                                 CODE OF VIRGINIA

TAX CREDIT FOR CERTAIN EMPLOYERS HIRING RECIPIENTS OF TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES (§ 58.1-439.9)

A. As used in this section:
			&#8220;Qualified business employer&#8221; means an employer whose business
employed not more than 100 employees at the time that the employer first hired a
qualified employee.
			&#8220;Qualified employee&#8221; means an employee who is a Virginia resident
and is a recipient of Temporary Assistance for Needy Families (TANF) in
accordance with the provisions of Chapter 6 (&#xA7; 63.2-600 et seq.) of Title
63.2.

B. For taxable years beginning on and after January 1, 1999, a qualified
business employer 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.) of Chapter 3 of this title in an amount equal to five
percent of the annual salary actually paid during the taxable year to a
qualified employee. However, the annual amount of the credit shall not exceed
$750 per qualified employee. Qualified business employers entitled to the credit
pursuant to this section shall provide written evidence, satisfactory to the Tax
Commissioner, of employing such qualified employee for the taxable year in which
the credit is claimed.

C. 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.

D. Any credit not usable for the taxable year may be carried over for the next
three taxable years. The amount of 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 qualified business employer 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 employer shall be considered to
have first utilized any credit allowed which does not have a carryover
provision, and then any credit which is carried forward from a preceding taxable
year, prior to the utilization of any credit allowed pursuant to this section.

E. The amount of tax credits available under this section in any fiscal year
shall not exceed the amount appropriated for such year as provided in the
general appropriation act.

F. The State Board of Social Services shall promulgate regulations in accordance
with the Administrative Process Act (&#xA7; 2.2-4000 et seq.) establishing
procedures for claiming the tax credit provided by this section.

HISTORY: 1998, c. 486; 2002, c. 747.