                                 CODE OF VIRGINIA

DONATIONS OF PROFESSIONAL SERVICES (§ 58.1-439.22)

A. A sole proprietor, partnership or limited liability company engaged in the
business of providing professional services shall be eligible for a tax credit
under this article based on the time spent by the proprietor or a partner or
member, respectively, who renders professional services to a program that has
received an allocation of tax credits from the Superintendent of Public
Instruction or the Commissioner of Social Services. The value of the
professional services, for purposes of determining the amount of the tax credit
allowable, rendered by the proprietor or a partner or member to an approved
program shall not exceed the lesser of (i) the reasonable cost for similar
services from other providers or (ii) $125 per hour.

B. A business firm shall be eligible for a tax credit under this article for the
time spent by a salaried employee who renders professional services to an
approved program. The value of the professional services, for purposes of
determining the amount of tax credit allowed to a business firm for time spent
by its salaried employee in rendering professional services to an approved
project, shall be equal to the salary that such employee was actually paid for
the period of time that such employee rendered professional services to the
approved program.

C. Notwithstanding any provision of this article limiting eligibility for tax
credits to business firms, physicians, chiropractors, dentists, nurses, advanced
practice registered nurses, physician assistants, optometrists, dental
hygienists, professional counselors, clinical social workers, clinical
psychologists, marriage and family therapists, physical therapists, and
pharmacists licensed pursuant to Title 54.1 who provide health care services
within the scope of their licensure, without charge, to patients of a clinic
operated by an organization that has received an allocation of tax credits from
the Commissioner of Social Services and such clinic is organized in whole or in
part for the delivery of health care services without charge, or to a clinic
operated not for profit providing health care services for charges not exceeding
those set forth in a scale prescribed by the State Board of Health pursuant to
&#xA7; 32.1-11 for charges to be paid by persons based upon ability to pay,
shall be eligible for a tax credit pursuant to &#xA7; 58.1-439.21 based on the
time spent in providing health care services to patients of such clinic,
regardless of where the services are delivered.
			Notwithstanding any provision of this article limiting eligibility for tax
credits, a pharmacist who donates pharmaceutical services to patients of a free
clinic, which clinic is an organization exempt from taxation under the
provisions of &#xA7; 501(c)(3) of the Internal Revenue Code, with such
pharmaceutical services performed at the direction of an approved neighborhood
organization that has received an allocation of tax credits from the
Commissioner of Social Services, shall be eligible for tax credits under this
article based on the time spent in providing such pharmaceutical services,
regardless of where the services are delivered.
			Notwithstanding any provision of this article limiting eligibility for tax
credits, mediators certified pursuant to guidelines promulgated by the Judicial
Council of Virginia who provide services within the scope of such certification,
without charge, at the direction of an approved neighborhood organization that
provides court-referred mediation services and that has received an allocation
of tax credits from the Commissioner of Social Services shall be eligible for
tax credits under this article based on the time spent in providing such
mediation services, regardless of where the services are delivered.
			The value of such services, for purposes of determining the amount of the tax
credit allowable, rendered by the physician, chiropractor, dentist, nurse,
advanced practice registered nurse, physician assistant, optometrist, dental
hygienist, professional counselor, clinical social worker, clinical
psychologist, marriage and family therapist, physical therapist, pharmacist, or
mediator shall not exceed the lesser of (i) the reasonable cost for similar
services from other providers or (ii) $125 per hour.

D. Notwithstanding any provision of this article limiting eligibility for tax
credits and for tax credit allocations beginning with fiscal year 2015-2016, a
physician specialist who donates specialty medical services to patients referred
from an approved neighborhood organization (i) that has received an allocation
of tax credits from the Commissioner of Social Services, (ii) whose sole purpose
is to provide specialty medical referral services to patients of participating
clinics or federally qualified health centers, and (iii) that is exempt from
taxation under the provisions of &#xA7; 501(c)(3) of the Internal Revenue Code
shall be eligible for tax credits under this article issued to such organization
regardless of where the specialty medical services are delivered.
			The value of such services, for purposes of determining the amount of tax
credit allowable, rendered by the physician specialist shall not exceed the
lesser of (a) the reasonable cost for similar services from other providers or
(b) $125 per hour.

HISTORY: 1981, c. 629, § 63.1-325; 1982, c. 178; 1984, c. 720; 1997, cc. 229,
640; 1998, c. 432; 1999, cc. 894, 917; 2002, cc. 103, 747, § 63.2-2004; 2003,
c. 186; 2004, cc. 183, 657, 725; 2008, c. 585; 2009, c. 851; 2011, c. 132; 2012,
c. 596; 2015, c. 153; 2023, c. 183.