Virginia Enterprise Zone Credit - Bank Franchise Tax and Instructions

Enterprise Zone Credit - Bank Franchise Tax and Instructions
Form 301 - Enterprise Zone Tax Credit - Corporation Income Tax
VIRGINIA

Form 301
CORPORATION TAX

	 20____

ENTERPRISE ZONE CREDIT 	 Qualification year
	 	 1st year	
	 6th year
CORPORATION TAX
Enclose this form with your
return

Name(s) as shown on return or form

	
	
	
	

FEIN	

	 2nd year	
	 3rd year	
	 4th year	
	 5th year	

	 7th year
	 8th year
	 9th year
	 10th year

*VAC301119888*

Zone Location Code

	
	 (1)	 Taxable income subject to credit .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (1)
	 (2)	 Percentage of business done within the enterprise zone. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (2)	%
	 (3)	 Income attributable to enterprise zone activity (Line 1 multiplied by Line 2).  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (3)
	 (4)	 Tax attributable to enterprise zone activity (Line 3 multiplied by 6%). .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (4)
FOR BUSINESSES QUALIFYING PRIOR TO JULY 1, 1995
General Tax Credit:
	 (5)	 Applicable percentage.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (5)	%
	 (6)	 General tax credit (Line 4 multiplied by the percentage on Line 5).  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (6)
Unemployment Tax Credit:
	 (7)	 Current year unemployment tax credit (see instructions). .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (7)
	 (8)	 Carryover unemployment tax credit from prior years.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (8)
	 (9)	 Total unemployment tax credit available this year (add Line 7 and Line 8).  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (9)
	 (10)	 Tax attributable to enterprise zone activity, less any general tax credit (Line 4 less Line 6) .  .  .  .  .  .  .  .  .  .  . (10)
	 (11)	 Credit allowed this year (lesser of Line 9 or Line 10).  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (11)
	 (12)	 Credit carryover to subsequent year (subtract Line 11 from Line 9) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (12)
FOR BUSINESSES QUALIFYING ON OR AFTER JULY 1, 1995
General Tax Credit:
	 (13)	 Applicable percentage (see instructions).  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (13)	%
	 (14)	 Available credit (Line 4 multiplied by the percentage on Line 13) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (14)
	 (15)	 Credit authorized by the Department of Housing and Community Development. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (15)
	 (16)	 General tax credit (enter the lesser of Line 14 or Line 15)..  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (16)
Space Reserved for Future Use
	(17)	
	(18)	
	(19)	
	(20)	
	(21)	
	(22)	
Zone Investment Tax Credit:
	 (23)	 Zone investment tax credit negotiated with the Department of Housing and Community Development .  .  .  .  . (23)
	 (24)	 Zone investment tax credit used in prior years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24)	
	 (25)	 Total zone investment tax credit available this year (subtract Line 24 from Line 23).  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (25)
	 (26)	 Credit authorized by the Department of Housing and Community Development. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (26)
	 (27)	 Lesser of Line 25 or Line 26. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (27)
	 (28)	 Credit used this year (see instructions) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (28)
	 (29)	 Credit carryover to subsequent year (subtract Line 28 from Line 25) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . (29)
Total Enterprise Zone Credit:
	 (30)	 Enter the total of all applicable Enterprise Zone Credits for this year (add Lines 6, 11, 16, and 28).  .  .  .  . (30)

Va. Dept. of Taxation  2601144  Rev. 08/19

FORM 301 INSTRUCTIONS — CORPORATION 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
issued by the Department of Housing and Community Development.
The following rules apply when computing tax credits:
•	
•	
•	

