Virginia Application for Barge and Rail Usage Tax Credit

Application for Barge and Rail Usage Tax Credit
Form BRU - Application for Barge and Rail Usage Tax Credit
Virginia
Form BRU

Application for Barge and
Rail Usage Tax Credit

Tax Year
_________

Submit this form by April 1.
This credit must be approved before being claimed on your return. See the instructions for details.
Your shipments must be validated by the Virginia Port Authority (VPA) before filing this form.
Business Name

FEIN or SSN

Trading As

Office Use Only

Street Address
City, State, ZIP Code

Email Address

Contact Name

Phone Number

Fax Number

Entity Type: (Check One)	

  Sole Proprietor	

  C Corporation	

  S Corporation	

	

 Partnership	

 LLC	

 Other ____________________________________

 Fiduciary

The Barge and Rail Usage Tax Credit is an income tax credit for the usage of barge and rail to move cargo containers throughout
the Commonwealth rather than using trucks or other motor vehicles on the Commonwealth’s highways. To qualify for this credit, an
international trade facility must have an ownership interest in the cargo and control the choice of transportation. The amount of
the credit is $25 per 20-foot equivalent unit (TEU), one unit of roll-on/roll-off cargo or 16 tons of noncontainerized cargo moved by barge
or rail.
To receive this credit, an international trade facility is required to apply to the Department. No more than $500,000 in tax credits can be
issued in any fiscal year. The Department will determine the allowable credit amount for the taxable year and provide a written certification
of the credit amount to each taxpayer. Taxpayers can claim this credit against the individual income tax, the corporate income tax, the tax
on estates and trusts, the bank franchise tax, the insurance premiums license tax, and the tax on public service corporations.
1.	 Do you have an ownership interest in the cargo AND control the choice of transportation for the cargo listed on Line 2?
 Yes	

–OR–	

  No, these containers do not qualify

See the instructions for Lines 2 and 3 to convert roll-on/roll-off cargo or
noncontainerized cargo to TEUs.

Barge

Rail

Combined
Total

2.	 Number of TEUs moved by barge or rail rather than by truck or other motor vehicle on
Virginia’s highways during the taxable year for which you are applying for the credit
(enclose validation summary from VPA).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
3.	 Number of TEUs moved by barge or rail rather than by truck or other motor vehicle on
Virginia’s highways during the taxable year prior to the year for which you are applying
for the credit (enclose validation summary from VPA). NOTE: If prior year combined
total TEUs are greater than current year, you do not qualify for the credit.. . . . . .
4.	 Subtract Combined Total of Line 3 from Combined Total of Line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.00

5.	 Amount of credit requested. Multiply Line 4 by $25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

Declaration: I (we) the undersigned declare, under the penalties provided by law, that this form (including any accompanying schedules, statements, and
enclosures) has been examined by me (us) and is, to the best of my (our) knowledge and belief, a true, correct, and complete application, made in good
faith pursuant to the income tax laws of the Commonwealth of Virginia.
Authorized Signature

Title

Printed Name

Phone Number

Email Address

Fax Number

Date

File Form BRU no later than April 1 for credits earned the preceding year.
Va. Dept. of Taxation  3101070  Rev. 08/23

Form BRU
Schedule A

Barge and Rail Usage
Tax Credit Schedule

Name as It Appears on Form BRU

Tax Year
___________
FEIN or SSN

•	

This Schedule is only for shipments made through non-VPA owned ports or other shipments not listed on the
validation summary from VPA.

•	

Every applicant must submit its VPA validation summaries (current/prior year). DO NOT INCLUDE ANY CONTAINERS
LISTED IN THE VALIDATION SUMMARY on Schedule A.

•	

Copies of Schedule A can be submitted if additional space is needed.
Date Cargo Container
Shipped

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13
14.

Container
Size

Container
Number

Bill of Lading #

Terminal

Instructions for Form BRU
Application for Barge and Rail Usage Tax Credit
General Information

Instructions for Lines 2 and 3

An income tax credit is allowed for transporting cargo
containers by barge and rail. The amount of the credit
is $25 per 20-foot equivalent unit (TEU), 16  tons of
noncontainerized or 1 unit of roll-on/roll-off cargo moved by
barge or rail rather than by trucks or other motor vehicles on
Virginia’s highways. The credit may only be claimed for the
number of containers (or the amount of noncontainerized
cargo or units of roll-on/roll-off cargo) shipped by barge or
rail in excess of the number of containers (or the amount
of noncontainerized cargo or units of roll-on/roll-off cargo)
shipped by barge or rail by the taxpayer during the preceding
taxable year. For purposes of this credit, a 40-foot or 45-foot
container is equivalent to 2 TEUs. Containers for which this
credit is claimed must result from a diversion of shipments
from the Commonwealth’s highways.

For purposes of this credit, a unit of roll-on/roll-off cargo or
16 tons of noncontainerized cargo is equivalent to 1 TEU.
If you are claiming this credit for noncontainerized cargo,
convert the tonnage to TEUs and enter the number of TEUs
on Lines 2 and 3.

