Virginia Application for International Trade Facility Tax Credit

Application for International Trade Facility Tax Credit
Form ITF - Application for International Trade Facility Tax Credit
Virginia
Form ITF

Application for International
Trade Facility Tax Credit

Tax Year
___________

Submit this form by April 1.
This credit must be approved before being claimed on your return.
A separate Form ITF must be completed for each Port Job Tax Credit.
The validation summary from the Virginia Port Authority (VPA) must be completed before filing this application.
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 Proprietorship	

C Corporation	

S Corporation

	

Partnership	

LLC	

Other______________________________

Have you applied for any other credits this year? If yes, indicate which credit(s):
If you have applied for a Major Business Facility Job Tax Credit –STOP– You do not qualify.
Did the company transport at least 5% more cargo through maritime port facilities in the Commonwealth during the current
taxable year than the preceding taxable year?
	YES. Enter the figures for both years as listed on the enclosed VPA validation summaries:
	

____________________ current taxable year	

____________________ previous taxable year

–OR–
	NO. This company does not qualify for the tax credit.
Declaration and Signature
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

Printed Name

Preparer Name

Preparer Email Address

Va. Dept. of Taxation  3101060  Rev. 08/23

Title

Date

Preparer Phone Number

Virginia
Form ITF

Application for International
Trade Facility Tax Credit

Page 2

Name as it appears on Form ITF

Tax Year
___________
FEIN or SSN

Check the box to identify the credit option for which you are applying. You cannot claim both credits in the same taxable year.
	 Port Job Tax Credit (complete Section 1)  –OR– 

	 Port Investment Tax Credit (complete Section 2)

SECTION 1 ­— PORT JOB TAX CREDIT
Complete and return the applicable schedules. NOTE: No credit is allowed for the same jobs for which a Major Business
Facility Job Tax Credit was claimed pursuant to Va. Code § 58.1-439.
YEAR 1

Check this box if you are applying for a Port Job Tax Credit for the current year and complete
Lines 1a, 1b, and 1c, Schedule A, and Schedule B.

1a.	 Average number of qualified full-time employees reported to the Virginia Employment
Commission for the year for which you are applying - Schedule A . . . . . . . . . . . . . . 
1b.	Number of new qualified full-time employees that resulted from increased qualified
trade activities (see instructions for information regarding fractional employees) Schedule B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
1c.	 Amount of credit requested. Multiply Line 1b by $3,500. . . . . . . . . . . . . . . . . . . .  $	
YEARS 2 – 6

.00

Check this box and indicate the year if you are reporting employee totals for a prior year Port
Job Tax Credit. Complete Lines 1d - 1h and Schedule A.

Tax year of the original credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Filing Sequence:	

  2nd Year 

  3rd Year 

  4th Year 

  5th Year 

  6th Year

1d.	Number of qualified full-time employees reported in Year 1.
(Line 1a of Form ITF for Year 1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
1e.	 Average number of full-time employees reported during the current year - Schedule A. . 
1f.	 Credit Recapture - If Line 1e is greater than or equal to Line 1d, no action is needed.
If Line 1d is greater than Line 1e, the credit reported in Year 1 must be reduced.
Subtract Line 1e from Line 1d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
NOTE: The Department will notify you regarding your adjusted carryforward and whether a bill will be forthcoming.

SECTION 2 — PORT INVESTMENT TAX CREDIT
2a.	 Amount of capital investment made by the taxpayer to facilitate the increased
qualified trade activities reported on Schedule C. . . . . . . . . . . . . . . . . . . . . . . . . . .  $	

.00

$	

.00

2b.	Amount of credit requested. Multiply Line 2a by 2% (0.02) . . . . . . . . . . . . . . . . . . 

Form ITF
Schedule A

List of Qualifying Full-Time Employees
Complete if applying for a Port Job Tax Credit

•	 Enclose a list of all full-time employees used to qualify for this credit.
•	 List must be in the format shown in the sample below.

Two or more affiliated companies may elect to aggregate the number of jobs created for qualified full-time employees as the
result of the establishment or expansion by the individual companies to qualify for this credit. "Affiliated companies" means
two or more companies related to each other such that one company owns at least 80% of the voting power of the other
(or others) or at least 80% of the voting power of two or more companies is owned by the same interests. For each month,
enter the total number of qualifying full-time employees on Schedule A.
Each qualifying full-time position must:
(a)	

be of indefinite duration, created by the taxpayer after establishing or expanding an international trade facility in
Virginia; and

(b)	

require a minimum of 35 hours per week for the entire year (minimum of 48 weeks); or

(c)	

require a minimum of 35 hours a week for the portion of the taxable year in which the employee was initially hired
for, or transferred to, the international trade facility in Virginia.

