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2011 SESSION
11103230DBe it enacted by the General Assembly of Virginia:
1. That § 58.1-433.1 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-433.1. Virginia Coal Employment and Production Incentive Tax Credit.
A. For taxable years beginning on and after January 1, 2001, every electricity generator in the Commonwealth shall be allowed a three-dollar-per-ton credit against the tax imposed by § 58.1-400 or § 58.1-400.2 for each ton of coal purchased and consumed by such electricity generator, provided such coal was mined in Virginia as certified by such seller. Notwithstanding any other provision of law, no electricity generator shall be allowed more than a three-dollar-per-ton coal tax credit and shall be subject to all limitations set forth in § 58.1-400.2. In no event shall the credit allowed hereunder exceed the total amount of tax liability of such taxpayer. Any tax credit not usable for the taxable year may be carried over to the extent usable for the next 10 succeeding taxable years or until the full credit is utilized, whichever is sooner. For the purposes of the credit provided by this section, "electricity generator" means any person who produces electricity for self-consumption or for sale. However, a cogenerator, as defined in § 58.1-2600, shall not be allowed to claim the credit provided by this section and the credit provided by § 58.1-433 on the same ton of coal.
B. For each such ton of coal described in subsection A that is purchased on or after January 1, 2006, from any person with an economic interest in coal as defined under § 58.1-439.2, the $3-per-ton credit allowed under subsection A may be allocated between such electricity generator and such person with an economic interest in coal. The allocation of the $3-per-ton credit may be provided in the contract between such parties for the sale of such coal. Such allocation may be amended by the execution of a written instrument by the parties prior to December 31 of the year of purchase of such coal. Such contracts and written instruments shall be subject to audit by the Department of Taxation to ensure the proper application of credits.
In no case shall the credit allocated for each such ton of coal among such electricity generators and such persons with an economic interest in coal exceed $3 per ton.
All credits earned on or after January 1, 2006, which are
allocated to persons with an economic interest in coal as provided under this
subsection may be used as tax credits by such persons against the tax imposed
by § 58.1-400 and any other tax imposed by the Commonwealth. If the credits
earned on or after January 1, 2006, and prior to July 1, 2011,
exceed the state tax liability for the applicable taxable year of such person
with an economic interest in coal, the excess shall be redeemable by the Tax Commissioner
as set forth in subsection D of § 58.1-439.2,
provided that the ability of persons with an
economic interest in coal to redeem with
the Tax Commissioner credits received
pursuant to an allocation under this section
shall expire for credits earned under
this section on or after July
1, 2016.