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2005 SESSION

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SB 537 Income tax, corporate; credit against cigarettes manufactured and exported to a foreign country.

Introduced by: Walter A. Stosch | all patrons    ...    notes | add to my profiles

SUMMARY AS PASSED SENATE: (all summaries)

Corporate income tax; credit for cigarettes manufactured and exported. Provides a credit against corporate income taxes for the number of cigarettes manufactured by a corporation, which are also exported by the corporation to a foreign country. The bill establishes taxable year 2004 as a base year for the number of cigarettes exported. In future taxable years, the credit is computed by comparing the actual number of cigarettes exported by the manufacturer in the relevant taxable year with the number of cigarettes it exported in taxable year 2004. The credit per cigarette will vary based upon this comparison. No credit will be granted if the number of cigarettes exported is less than 50 percent of the number exported in taxable year 2004. In cases where the number of cigarettes exported in a taxable year is 50 percent or more of the number exported in 2004, the credit for the relevant taxable year will range from $.20 per 1,000 cigarettes exported up to $.40 per 1,000 cigarettes exported. The maximum allowable credit to any corporation in a taxable year is the lesser of $6 million or 50 percent of the corporation's income tax liability. The total amount of credit that may be taken by all eligible corporations for any fiscal year is capped at $6 million.


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