In addition to including your name as it appears on the Form ITF, your FEIN or Social Security Number, and the location of
your international trade facility, your list must include the following columns:
Columns A and B:	 Enter the name and Social Security Number of each qualifying employee. If claiming a qualifying
employee of an affiliated company (see paragraph above), make a notation beside each such employee
in Column A and enclose a separate schedule showing the corresponding affiliated company.
Column C:	

Enter the number of full months that the employee was employed in a qualifying position during the
credit year.

Column D:	

Enter a brief position description for the qualifying employee and provide the position number.

Column C

Column A
Employee Name
(Use Additional Schedules as
Necessary)

Column B
Social Security Number

Number of Full
Months Employed
During the Credit
Year

1

e
l
p

2
3
4
5
6
7

m
a
S

Column D
Brief Position Description / Number

Form ITF
Schedule B

International Trade Facility
Port Job Creation Schedule

Tax Year
___________

Complete if applying for a Port Job Tax Credit
Name as It Appears on Form ITF

FEIN or SSN

Starting with the first month of the taxable period for this return, enter the total number of new qualifying full-time or equivalent
full-time employees from Schedule A for each month.

Column A

Column B

Column C

Number of Qualified or Equivalent
Full‑Time Employees

Number of Full Months Employed
During The Credit Year

Multiply Column A by Column B

A

12 months

B

11 months

C

10 months

D

9 months

E

8 months

F

7 months

G

6 months

H

5 months

I

4 months

J

3 months

K

2 months

L

1 month

M Add Amounts in Column C, Lines A Through L.
N Divide Line M by 12.

Form ITF
Schedule C

International Trade Facility
Port Investment Schedule

Name as It Appears on Form ITF

Tax Year
___________
FEIN or SSN

Complete the below schedule if claiming the Port Investment Tax Credit. Copies of Schedule C can be submitted if additional
space is needed.

Date of Qualified
Capital Investment

Use of Capital Investment

Amount of Qualified
Capital Investment
$	.00
$	.00
$	.00
$	.00
$	.00
$	.00
$	.00
$	.00
$	.00
$	.00
$	.00
$	.00
$	.00
$	.00

Form ITF
Schedule D

International Trade Facility
Usage Tax Credit Schedule

Name as It Appears on Form ITF

Tax Year
___________
FEIN or SSN

Complete this schedule if claiming the International Trade Facility Tax Credit.
•	

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).

•	

Copies of Schedule D 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 ITF
Application for International Trade Facility Tax Credit
General Information
An “international trade facility” is defined as a company that
is engaged in port-related activities, including, but not limited
to, warehousing, distribution, freight forwarding and handling,
and goods processing; uses maritime port facilities located
in the Commonwealth of Virginia; and transports at least
5% more cargo, measured in (i) 1 International Organization
for Standardization ocean container, with a minimum 20-foot
length, (ii) 16 tons of noncontainerized cargo, or (iii) 1 unit of
roll-on/roll-off cargo through any publicly or privately owned
cargo facility located within the Commonwealth through
which cargo is transported during the taxable year than was
transported by the company through such facilities during
the preceding taxable year. Export cargo must be loaded
on a barge or ocean-going vessel and import cargo must
be discharged from a barge or ocean-going vessel at such
facility.
For taxable years beginning on and after January 1, 2011, but
before January 1, 2025, an income tax credit is allowed that
is equal to either $3,500 for every employee hired by Virginia
shippers that results from increased cargo moving through a
Virginia cargo facility operated by the Virginia Port Authority
or 2% of any capital investment made by a Virginia shipper
to facilitate increased cargo moving through a Virginia cargo
facility operated by the Virginia Port Authority. Taxpayers can
elect either credit, but cannot claim both credits in the same
taxable year. The credit can be claimed against the individual
income tax and the corporate income tax. 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.
A qualified company that claims employees for the Major
Business Facility Job Tax Credit or the International Trade
Facility Tax Credit cannot receive a Port of Virginia Economic
and Infrastructure Development Zone Grant (POV Zone
Grant) for those previously claimed jobs.
To receive a credit, taxpayers are required to apply to
the Department. No more than $1,250,000 in tax credits
will be issued in any fiscal year. If the amount of tax
credits requested exceeds $1,250,000, the credits will be
allocated proportionately among all qualified taxpayers. The
Department will determine the credit amount for the taxable
year and provide a written certification to each taxpayer.
The amount of the credit is limited to 50% of the taxpayer’s
tax liability for the taxable year. Any unused credit amount
can be carried forward for 10 years.

