Virginia Corporate Income Tax International Trade Facility Tax Credit

The Virginia Department of Taxation issued guidelines relating to the international trade facility tax credit. This is an income tax credit for either capital investment in an “international trade facility” or increasing jobs related to such facility. The amount of the credit is equal to either $3,000 per qualified full-time employee that results from increased qualified trade activities by the taxpayer or 2% of the capital investment made by the taxpayer to facilitate the increased qualified trade activities. The guidelines discuss: the requirements for an international trade facility; the criteria for qualified full-time employees; related party rules; the criteria for capital investments; the computation and carryover of credits; the recapture of certain credits; the treatment of affiliated companies; the treatment of international trade facilities in tobacco-dependent localities; and the administration of the credit. Various examples are provided. The guidelines do not constitute formal rulemaking and therefore do not have the force and effect of law or regulation. (Virginia Public Document Ruling 12-45, 04/17/2012)