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2004 SESSION
041808228Be it enacted by the General Assembly of Virginia:
1. That § 58.1-439.4 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-439.4. Day-care facility investment tax credit.
A. For taxable years beginning on and after January 1, 1997, any taxpayer shall
be allowed a credit against the taxes imposed by § 58.1-320 or § 58.1-400 in an
amount equal to twenty-five percent of all expenditures paid or incurred by such taxpayer
in such taxable year for (i) planning, site preparation, construction,
renovation, or acquisition of facilities for the purpose of establishing a child day-care
facility to be used primarily by the children of such taxpayer's employees,
and; (ii) equipment installed for permanent use within or
immediately adjacent to such facility, including kitchen appliances, to the extent
that such equipment or appliances are necessary in the use of such facility for
purposes of child day-care; or (iii) for taxable years beginning on and after
January 1, 2005, annual operating expenses for such child day-care facilities;
however, the amount of credit allowed to any taxpayer under this section shall not
exceed $25,000. If two or more taxpayers share in the cost of establishing or
operating the child day-care facility for the children of their employees, each
such taxpayer shall be allowed such credit in relation to the respective share paid
or incurred by such taxpayer, of the total expenditures for the facility in such
taxable year.
B. The credits provided under this section shall be allowed only if (i) the
child day-care facility shall be operated under the authority of a license
issued by the Commissioner of Social Services pursuant to § 63.2-1701, and (ii)
an application for a building permit for the facility is made after July 1,
1996, and (iii) the Tax Commissioner approves a taxpayer's application for a
credit. Proper applications submitted to the Department for the credit shall be
approved in the order received. For each application approved for credit it
shall be assumed that the amount of the credit will be $25,000, and the amount
of the credit will be taken in the fiscal year in which the application is
approved and the following two fiscal years. Approval of applications shall be
limited to those that are assumed to result in no more than $100,000 of credits
in any fiscal year based on the assumptions set forth in this subsection.
C. Any tax credit not usable for the taxable year may be carried over to the extent usable for the next three taxable years; however, the balance of a credit shall not be claimed for any succeeding taxable year in which the child day-care facility is operated for purposes of child day-care for less than six months.
D. 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.