Port Job Tax Credit
A “qualified full-time employee” is defined as an employee
filling a new, permanent full-time position in an international
trade facility in the Commonwealth. A “new, permanent full-

time position” is defined as a job of indefinite duration, created
by the company as a result of the establishment or expansion
of an international trade facility in the Commonwealth,
requiring a minimum of 35 hours of work per week for the
entire normal year. A “normal year” is defined as at least 48
weeks in a calendar year. Seasonal and temporary positions;
jobs created by shifting a job function from elsewhere in
the Commonwealth; and positions ancillary to the principal
activities performed by employees at international trade
facilities do not qualify as new, permanent full-time positions.
No credit is allowed for the same jobs for which a Major
Business Facility Job Tax Credit was claimed pursuant to
Va. Code § 58.1-439.
No credit is permitted for any employee for whom a credit
under this section was previously earned by a related party
or trade or business under common control.
Fractional Employees
If an employee is employed in the Commonwealth for less
than 12 full months during the credit year, the credit amount
is equal to $3,500 multiplied by a fraction, the numerator of
which is the number of full months that the qualified full time
employee worked for the international trade facility for the
year, and the denominator of which is 12.
Credit Recapture
Part or all of the Port Job Tax Credit may be recaptured. If
the number of qualified full-time employees in any of the
5 years succeeding the credit year decreases below the
average number of qualified full-time employees employed
during the credit year, the credit is recaptured by recomputing
the credit which was earned for the original credit year using
the decreased number of qualified full-time employees and
subtracting the recomputed credit amount from the amount of
credit previously earned. If the average number of qualifying
full-time employees employed at an international trade
facility falls below the amount employed by the taxpayer
prior to claiming any credits in any of the 5  taxable years
succeeding the credit year, all credits earned with respect to
the international trade facility are recaptured. Any recapture
first reduces credits earned but not yet allowed and credits
allowed but carried forward before it increases a taxpayer’s
tax liability.
When claiming the Port Job Tax Credit, complete and return
the Schedule B with your completed Form ITF. You must also
submit Form ITF and Schedule A for the subsequent 5 years.

Port Investment Tax Credit
A “capital investment” is defined as the amount properly
chargeable to a capital account for improvements to
rehabilitate or expand depreciable real property placed in
service during the taxable year and the cost of machinery,
tools, and equipment used by an international trade facility
directly related to the movement of cargo and placed in
service on or after January 1, 2011. Machinery, tools, and

equipment do not include the basis of any property for which
a credit was previously granted; which was previously placed
in service in Virginia by the taxpayer, a related party, or a trade
or business under common control; or which was previously
placed in service in Virginia and has a basis in the hands
of the person acquiring it, determined by reference to the
basis of the property in the hands of the person from whom
it was acquired. “Capital investments” include expenditures
associated with exterior, structural, mechanical, or electrical
improvements necessary to expand or rehabilitate a building
for commercial or industrial use and excavations, grading,
paving, driveways, roads, sidewalks, landscaping, or other
land improvements. However, “capital investments” do not
include the cost of acquiring any real property or building; the
cost of furnishings; any expenditure associated with appraisal,
architectural, engineering, or interior design fees; loan fees,
points, or capitalized interest; legal, accounting, realtor,
sales and marketing, or other professional fees; closing
costs, permit fees, user fees, zoning fees, impact fees, and
inspection fees; bids, insurance, signage, utilities, bonding,
copying, rent loss, or temporary facilities incurred during
construction; utility hook-up or access fees; outbuildings; or
the cost of any well or septic system.

Where to Submit Application
Submit Form ITF and enclosures to the Virginia 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 acknowledgement 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.

Port Job Tax Credit Enclosures

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.

•	

Virginia Port Authority (VPA) validation summaries for
current and preceding taxable years.

Important Notes:

•	

Schedule D should be submitted for shipments not listed
on the VPA validation summary or shipped through
non‑VPA owned ports. Copies of Schedule D can be
submitted if additional space is needed.

•	

First-year applicants must complete Schedule A & B.

•	

Applicants filing for years 2-6 must complete Schedule A.

What to Enclose

Port Investment Tax Credit Enclosures
•	

Virginia Port Authority (VPA) validation summaries for
current and preceding taxable years.

•	

Schedule D should be submitted for shipments not listed
on the VPA validation summary or shipped through
non‑VPA owned ports. Copies of Schedule D can be
submitted if additional space is needed.

•	

Schedule C must be completed. Copies of Schedule C
can be submitted if additional space is needed.

When to Submit Application
Form ITF, the required schedules and any supporting
documentation must be completed and mailed by April 1 for
credits earned the preceding year. For each credit earned, you
must submit an updated Form ITF by April 1 each year for the
5 years following the year during which the credit originated.
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.

•	

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.

•	

All business taxpayers should be registered with the
Department before completing Form ITF. If you are not
registered, complete Form R-1.

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

Supporting Documentation

Write to 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].

You must retain a copy of any supporting documentation of
capital investments for your records. Examples of supporting
documentation may include any of the following:
•	
•	
•	

Proof of purchase, such as an invoice or receipt;
Proof of payment, such as a cancelled check, bank
statement or credit card statement; or
The depreciation worksheet for federal Form 4562 that
supports capital investments being claimed/reported.