                                 CODE OF VIRGINIA

DONATIONS BY INDIVIDUALS (§ 58.1-439.24)

For purposes of this section, the term &#8220;individual&#8221; means the same
as that term is defined in § 58.1-302, but excluding any individual included in
the definition of a &#8220;business firm&#8221; as such term is defined in §
58.1-439.18.

A. Notwithstanding any provision of this article limiting eligibility for tax
credits, an individual making a monetary donation or a donation of marketable
securities to a neighborhood organization approved under this article shall be
eligible for a credit against taxes imposed by &#xA7; 58.1-320 as provided in
this section.

B. Notwithstanding any provision of this article specifying the amount of a tax
credit, a tax credit issued to an individual making a monetary donation or a
donation of marketable securities to an approved project shall be equal to 65
percent of the value of such donation; however, tax credits (i) shall not be
issued for any donation made in the taxable year with a value of less than $500
and (ii) shall be issued only for the first $125,000 in value of donations made
by the individual during the taxable year. The maximum aggregate donations of
$125,000 for the taxable year for which tax credits may be issued and the
minimum required donation of $500 shall apply on an individual basis.

C. An individual shall be eligible for a tax credit under this section only to
the extent that sufficient tax credits allocated to the neighborhood
organization approved under this article are available. Notwithstanding that
this section establishes a tax credit of 65 percent of the value of the
qualified donation, an individual may by written agreement accept a lesser tax
credit percentage from a neighborhood organization for any otherwise qualified
donation he has made.

D. The amount of credit allowed pursuant to this section, if such credit has
been issued by the Superintendent of Public Instruction or the Commissioner of
Social Services, shall not exceed the tax imposed pursuant to &#xA7; 58.1-320
for such taxable year. Any credit not usable for the taxable year may be carried
over for credit against the individual&#8217;s income taxes until the earlier of
(i) the full amount of the credit is used or (ii) the expiration of the fifth
taxable year after the taxable year in which the tax credit has been issued to
such individual. If an individual that is subject to the tax limitation imposed
pursuant to this subsection is allowed another credit pursuant to any other
section of the Code of Virginia, or has a credit carryover from a preceding
taxable year, such individual 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, prior to the utilization
of any credit allowed pursuant to this section.

E. A tax credit shall be issued by the Superintendent of Public Instruction or
the Commissioner of Social Services to an individual only 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 individual 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 an individual accepts a tax credit of less
than 65 percent for a donation.

HISTORY: 2000, c. 946, § 63.1-325.2; 2001, cc. 292, 300; 2002, cc. 563, 747, §
63.2-2006; 2005, c. 82; 2008, cc. 463, 585; 2009, c. 851; 2012, cc. 731, 842;
2013, cc. 713, 716; 2015, c. 56.