Virginia Enterprise Zone Credit - Individual Tax and Instructions

Enterprise Zone Credit - Individual Tax and Instructions
Form 301 Individual
VIRGINIA

Form
301
INDIVIDUAL TAX

ENTERPRISE ZONE CREDIT
INDIVIDUAL TAX
Attach this form to your return

	 Name(s) as shown on return or form
	
  Social Security Number/FEIN	

	 20 _ __

	 Qualification year
	 j	 1st year	
	 j	 2nd year	
	 j	 3rd year	
	 j	 4th year	
	 j	 5th year	

j	 6th year
j	 7th year
j	 8th year
j	 9th year
j	 10th year

*VAI301110000*

Zone Location Code

v

	 (1)	 Total tax due . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (1)
	 (2)	 Qualified business firm income. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (2)
	 (3)	 Percentage of business done within the enterprise zone . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (3)	

%

	 (4)	 Income attributable to enterprise zone activity (Line 2 multiplied by Line 3). .  .  .  .  .  . (4)
	

Total	

Zone

	 (5)	 Percentage of enterprise zone income to total income. .  .  .  .  . (5)	

%

	 (6)	 Tax attributable to enterprise zone activity (Line 1 multiplied by the percentage on Line 5). .  .  .  .  .  .  .  .  .  .  . (6)

v

FOR BUSINESSES QUALIFYING PRIOR TO JULY 1, 1995
General Tax Credit:
	 (7)	 Applicable percentage. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (7)	

%

	 (8)	 General tax credit (Line 6 multiplied by the percentage on Line 7). .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (8)

v

Unemployment Tax Credit:
	 (9)	 Current year unemployment tax credit (see instructions) . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (9)
	 (10)	 Carryover unemployment tax credit from prior years. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (10)
	 (11)	 Total unemployment tax credit available this year (add Line 9 and Line 10). .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (11)
	 (12)	 Tax attributable to enterprise zone activity, less any general tax credit (Line 6 less Line 8). .  .  .  .  .  .  .  .  .  . (12)
	 (13)	 Credit used this year (lesser of Line 11 or Line 12). .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (13)

v

	 (14)	 Credit carryover to subsequent year (subtract Line 13 from Line 11). .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (14)

v

FOR BUSINESSES QUALIFYING ON OR AFTER JULY 1, 1995
General Tax Credit:
	 (15)	 Applicable percentage (see instructions). .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (15)	

%

	 (16)	 Available credit (Line 6 multiplied by the percentage on Line 15). .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (16)
	 (17)	 Credit authorized by the Department of Housing and Community Development . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (17)
	 (18)	 General tax credit (enter the lesser of Line 16 or Line 17) . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (18)

v

Space Reserved for Future Use
	 (19)	
	 (20)	
	 (21)	
	 (22)	
	 (23)	
	 (24)	
Zone Investment Tax Credit:
	 (25)	 Zone investment tax credit negotiated with the Department of Housing and Community Development. .  .  .  . (25)
	 (26)	 Zone investment tax credit used in prior years . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (26)	
	 (27)	 Total zone investment tax credit available this year (subtract Line 26 from Line 25). .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (27)

v

	 (28)	 Credit authorized by the Department of Housing and Community Development . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (28)

v

	 (29)	 Lesser of Line 27 or Line 28 . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (29)
	 (30)	 Credit used this year (see instructions). .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (30)

v

	 (31)	 Credit carryover to subsequent year (subtract Line 30 from Line 27). .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (31)

v

Total Enterprise Zone Credit:
	 (32)	 Enter the total of all applicable Enterprise Zone Credits for this year (add Lines 8, 13, 18 and 30). .  .  .  . (32)
VA DEPT OF TAXATION	 2614145	

REV 12/10

*VAI301210000*
FORM 301 INSTRUCTIONS — INDIVIDUAL TAX
GENERAL INFORMATION: Enter the zone location code in the box
located at the top of the form. This code number can be obtained from the	
Certificate of Qualification from the Department of Housing and Community
Development.
The following rules apply when computing tax credits:
c		 Where a credit is limited to a percentage of the tax, the "tax" for this
purpose shall be the tax liability, less the credit for taxes paid to other
states.
c		 Other income tax credits should be claimed in the order in which they
provide the maximum benefit, regardless of the order shown on the
return.
c		 Claim only as much credit as can be used to offset tax liability and keep
accurate records of the carryover available for each credit.
LINE BY LINE INSTRUCTIONS:
(1)	 	 Enter the total tax (Line 17 from Form 760 or Line 19 from Form 760PY,
Line 4 from Form 770, or Line 19 from Form 763) less any credit claimed
for taxes paid to other states.
(2)	 	 Enter the amount of income derived from a qualified business firm
operating within an enterprise zone.  Sole proprietorships enter the
income reported on federal Schedule C.  Pass-Through Entities (S
corporation shareholders, partners, LLC owners, etc.) enter the
distributive share of income reported to them on federal Schedule K-1. 
Wages received from pass-through entities (a partnership, S corporation
or LLC, etc.) may not be included on this line.
(3)	 	 Enter the percentage of business done within the enterprise zone. 
Qualified business firms having taxable income from business activity
both inside and outside of an enterprise zone must allocate and apportion
on Schedule 500A (Form 500) their taxable income attributable to the
conduct of business according to Va. Code § 59.1-280(G). Schedule
500A  must be attached to Form 301. Owners of pass-through entities
should receive a Schedule 502A (Form 502) from the pass-through entity
completed for this purpose, and attach it to their Form 301.
(4)	 	 Multiply the amount on Line 2 by the percentage on Line 3 and enter
the result here and in the "Zone" column on Line 5. If all business was
conducted inside the zone, enter the amount from Line 2 in the "Zone"
column on Line 5.
(5)	 	 Enter Virginia adjusted gross income (Line 9 of Form 760, Line 10 of
Form 760PY, Line 9 from Form 763, or Line 3 of Form 770) in the "Total"
column and zone income from Form 301, Line 4 in the "Zone" column. 
Divide the "Zone" income by the "Total" income and enter the percentage
in the third column.
(6)	 	 Multiply Line 1 by the percentage on Line 5 and enter the result.
FOR BUSINESS QUALIFYING PRIOR TO JULY 1, 1995
General Tax Credit:
(7)	 	 Enter the applicable percentage corresponding to the qualification year
as follows:
	 	 Operations prior to July 1, 1992
	 	 (a) First tax year- 80%	
	
