Virginia Clean Fuel Vehicle Job Creation Tax Credit and Instructions

Clean Fuel Vehicle Job Creation Tax Credit and Instructions
Form 305
Form 305
Tax Year _______________

Clean-Fuel Vehicle and Advanced
Cellulosic Biofuels Job Creation
Tax Credit

*VA0305115888*

Credit Expired December 31, 2014. Use This Form for Taxable Years Prior to January 1, 2015 Only.
For calendar year. If FISCAL YEAR filer, enter beginning date
Name of Company

,

and ending date

Virginia Account Number

,

and check here. 

Federal Employer Identification Number

The Clean-Fuel Vehicle and Advanced Cellulosic Biofuels Job Creation Tax Credit (Va. Code § 58.1-439.1), provides a
corporation income tax credit for the creation of full-time clean-fuel vehicle and biofuel jobs. The allowable credit is $700 per
qualifying job created for the first 3 taxable years, for a maximum "per job" credit of $2,100. Unused credits may be carried
forward for up to 5 years. Corporations claiming this credit based on qualifying jobs cannot also claim the Major
Business Facility Job Tax Credit, computed on Form 304. In the case of a partnership or limited liability company, the
credit will be allocated to the corporate partners or corporate members in proportion to their ownership or interest in the
partnership or limited liability company; the credit is not distributed to individuals, estates or trusts.

Part I - Credit Qualification
	 1.	Qualification based on business type:
	 Primary business in Virginia: NAICS
. Check the applicable box below.
	
  A.	 Manufacture of major components of the energy storage, energy supply, or engine, motor, and power train
mechanisms unique to a vehicle fueled by clean special fuels.
	
  B.	 Manufacture of components uniquely used to convert vehicles designed to operate on gasoline or diesel fuel to
operate on clean special fuels or advanced biofuels.
	
  C.	 Manufacture of vehicles designed to operate on clean special fuels.
	
  D.	 Conversion of vehicles designed to operate on gasoline or diesel fuel to operate on clean special fuels or advanced
biofuels.
	
  E.	 The manufacture of components designed to produce, store, and dispense clean special fuels or advanced
biofuels.
	
  F.	 The production of advanced biofuels.
	 2.	For each job that the credit is claimed, ALL of the following must apply:
	
  A.	 The job was created by the corporation during the taxable year that the credit is claimed (new credits expired
December 31, 2014) or was continued from the previous taxable year that the credit was claimed;
	
  B.	 The qualifying job must have been filled by an individual working at least 40 hours per week during at least forty
weeks during the taxable year; and
	
  C.	 Employment level in qualifying jobs in the taxable year that the credit is first claimed increased over the previous
taxable year.

Part II - Credit Computation
	 3.	This credit is claimed for clean-fuel vehicle and advanced cellulosic biofuels jobs created in the city/county of
, Virginia.
	 4.	Number of qualifying jobs: Complete Schedule A (Form 305), then enter the number of qualifying jobs
from Schedule A, Part II (See instructions).
		 4a.	 Number of first time qualifying jobs for the current taxable year. EXPIRED December 31, 2014...4a. 	
		 4b.	 Number of qualified jobs continued from the first preceding year. EXPIRED December 31, 2014...4b. 	
		 4c.	 Number of qualified jobs continued from the second preceding year. EXPIRED December 31, 2014...4c. 	
	 5.	Clean fuel vehicle job creation tax credit: Multiply the total of Lines 4b and 4c by $700....................5. 	
	 6.	If claiming a credit distribution received from a pass-through entity, enter the credit amount
(See instructions). EXPIRED December 31, 2014.....................................................................................6. 	
	 7.	Carryover credit from prior year(s). . ..................................................................................................7. 	
	 8.	Total credit accumulated this year: Add amounts on Lines 5, 6 and 7................................................8. 	
	 9.	Total tax on tax return after priority credits (See instructions).............................................................9. 	
	10.	Job creation tax credit allowable this year: Enter the lesser of the amount on Line 8 or Line 9
	here and on the applicable credit line of your Virginia income tax return. . ..........................................10. 	

