GOVERNOR'S RECOMMENDATION

1. Page 1, enrolled, line 3 of the title, after 59.1-280.1

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and

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, 59.1-280.2,

2. Page 1, enrolled, line 4 of the title, after to

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repeal

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amend and reenact

3. Page 1, enrolled, line 3 of the first enactment clause, after 59.1-280.1

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and

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, 59.1-280.2,

4. Page 2, enrolled, the fifteenth line, after consisting of

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at least

5. Page 3, enrolled, the tenth line of subsection A of § 59.1-280, after year.

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However, if the qualified business firm makes qualified zone investments (as defined in subsection K of § 59.1-280.1) in excess of $25 million and such qualified zone investments result in the creation of at least 100 full-time positions, the percentage amounts of the income tax credits available to such qualified business firms under this subsection shall be determined by agreement between the Department and the qualified business firm, provided such percentage amounts shall not exceed the percentages provided for other qualified business firms as set forth in the preceding sentence.

6. Page 3, enrolled, the eleventh line of subsection A of § 59.1-280, after firms

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(other than firms that are granted a tax credit under subsection J of § 59.1-280.1)

7. Page 3, enrolled, the twelfth line of subsection A of § 59.1-280, after under

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subsection B of

8. Page 3, enrolled, the twelfth line of subsection A of § 59.1-280, after dollars.

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However, tax credits granted under this section to business firms designated as qualified business firms prior to July 1, 1995, shall not be subject to inclusion in such five-million-dollar limitation.

9. Page 4, enrolled, at the beginning of the third line of subsection B of § 59.1-280.1,

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per project

10. Page 4, enrolled, the third line of subsection B of § 59.1-280.1, after $125,000

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in any five-year period

11. Page 4, enrolled, the first line of subdivision 1 of subsection E of § 59.1-280.1, after subsection

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E

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F

12. Page 5, enrolled, the first line of subsection H of § 59.1-280.1, after to

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subsection B of

13. Page 5, enrolled, the second line of subsection H of § 59.1-280.1, after to

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subsection B of

14. Page 5, enrolled, the second line of subsection H of § 59.1-280.1, after taxpayer

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is eligible to apply for such refund only once every five years

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shall not be eligible to receive more than $125,000 of tax credits under subsection B of this section within a five-year period

15. Page 5, enrolled, the third line of subsection J of § 59.1-280.1, after resident

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may claim

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shall be eligible for

16. Page 5, enrolled, the third line of subsection J of § 59.1-280.1, after credit

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equaling

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in an amount of up to

17. Page 5, enrolled, the fourth line of subsection J of § 59.1-280.1, after section.

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The percentage amount of the investment tax credit granted to a qualified zone resident shall be determined by agreement between the Department and the qualified zone resident, provided such percentage amount shall not exceed five percent.

18. Page 5, enrolled, the fifth line of subsection J of § 59.1-280.1, after tax

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credit

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credits

19. Page 5, enrolled, the fifth line of subsection J of § 59.1-280.1, after under

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this subsection

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subsection J, and to qualified business firms under § 59.1-280 for firms granted a tax credit under subsection J of this section.

20. Page 5, enrolled, the sixth line of subsection J of § 59.1-280.1, after dollars.

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The percentage amounts of the business income tax credit provided in § 59.1-280 which may be granted to a qualified business firm that is eligible for an investment tax credit under this subsection shall be determined by agreement between the Department and the qualified zone resident, provided such percentage amounts shall not exceed the percentages provided in § 59.1-280.

21. Page 5, enrolled, the sixth line of subsection J of § 59.1-280.1, after The

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investment tax

22. Page 5, enrolled, after subsection M of § 59.1-280.1,

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§ 59.1-280.2. Policies and procedures for reservation and allocation of tax credits.

A. Qualified business firms and qualified zone residents shall be eligible to receive any tax credit provided under § 59.1-280 or § 59.1-280.1 in any year if, and to the extent, they reserve the tax credit through the Department.

B. In order to ensure that the limited amounts of tax credits available under §§ 59.1-280 and 59.1-280.1 in any year are not oversubscribed and are allocated in an orderly and equitable manner, the Board of Housing and Community Development shall establish policies and procedures for the reservation of tax credits by qualified business firms and qualified zone residents. Such policies and procedures shall provide (i) requirements for applying for reservations of tax credits; (ii) a system for allocating available amount of tax credits among eligible applicants; (iii) for carrying forward eligibility for tax credits to subsequent periods if an applicant does not obtain a reservation of the tax credit or any portion thereof for which he is eligible in any year as the result of the oversubscription of tax credits; (iv) priorities for allocating reservations to applicants whose eligibility for reservations of tax credits was carried forward from a preceding year but who did not receive a credit to which they were otherwise eligible; and (v) for the issuance of reservations to eligible applicants who did not initially receive a reservation in any year, if the Department determines that tax credit reservations were issued to other applicants who did not use, or were determined to be wholly or partially ineligible for, a reserved tax credit.

C. The Department shall apply such policies and procedures in approving applications for reservations of such tax credits to qualified business firms and qualified zone residents.

D. Actions of the Department relating to the approval or denial of applications for reservations for tax credits under § 59.1-280 or § 59.1-280.1 shall be exempt from the provisions of the Administrative Process Act pursuant to subdivision B 4 of § 9-6.14:4.1.

23. Page 7, enrolled, the first line, after in §

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59.1-282.4

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59.1-282.2

24. Page 7, enrolled, the fifth line of subsection B of § 59.1-282.2, after year;

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(ii) next, for grants to business firms which in the preceding year received a grant pursuant to § 59.1-282.3 and continue to be eligible for a grant pursuant to such section;

25. Page 7, enrolled, the seventh line of subsection B of § 59.1-282.2, after and

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(iii)

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(ii)

26. Page 7, enrolled, the third line of subsection D of § 59.1-282.2, after in §

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59.1-282.5

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59.1-282.3

27. Page 8, enrolled, the first line of the second enactment clause, after is

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repealed.

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amended and reenacted as follows:

2. That the provisions of this act shall apply to qualified business firms which begin operations within an enterprise zone on or after July 1, 1992, or which are first designated as qualified business firms on or after July 1, 1995.

28. Page 8, enrolled, after the second enactment clause,

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3. That the Board of Housing and Community Development shall establish the policies and procedures required pursuant to subsection B of § 59.1-280.2 on or before July 1, 1995, which shall be the effective date of such policies and procedures. The policies and procedures, which are necessitated by an emergency situation, shall be deemed to be emergency regulations as set forth in subdivision C 5 of § 9-6.14:4.1.