(c) Third tax year- 40%	
(b) Second tax year- 60%	 	
(d) Fourth and fifth tax years- 20%
	 	 Operations beginning on or after July 1, 1992
	 	 (a) First tax year - 80%	
	
	 	 (b) Second through tenth tax years- 60%
(8)	 	 Multiply the amount on Line 6 by the percentage on Line 7. This is your
current year general tax credit. Any unused tax credit in this category may not	
be applied to future tax years.
Unemployment Tax Credit:
(9)	 	 The unemployment tax credit amount is equal to the amount of state  
unemployment tax paid on employees within the enterprise zone
multiplied by 	t he applicable percentage.  The percentages are as
follows:
	 	 Operations prior to July 1, 1992
	 	 (a) First tax year- 80%	
	
(c) Third tax year- 40%	
(b) Second tax year- 60%	 	
(d) Fourth and fifth tax years- 20%
	 	 Operations beginning on or after July 1, 1992
	 	 (a) First tax year - 80%	
	
	 	 (b) Second through tenth tax years- 60%

(10)	 Enter the carryover amount from the prior year. Attach computation of
the carryover amount.
(11)		 Add Lines 9 and 10. This is the total unemployment tax credit available
for the year.
(12)	 Enter the remaining tax attributable to enterprise zone activity (Line 6
less Line 8).
(13)	 Credit used this year: Enter the amount on Line 11 or Line 12, whichever
is less.
(14)	 Credit carryover to subsequent years: Subtract the amount on Line 13
from the amount on Line 11.
FOR BUSINESSES QUALIFYING ON OR AFTER JULY 1, 1995
General Tax Credit:
(15)	 Enter the percentage authorized by the Department of Housing and
Community Development.
(16)	 Multiply the amount from Line 6 by the percentage on Line 15.
(17)	 Enter the amount of credit authorized by the Department of Housing
and Community Development.
(18)	 Enter the lesser of Line 16 or Line 17. This is your current year general tax
credit. Any unused tax credit may not be applied to future tax years.
Space Reserved for Future Use
(19)	
(20)	
(21)	
(22)	
(23)	
(24)	
Zone Investment Tax Credit:
(25)	 Enter the amount of zone investment tax credit negotiated with the
Department of Housing and Community Development.
(26)	 Enter the total zone investment tax credit used in prior years.
(27)	 Total zone investment tax credit: Subtract Line 26 from Line 25.
(28)	 Enter the credit amount authorized by the Department of Housing and
Community Development.
(29)	 Enter the amount from Line 27 or Line 28, whichever is less.
(30)	 Enter the amount from Line 29, not to exceed the individual tax liability
amount minus other credits claimed.  For Form 760, 760PY and 763
the total amount of credit cannot exceed the income tax reduced by the
amounts on Lines 8, 13 and 18 from this form and the total of other tax
credits taken. For Form 770, the total amount of credit cannot exceed
Form 770, Line 4 reduced by the amounts on Lines 8, 13 and 18 from
this form and the total of other credits taken.
(31)	 Credit carryover to subsequent year: Subtract the amount on Line 30
from the amount on Line 27.
(32)	 Total Enterprise Zone Credit: Enter the total of all applicable
Enterprise Zone credits for this year from Lines 8, 13, 18 and 30. 
Enter the total here and on Schedule CR, Part 2, Line 2A (Form 760,
760PY, 763) or for Form 770 filers, Line 5(f).
NOTE: When qualifying in more than one enterprise zone, complete a
separate Form 301 for each zone. Add the total credit amount from each
Form 301 and enter that amount on Schedule CR, Part 2, Line 2A (Form
760, 760PY, 763) or for Form 770 filers, Line 5(f) of the return.
For additional information , call (804) 367-8031 or write the Department
of Taxation, P.O. Box 1115, Richmond, VA 23218-1115. You can obtain
most Virginia tax forms from the Department of Taxation's website at
www.tax.virginia.gov.
For assistance contact
	
	
	
	

	
	
	
	

Virginia Department of Taxation
P. O. Box 1115	
Richmond, VA 23218-1115
(804) 367-8031
Tenemos servicios disponible en Español.