To receive a credit, an international trade facility is required
to apply to the Department. No more than $500,000 in tax
credits can be issued in any fiscal year. If the amount of
tax credits requested exceeds $500,000, the credits will be
allocated proportionately among all qualified taxpayers. The
Department will determine the allowable credit amount for
the taxable year and provide a written certification to each
taxpayer.
Taxpayers can claim this credit against the individual income
tax, the corporate income tax, the tax on estates and trusts,
the bank franchise tax, the insurance premiums license tax,
and the tax on public service corporations. Any unused tax
credits may be carried over for 5 taxable years. Any amount
of credit attributable to a partnership, S corporation, or limited
liability company must be allocated to the individual partners,
shareholders, or members, respectively, in proportion to
their ownership or interest in the business entity.
For purposes of this credit, an “international trade facility”
is a company that is doing business in Virginia and is
engaged in port-related activities, including but not limited to
warehousing, distribution, freight forwarding and handling,
and goods processing; has the sole discretion and authority
to move cargo in containers originating or terminating in
Virginia; uses maritime port facilities located within the
Commonwealth; and undertakes activities that result in using
a barge or rail to move cargo containers rather than using
trucks or other motor vehicles on a highway. To qualify for
this credit, an international trade facility must have an
ownership interest in the cargo and control the choice
of transportation.
The credit is effective for taxable years beginning on and
after January 1, 2011, but before January 1, 2025. No tax
credits can be issued after the fiscal year ending June 30,
2025.

What to Enclose
You must complete and enclose your validation summaries
(current and previous taxable years) from the VPA. Additionally,
Schedule A should be submitted for shipments not listed on the
VPA validation summary or shipped through non-VPA owned
ports. In the “Container Size” column, indicate whether the
container is a 20-foot, 40-foot, or 45-foot container, or state the
amount of noncontainerized cargo. For purposes of this credit,
a 40-foot or 45-foot container is equivalent to 2 TEUs, and
a unit of roll-on/roll-off cargo or 16 tons of noncontainerized
cargo is equivalent to 1 TEU. Copies of Schedule A can be
submitted if additional space is needed.
Taxpayers should retain all supporting documentation, such
as bills of lading that show the amount of cargo that was
shipped and the date of shipment.

When to Submit Application
Form BRU and any supporting documentation must be
completed and mailed no later than April 1 for credits earned
the preceding year.
For any application received without a postmark, the date
received by the Department will be used to determine if the
application was received by the filing deadline.

Where to Submit Application
Submit Form BRU and enclosures to the Department of
Taxation, ATTN: Tax Credit Unit, P.O. Box 715, Richmond,
VA 23218-0715 or fax it to (804) 774-3902.

What to Expect from the Department
If the Department needs additional information we will contact
you by May 1 and you will have until May 15 to respond. If
you have not received acknowledgment of your application
by May 31, call (804) 786-2992.
The Department will issue the credit by June 30. If you have
not received your credit certification by July 15, call (804)
786-2992.

What Does the Taxpayer Need to Do
Upon receiving notification of the allowable credit amount,
taxpayers may claim the allowable credit amount on the

applicable Virginia income tax return and compute any
carryover credit amount.
As an enclosure with their return, a corporation must file
Schedule 500CR; an individual must file Schedule CR; and
a pass-through entity must file Schedule 502ADJ.

IMPORTANT
All business taxpayers should be registered with the
Department before completing Form BRU. If you are not
registered, complete Form R-1.
If the tax return upon which this credit will be claimed is due on
or before May 1, you may need to either submit an extension
payment for any tax due or file an amended return once you
have received the credit certification.
By providing an email address on the form, the taxpayer
consents to allow emailed communications from the
Virginia Department of Taxation related to this tax credit
application. If the taxpayer does not wish to receive electronic
communications, do not enter an email address in the spaces
provided on the form.

Pass-Through Entities
Each pass-through entity must file Form TCA with the
Department when allocating this credit to its participants.
Form TCA should be filed within 30 days after the credit is
granted, but at least 90 days prior to the participants filing their

income tax returns. Failure to file Form TCA may result in the
credit claim being disallowed and/or a delay in processing the
participant’s return. Form TCA should be sent to: Virginia
Department of Taxation, ATTN: Tax Credit Unit, P.O. Box
715, Richmond, VA 23218-0715 or you may fax it to (804)
774-3902. Do not do both.
Credit must be allocated among owners in proportion to each
owner’s percentage of ownership or participation in the passthrough entity.
All pass-through entities distributing this credit to its
participants, including owners, shareholders, partners, or
members, must give each such participant a Schedule VK‑1,
Owner’s Share of Income and Virginia Modifications and
Credits.

Where to Get Help
Write the Virginia Department of Taxation, ATTN: Tax
Credit Unit, P.O. Box 715, Richmond, VA 23218‑0715 or call
(804) 786‑2992. If you need assistance completing the VPA
Validation Report please call (757) 391-6235 or you may email
[email protected]. For assistance with the container and
cargo verification process, contact the Virginia Port Authority
at (757) 391‑6235 or [email protected].