Part III - Carryover Tax Credit
	11.	Excess credit carryover to next year: If Line 8 is greater than Line 9, subtract Line 9 from Line 8.
	(This information will be used when computing the credit on your income tax return next year).... 11. 	
Va. Dept. of Taxation

Form 305 W 2601151 Rev 09/15

Page 1

Schedule A	
Form 305 	
Tax Year _______________

List of Qualifying Clean-Fuel 	
Vehicle and Advanced Cellulosic
Biofuels Jobs And Employees

*VA305A115888*

Attach to Form 305, Clean-Fuel Vehicle and Advanced Cellulosic Biofuels Job Creation Tax Credit.
If more space is needed, attach additional schedules or a list containing the information below. 	
Page
of
Name of Company

Virginia Account Number

Federal Employer Identification Number

Complete Columns A through D for each employee, listing all qualifying employees performing jobs that qualify for the credit.
Jobs created during 2015 do not qualify. This information will be used when completing Form 305, Lines 4b and 4c. Complete
a separate Schedule A for each location. See Part I of Form 305 to determine whether a job qualifies as a full-time, clean-fuel
vehicle job for purposes of this credit. Directions for completing Columns A through D follow.
Column A.	 Enter the company’s tracking number (position number, job number, etc.) for the qualifying position. If this job
has been held by more than one employee during the period in which the credit is computed for the current
taxable year, attach a statement of explanation which includes the number of the other employee(s) holding
this position.
Column B.	 Enter the employee’s name and social security number.
Column C.	 Enter the date that qualifying employment began. If the employee leaves the qualifying job, whether through
promotion, transfer or termination, enter the ending date in parenthesis.
Column D.	 When completing Column D, enter only the number of full weeks worked by the employee during the taxable
credit year.
If more space is needed, attach additional schedules or a list containing the information below.

PART I Identify Qualifying Employees and Jobs
Column A
Position Number or
Job Number

	

1.

	

2.

	

3.

	

4.

	

5.

	

6.

	

7.

	

8.

	

9.

	

10.

Column B
Employee's Name and SSN

Column C

PART II Compute the Number of Qualifying Employees
Enter the number of jobs above that qualify for the clean-fuel vehicle job creation tax
	
A.

credit. Enter here and the applicable amounts on Form 305, Lines 4b and 4c . . . . . . .
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Column D

Beginning Date of
No. Qualifying Full
Qualifying Employment Weeks Employed
(Ending Date)
During Taxable Year

Schedule B 	

Pass-Through Entity Identification

*VA305B115888*

Form 305
Tax Year _______________

Attach to Form 305, Clean-Fuel Vehicle and Advanced Cellulosic Biofuels Job Creation Tax Credit.
Page

of

Name of Company

Virginia Account Number

Federal Employer Identification Number

Complete this schedule to identify each owner of the pass-through entity to which a portion of this credit is distributed. Attach
a separate schedule or a list containing the information below if additional space is needed. Distribution is to be based on
each taxpayer’s proportion of ownership or interest in the entity. While the pass-through entity may consist of both corporate
and non-corporate members, the credit may only be claimed against the corporate income tax. List all pass-through entity
owners, regardless of credit qualification. For non-qualifying entity owners, enter "Non-qualifying" in Column A, then complete
Columns D and E. Check the box below to indicate the type of entity which earned this credit.

  Limited Liability Company
Column A
Name of Entity Owners

  Partnership

  S Corporation

Column B
FEIN

  Other (Specify)

Column C
Address

Column D
Percentage

1.

%

2.

%

3.

%

4.

%

5.

%

6.

%

7.

%

8.

%

9.

%

10.

%

11.

%

12.

%

13.

%

14.

%

15.

