58.1-439.1 - Clean fuel vehicle and advanced cellulosic biofuels job creation tax credit.
§ 58.1-439.1. Clean fuel vehicle and advanced cellulosic biofuels jobcreation tax credit.
A. For purposes of this section:
"Advanced biofuel" means a fuel derived from any cellulose, hemicellulose,or lignin that is derived from renewable biomass or algae.
"Clean special fuel" means any product or energy source used to propel ahighway vehicle, the use of which, compared to conventional gasoline orreformulated gasoline, results in lower emissions of oxides of nitrogen,volatile organic compounds, carbon monoxide or particulates or anycombination thereof. The term includes compressed natural gas, liquefiednatural gas, liquefied petroleum gas, hydrogen, hythane (a combination ofcompressed natural gas and hydrogen), or electricity.
"Job" shall mean the full-time employment of an individual in Virginia by acorporation for at least 40 hours per week during at least 40 weeks duringthe calendar year whose primary work activity is related directly to any ofthe activities listed in subsection B.
"Vehicle" shall have the same meaning as provided in U.S. Internal RevenueCode §§ 179A and 30.
B. For taxable years beginning on or after January 1, 1996, through December31, 2011, a corporation shall be eligible for a credit against the tax leviedpursuant to § 58.1-400 equal to $700 for each job that is created in either(i) the manufacture of the major components of the energy storage, energysupply, or engine, motor, and power train mechanisms unique to a vehiclefueled by clean special fuels; (ii) the manufacture of components uniquelyused to convert vehicles designed to operate on gasoline or diesel fuel tooperate on clean special fuels or advanced biofuels; (iii) the conversion ofvehicles designed to operate on gasoline or diesel fuel to operate on cleanspecial fuels or advanced biofuels; (iv) the manufacture of vehicles designedto operate on clean special fuels; (v) the manufacture of components designedto produce, store, and dispense clean special fuels or advanced biofuels; or(vi) the production of advanced biofuels. The credit shall be allowed in thetaxable year in which the job is created and in each of the two succeedingyears in which the job is continued.
C. To qualify for the tax credit provided in subsection B of this section, acorporation must demonstrate (i) that a job was created during the taxableyear for which the credit is claimed or was continued from the previoustaxable year in which a credit was claimed and (ii) the employment level injobs defined in subsection A of this section in the taxable year for whichthe credit is first claimed has increased in comparison to the previoustaxable year.
D. Any tax credit not used in the taxable year of job creation orcontinuation may be carried over for credit against the corporation's incometax in the five succeeding taxable years until the total credit amount isused.
E. In case of a partnership or limited liability company, the credit shall beallocated to the corporate partners or corporate members in proportion totheir ownership or interest in the partnership or limited liability company.
F. A corporation shall not be eligible for a tax credit pursuant to thissection if such corporation is allowed a major business facility job taxcredit pursuant to § 58.1-439.
(1995, c. 365; 2006, c. 238; 2009, c. 730.)