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2015 SESSION

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SB 1161 Coal tax; limits amount of credit that may be claimed for coal employment and production incentive.

Introduced by: Charles J. Colgan | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Coal tax credits. Limits the aggregate amount of credits that may be allocated or claimed for the coal employment and production incentive tax credit to $7.5 million. An electricity generator must file an application with the Department of Taxation each year to determine the amount of credits that it may claim or allocate, including credits earned in prior taxable years. If the total amount of credits earned in a taxable year exceeds $7.5 million, the Department of Taxation shall apportion the credits on a pro rata basis. The bill also extends the sunset date of the coalfield employment enhancement tax credit through taxable year 2019. This bill is identical to HB 1879.

SUMMARY AS PASSED SENATE:

Coal tax credits. Limits the amount of the credit that may be claimed for the coal employment and production incentive to $500,000 per return. The bill also reduces the coal employment and production incentive tax credit from $3 per ton of coal purchased and consumed by an electricity generator to $2 per ton. The bill also limits the credits that may be transferred by an electricity generator to the amount of credits allocated by that electricity generator in taxable year 2012.

Any unused tax credits may be carried forward for 5 taxable years. However, any coal employment and production incentive tax credit earned prior to January 1, 2015, may be carried forward for the 12 taxable years following the year in which the credit was earned.

The provisions of the bill would become effective for taxable years beginning on and after January 1, 2015.

SUMMARY AS INTRODUCED:

Coal tax credits. Limits the amount of the credit that may be claimed for each of the coal employment and production incentive and coalfield employment enhancement tax credits to $500,000 per return. The $500,000 limitation for the coalfield employment enhancement tax credit applies to such credits claimed on the tax return or redeemed with the Tax Commissioner. The bill also reduces the coal employment and production incentive tax credit from $3 per ton of coal purchased and consumed by an electricity generator to $2 per ton.

Any unused tax credits may be carried forward for 5 taxable years. However, any coal employment and production incentive tax credit earned prior to January 1, 2015, may be carried forward for the 12 taxable years following the year in which the credit was earned.

The provisions of the bill would become effective for taxable years beginning on and after January 1, 2015.