                                 CODE OF VIRGINIA

TAX CREDIT; AMOUNT; LIMITATION; CARRY OVER (§ 58.1-439.21)

A. The Superintendent of Public Instruction and the Commissioner of Social
Services shall certify to the Department of Taxation, or in the case of business
firms subject to a tax under Article 1 (&#xA7; 58.1-2500 et seq.) of Chapter 25
or Article 2 (&#xA7; 58.1-2620 et seq.) of Chapter 26, to the State Corporation
Commission, the applicability of the tax credit provided herein for a business
firm.

B. A business firm shall be eligible for 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.) of Chapter 3, 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, in an amount equal to 65 percent of the value
of the money, property, professional services, and contracting services donated
by the business firm during its taxable year to neighborhood organizations for
programs approved pursuant to &#xA7; 58.1-439.20. Notwithstanding any other law
and for purposes of this article, the value of a motor vehicle donated by a
business firm shall, in all cases, be such value as determined for federal
income tax purposes using the laws and regulations of the United States relating
to federal income taxes. No tax credit shall be granted for any donation made in
the taxable year with a value of less than $616.
			A business firm shall be eligible for a tax credit under this section only to
the extent that sufficient tax credits allocated to the neighborhood
organization for an approved project are available. Notwithstanding that this
section establishes a tax credit of 65 percent of the value of the qualified
donation, a business firm may by written agreement accept a lesser tax credit
percentage from a neighborhood organization for any otherwise qualified donation
it has made. No tax credit shall be granted to any business firm for donations
to a neighborhood organization providing job training or education for
individuals employed by the business firm. Any tax credit not usable for the
taxable year the donation was made may be carried over to the extent usable for
the next five succeeding taxable years or until the full credit has been
utilized, whichever is sooner. Credits granted to a partnership, electing small
business (Subchapter S) corporation, or limited liability company shall be
allocated to their individual partners, shareholders, or members, respectively,
in proportion to their ownership or interest in such business entities.

C. A tax credit shall be issued by the Superintendent of Public Instruction or
the Commissioner of Social Services to a business firm upon receipt of a
certification made by a neighborhood organization to whom tax credits were
allocated for an approved program pursuant to &#xA7; 58.1-439.20. The
certification shall identify the type and value of the donation received, the
business firm making the donation, and the tax credit percentage to be used in
determining the amount of the tax credit. The certification shall also include
any written agreement under which a business firm accepts a tax credit of less
than 65 percent for a donation.

HISTORY: 1981, c. 629, § 63.1-324; 1982, c. 178; 1984, c. 720; 1986, c. 407;
1989, c. 310; 1995, c. 279; 1996, c. 77; 1997, cc. 229, 640; 1999, cc. 890, 909;
2002, c. 747, § 63.2-2003; 2008, c. 585; 2009, c. 851; 2011, c. 370; 2012, cc.
731, 842; 2015, c. 56.