38.2-1709 - Tax write-offs of certificates of contributions.
§ 38.2-1709. Tax write-offs of certificates of contributions.
A. A member insurer shall have at its option the right to show a certificateof contribution as an asset in the form approved by the Commission pursuantto subsection H of § 38.2-1705 at the original face amount for the calendaryear of issuance. Such amount shall be amortized over the 10 calendar yearsfollowing the year the contribution was paid in amounts each equal to 10percent of the amount of the contribution.
B. The insurer may offset the amount of the certificate amortized in acalendar year as provided in subsection A. This amount shall be deducted fromthe premium tax liability incurred on business transacted in thisCommonwealth for that year. However, the Association shall diligently pursueall rights available to it to recover its expenditures made in thefulfillment of its responsibilities under this chapter. If the Commissiondetermines after a hearing that the Association is not diligently pursuingavailable measures of recovery, contributing insurers will not be able tooffset amounts amortized during the period that the Commission determinesthat the Association has not been diligently pursuing available measures ofrecovery.
C. Any sums for which a certificate of contribution has been issued that havebeen (i) amortized by contributing insurers and offset against premium taxesas provided in subsection B and (ii) subsequently refunded pursuant tosubsection F of § 38.2-1705 shall be paid to the Commission and depositedwith the State Treasurer for credit to the general fund of this Commonwealth.
D. The amount of any credit against premium taxes provided for in thissection for an insurer shall be reduced by the amount of reduction in federalincome taxes for any deduction claimed by the insurer for an assessment paidpursuant to this chapter.
(1976, c. 330, § 38.1-482.27; 1986, c. 562; 1987, cc. 565, 655; 1991, c. 371;1997, c. 160; 2010, c. 510.)