Where a credit is limited to a percentage of the tax, the "tax" for this
purpose shall be gross tax, less the telecommunications company
credit.
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.
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 taxable income from Line 7 or 8(a) of Form 500, as appropriate.
	 (2)	 Enter the percentage of business done within the enterprise zone.
Corporations 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 (Form 500) must be enclosed with Form 301.
Partners, shareholders of S corporations, and members of LLCs
should receive a Schedule 502A (Form 502) from the partnership,
S corporation, or LLC, completed for this purpose, and enclose it
with their Form 301.
	 (3)	 Enter the amount from Line 1 above if the qualified business firm
operated solely within the enterprise zone. For a qualified business
firm which operates both inside and outside of a zone, multiply
the taxable income subject to credit (Line 1) by the percentage of
business done within the enterprise zone (Line 2).
	 (4)	 Multiply Line 3 by 6% to determine the tax attributable to enterprise
zone activity.
FOR BUSINESSES QUALIFYING PRIOR TO JULY 1, 1995
General Tax Credit:
	(5)	 Enter the applicable percentage corresponding to the qualification
year as follows:

		
Operations prior to July 1, 1992
		 (a) First tax year - 80%	
(b) Second tax year - 60%	

(c) Third tax year - 40%
(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%
	 (6)	 Multiply the amount on Line 4 by the percentage on Line 5. This is
your current year general tax credit. Any unused tax credit in this
category may not be applied to future tax years.

	(10)	Enter the remaining tax attributable to a enterprise zone activity
less any general tax credit (Line 4 less Line 6).
	(11)	 Credit used this year: Enter the amount from Line 9 or 10, whichever
is less.
	(12)	Credit carryover to subsequent year: Subtract the amount on Line
11 from the amount on Line 9.
FOR BUSINESSES QUALIFYING ON OR AFTER JULY 1, 1995
General Tax Credit:
	(13)	 Enter the percentage authorized by the Department of Housing and
Community Development.
	(14)	Multiply the amount from Line 4 by the percentage on Line 13.
	(15)	 Enter the amount of credit authorized by the Department of Housing
and Community Development.
	(16)	Enter the lesser of Line 14 or Line 15. 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
	(17)	
	(18)	
	(19)	
	(20)	
	(21)	
	(22)	
Zone Investment Tax Credit:
	(23)	 Enter the amount of zone investment tax credit negotiated with the
Department of Housing and Community Development.
	(24)	Enter the total zone investment tax credit used in prior years.
	(25)	Total zone investment tax credit: Subtract Line 24 from Line 23.
	(26)	Enter the credit amount authorized by the Department of Housing
and Community Development.
(27)	Enter the amount from Line 25 or Line 26, whichever is less.
	(28)	Enter the amount of credit used this year: The amount entered on
this line is the amount on Line 27, but cannot exceed the corporation
tax liability amount (Form 500, Line 9) minus all priority credits taken
on Schedule 500CR (Section 1, Part 2 and Section 1, Parts 4-28)
and Lines 6, 11, and 16 from this form, as applicable.
	(29)	Credit carryover to subsequent year: Subtract the amount on Line
28 from the amount on Line 25.
	(30)	 Total Enterprise Zone Credit: Enter the total of all applicable
Enterprise Zone Credits for this year from Lines 6, 11, 16, and 28.
Enter the total here and on Schedule 500CR, Section 1, Part 3,
Line 3A.

Unemployment Tax Credit:

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 500CR,
Section 1, Part 3, Line 3A.

	 (7)	 The unemployment tax credit amount is equal to the amount of state
unemployment tax paid on employees within the enterprise zone
multiplied by the applicable percentage. The percentages are as
follows:

For additional information, call (804) 367-8037 or write to the Virginia
Department of Taxation, P.O. Box 1115, Richmond, VA 23218-1115.
You can obtain most Virginia tax forms from the Department's
website at www.tax.virginia.gov.

		
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%

For assistance contact:

		
Operations beginning on or after July 1, 1992
		 (a) First tax year - 80%
(b) Second through tenth tax years - 60%
	(8)	 Enter the carryover amount from the prior year. Enclose a
computation of the carryover amount.
	 (9)	 Add Lines 7 and 8. This is the total unemployment tax credit available
for the year.

		
		
		

Virginia Department of Taxation
P.O. Box 1115
Richmond, VA 23218-1115

		(804) 367-8037
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