VIRGINIA LAW PORTAL

• Code of Virginia
• Virginia Administrative Code
• Constitution of Virginia
• Charters
• Authorities
• Compacts
• Uncodified Acts
• RIS Users (account required)

SEARCHABLE DATABASES

• Bills & Resolutions
  session legislation
• Bill Summaries
  session summaries
• Reports to the General Assembly
  House and Senate documents
• Legislative Liaisons
  State agency contacts

ACROSS SESSIONS

• Subject Index: Since 1995
• Bills & Resolutions: Since 1994
• Summaries: Since 1994

Developed and maintained by the Division of Legislative Automated Systems.

2001 SESSION

• history | hilite | pdf | print version

014330544
SENATE BILL NO. 1004 Offered January 10, 2001 Prefiled January 9, 2001 A BILL to amend and reenact § 58.1-439.11 of the Code of Virginia, relating to employees with disabilities tax credit; training of persons with disabilities tax credit. ----------
Patrons-- Ticer, Byrne, Couric, Lucas, Maxwell, Miller, Y.B., Potts and Puller; Delegates: Albo, Brink, Plum and Watts
---------- Referred to Committee on Finance ----------

Be it enacted by the General Assembly of Virginia:

1. That § 58.1-439.11 of the Code of Virginia is amended and reenacted as follows:

§ 58.1-439.11. Employees with disabilities tax credit; training of persons with disabilities tax credit.

A. As used in this section, unless the context clearly requires otherwise:

"Qualified employee" means an otherwise qualified person with a disability who has completed or is completing rehabilitative services from the Department of Rehabilitative Services, the Department for the Visually Handicapped or the U.S. Department of Veterans Affairs. An otherwise qualified person with a disability (i) shall not be a relative of any owner or the employer claiming the credit and (ii) shall not own, directly or indirectly, more than five percent in value of the outstanding stock of a corporation claiming the credit. As used herein, "relative" means a spouse, child, grandchild, parent or sibling of an owner or employer, and "owner" means, in the case of a corporation, any person who owns five percent or more of the corporation's stock.

"Qualified worker training programs" means educating or training a qualified employee in a field of high technology, including but not limited to biotechnology, bioinformatics, computer programming, engineering, electronics or other technology field as the Secretary of Technology so certifies pursuant to subsection F, so that the qualified employee can fill a job in such field.

"Wages" means wages, within the meaning of § 51 (c) (1), (2) and (3) of the Internal Revenue Code without regard to § 51 (c) (4) of the Internal Revenue Code, that are paid by an employer to an employee for services performed in the employer's trade or business.

B. Except as provided in subsection D of this section, an employer may claim a tax credit in the amounts determined under subsection C of this section for the wages of a qualified employee and for the cost of qualified worker training that are paid in the taxable year for which the employer claims the credit. The same tax credit shall not be applied more than once against different taxes by the same taxpayer.

C. For taxable years beginning on and after January 1, 1999, but before December 31, 2002, an An employer shall be allowed a credit against the taxes imposed by Articles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360 et seq.), and 10 (§ 58.1-400 et seq.) of Chapter 3; Chapter 12 (§ 58.1-1200 et seq.); Article 1 (§ 58.1-2500 et seq.) of Chapter 25; or Article 2 (§ 58.1-2620 et seq.) of Chapter 26 of this title in the following amounts:

1. For taxable years beginning on and after January 1, 1999, but before December 31, 2005, an amount equal to twenty percent of the first $6,000 of wages paid annually to each qualified employee during the first two taxable years of such employee's employment; and

2. For taxable years beginning on and after January 1, 2001, but before December 31, 2005, an amount equal to the actual cost of qualified worker training programs the employer paid for in that taxable year.

D. An employer shall not claim the credit allowed under this section for a qualified employee who is on strike or for whom the employer simultaneously receives federal or state employment training benefits. Furthermore, the credit allowed under this section shall be based on actual wages paid during the applicable taxable year.

E. 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.

F. 1. An employer shall be entitled to the credit granted under this section subdivision C. 1. only for those qualified employees who have been certified as otherwise qualified persons with disabilities to the Department of Taxation by the Department of Rehabilitative Services, the Department for the Visually Handicapped or the U.S. Department of Veterans Affairs. The Department of Rehabilitative Services, the Department for the Visually Handicapped or the U.S. Department of Veterans Affairs shall review requests for certification for each qualified employee submitted by employers and shall advise the Tax Commissioner whether an employee qualifies.

2. An employer shall be entitled to the credit granted under subdivision C. 2. only for those qualified worker retraining programs that have been certified as otherwise qualified worker retraining programs by the Secretary of Technology. The Secretary of Technology shall review requests for certification for qualified worker retraining programs submitted by employers and shall advise the Tax Commissioner whether a worker retraining program qualifies.

3. The Tax Commissioner shall promulgate regulations, in accordance with the Administrative Process Act (§ 9-6.14:1 et seq.), establishing procedures for claiming the credit provided by this section. The Department of Rehabilitative Services, the Department for the Visually Handicapped or the U.S. Department of Veterans Affairs shall review requests for certification submitted by employers and shall advise the Tax Commissioner whether an employee qualifies.

G. 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 an 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.

H. No employer shall be eligible to claim a credit under this section subdivision C. 1. if the employer is claiming a tax credit for the same employee under § 58.1-439. To the extent that a credit is allowed for qualified worker training programs and related expenses under subdivision C. 2. for a taxable year, such expenses shall not serve as the basis for claiming any other credit or grant provided under the Code of Virginia.

I. The Tax Commissioner shall report annually to the Chairmen of the House Finance and Senate Finance Committees on the status and implementation of the credit credits established by this section, including certifications for otherwise qualified persons with disabilities and for otherwise qualified worker retraining programs.