mineral and gas entity&#8221; means a person engaged in severing
minerals or gases from the earth.
			&#8220;Port cargo volume&#8221; means the total amount of net tons of
noncontainerized cargo, net units of roll-on/roll-off cargo, or containers
measured in TEUs of cargo transported by way of a waterborne ship or vehicle
through a port facility.
			&#8220;Port facility&#8221; means any publicly or privately owned facility
located within the Commonwealth through which cargo is transported by way of a
waterborne ship or vehicle to or from destinations outside the Commonwealth and
which handles cargo owned by third parties in addition to cargo owned by the
port facility&#8217;s owner.
			&#8220;TEU&#8221; or &#8220;20-foot equivalent unit&#8221; means a volumetric
measure based on the size of a container that is 20 feet long by eight feet wide
by eight feet, six inches high.

B. 1. For taxable years beginning on and after January 1, 2011, but before
January 1, 2025, a taxpayer that is an agricultural entity,
manufacturing-related entity, or mineral and gas entity that uses port
facilities in the Commonwealth and increases its port cargo volume at these
facilities by a minimum of five percent in a single calendar year over its base
year port cargo volume is eligible to claim a credit against the tax levied
pursuant to §§ 58.1-320 and 58.1-400 in an amount determined by the Virginia
Port Authority. The Virginia Port Authority may waive the requirement that port
cargo volume be increased by a minimum of five percent over base year port cargo
volume for any taxpayer that qualifies as a major facility.

   2. Qualifying taxpayers that increase their port cargo volume by a minimum of
   five percent in a qualifying calendar year shall receive a $50 credit against
   the tax levied pursuant to &#xA7;&#xA7; 58.1-320 and 58.1-400 for each TEU,
   unit of roll-on/roll-off cargo, or 16 net tons of noncontainerized cargo, as
   applicable, above the base year port cargo volume. A qualifying taxpayer that
   is a major facility as defined in this section shall receive a $50 credit
   against the tax levied pursuant to &#xA7;&#xA7; 58.1-320 and 58.1-400 for each
   TEU, unit of roll-on/roll-off cargo, or 16 net tons of noncontainerized cargo,
   as applicable, transported through a port facility during the major
   facility&#8217;s first calendar year. A qualifying taxpayer may not receive
   more than $250,000 for each calendar year except as provided for in
   subdivision C 2. The maximum amount of credits allowed for all qualifying
   taxpayers pursuant to this section shall not exceed $3.2 million for each
   calendar year. The Virginia Port Authority shall allocate the credits pursuant
   to the provisions in subdivisions C 1 and C 2.

   3. If the credit exceeds the taxpayer&#8217;s tax liability for the taxable
   year, the excess amount may be carried forward and claimed against income
   taxes in the next five succeeding taxable years.

   4. The credit may be claimed by the taxpayer as provided in subdivision 1 only
   if the taxpayer owns the cargo at the time the port facilities are used.

C. 1. For every year in which a taxpayer claims the credit, the taxpayer shall
submit an application to the Virginia Port Authority by March 1 of the calendar
year after the calendar year in which the increase in port cargo volume occurs.
The taxpayer shall attach a schedule to the taxpayer&#8217;s application to the
Virginia Port Authority with the following information and any other information
requested by the Virginia Port Authority or the Department:
			a. A description of how the base year port cargo volume and the increase in
port cargo volume were determined;
			b. The amount of the base year port cargo volume;
			c. The amount of the increase in port cargo volume for the taxable year
stated both as a percentage increase and as a total increase in net tons of
noncontainerized cargo, TEUs of cargo, and units of roll-on/roll-off cargo, as
applicable, including information that demonstrates an increase in port cargo
volume in excess of the minimum amount required to claim the tax credits
pursuant to this section;
			d. Any tax credit utilized by the taxpayer in prior years; and
			e. The amount of tax credit carried over from prior years.

   2. If on March 15 of each year the $3.2 million amount of credit is not fully
   allocated among qualifying taxpayers, then those taxpayers who have been
   allocated a credit for the prior year shall be allowed a pro rata share of the
   remaining allocated credit up to $3.2 million. If on March 15 of each year,
   the cumulative amount of tax credits requested by qualifying taxpayers for the
   prior year exceeds $3.2 million, then the $3.2 million in credits shall be
   prorated among the qualifying taxpayers who requested the credit.

   3. The taxpayer shall claim the credit on its income tax return in a manner
   prescribed by the Department. The Department may require a copy of the
   certification form issued by the Virginia Port Authority be attached to the
   return or otherwise provided. Qualifying taxpayers may also claim the credit
   pursuant to &#xA7; 58.1-439.12:09 for the same containers, noncontainerized
   cargo, or roll-on/roll-off units of cargo for which a credit is claimed under
   this section provided such taxpayer meets the applicable criteria set forth
   therein.

D. 1. Any taxpayer holding a credit under this section may transfer unused but
otherwise allowable credit for use by another taxpayer on Virginia income tax
returns. A taxpayer who transfers any amount of credit under this section shall
file a notification of such transfer to the Department in accordance with
procedures and forms prescribed by the Tax Commissioner. The transferred credits
may be retroactively applied from the date such credits were originally issued,
and the transferee may file an amended return under this chapter to claim such
transferred credit for a prior tax year. However, nothing in this section shall
be construed to extend the statute of limitations for filing an amended return
under § 58.1-1823 or any other provision of law.

   2. No transfer of tax credits pursuant to the provisions of this subsection
   shall be allowed unless such transfer occurs within one calendar year of the
   credit holder earning such credit.

   3. Only tax credits issued in taxable years beginning on and after January 1,
   2018, but before January 1, 2025, shall be transferable pursuant to the
   provisions of this subsection.

E. Credits granted to a partnership, limited liability company, or electing
small business corporation (S corporation) shall be allocated to the individual
partners, members, or shareholders, respectively, in proportion to their
ownership interests in such business entities.

HISTORY: 2011, cc. 831, 872; 2012, cc. 846, 849; 2013, c. 744; 2014, c. 423;
2016, c. 69; 2019, c. 759; 2021, Sp. Sess. I, c. 373.