%
Total

Page 3

%

Column E
Credit

Instructions for Completing Form 305, Clean-Fuel Vehicle and Advanced Cellulosic Biofuels
Job Creation Tax Credit
The Clean-Fuel Vehicle and Advanced Cellulosic Biofuels Job
Creation Tax Credit expired on December 31, 2014. No new jobs
created after the expiration date qualify for the credit. Any unused
credit may be carried forward for up to five years. Complete
Part XI of Schedule 500CR to compute the amount of carryover
credit available.
•	 This credit may not be claimed if the corporation is claiming
a Major Business Facility Job Tax Credit.
•	 The Clean-Fuel Vehicle and Advanced Cellulosic Biofuels Job
Creation Tax Credit is a nonrefundable credit. However, any
excess credit can be carried forward for up to 5 years.
Fiscal year filers: Complete this line only if your taxable year is
NOT from JANUARY 1 to DECEMBER 31. You must
use the same taxable period that you used on your federal
return.
Name, Account Number and Federal Employer Identification
Number or Social Security Number: Enter the
information for the taxpayer claiming this credit.
Definitions:
"Advanced biofuel" means a fuel derived from any cellulose,
hemicellulose, or lignin that is derived from renewable biomass
or algae.
"Clean special fuel" means any product or energy source used
to propel a highway vehicle, the use of which, compared to
conventional gasoline or reformulated gasoline, results in lower
emissions of oxides of nitrogen, volatile organic compounds, carbon
monoxide or particulates or any combination thereof. The term
includes compressed natural gas, liquefied natural gas, liquefied
petroleum gas, hydrogen, hythane (a combination of compressed
natural gas and hydrogen), or electricity.
"Job" means the full-time employment of an individual in Virginia by
a corporation for at least 40 hours per week during at least 40 weeks
during the calendar year whose primary work activity is related
directly to any of the activities listed in Va. Code § 58.1-439.1 (B).
"Vehicle" has the same meaning as provided in Internal Revenue
Code §§ 179A and 30.
Skip to Line 6 if your only Clean-Fuel Vehicle and Advanced
Cellulosic  Biofuels Tax Credit is from a pass-through entity
(partnership, S corporation, etc).
Lines 1 and 2: Complete Lines 1 and 2, providing the NAICS code
and checking the applicable boxes, to show qualification
for the credit. Note that all of the qualifications on
Line 2 must be met in order to qualify for the credit.
Line 3: 	 Enter the name of the city or county in Virginia in which
the clean-fuel vehicle job(s) was created.
Line 4:	 Number of qualifying jobs: Complete Schedule A, then
enter the number of qualifying jobs on Lines 4b and
4c. Printouts containing the same information may be
substituted for Schedule A.
	
NOTE: If a clean-fuel vehicle and advanced cellulosic
biofuels job does not qualify for this credit solely because
less than 40 weeks remained in the taxable year after it
was created and filled, the credit may still be claimed.
However, the forty week requirement must be met in the
next taxable year or the credit must be recaptured through
the filing of an amended return. This treatment will also
apply for the next two subsequent taxable years involving
that job.

Line 5:	 Multiply the total of Lines 4b and 4c by $700.
Line 6:	 Complete this line if claiming a current year clean-fuel
vehicle job tax credit distributed to you from another
entity. See the instructions for Schedule B in the next
column for additional information concerning passthrough entities.
Line 7:	 Enter the carryover credit from the prior year.
Line 8:	 Add amounts on Lines 5, 6 and 7.
Line 9:	 Total tax on return after priority credits: In general, claim
priority credits in the following order:
	
•	 Claim nonrefundable credits without a carryforward
provision;
	
•	 Claim carryover credits from prior years in the order
which such carryover amounts are set to expire;
	
•	 Claim current year credits in the order of their
carryover provisions; and
	
•	 Report any unused credits as carryovers for
succeeding taxable years to the extent allowed.
Line 10:	 Clean-Fuel Vehicle and Advanced Cellulosic Biofuels
Job Creation Tax Credit allowable this year: Enter the
lesser of the amount on Line 8 or Line 9 here and on the
applicable credit line of your Virginia income tax return.
Line 11:	 Excess credit carryover to next year. If the amount on
Line 8 is larger than the amount on Line 9, subtract the
amount on Line 9 from the amount on Line 8.
Schedule B (Form 305)
Pass-Through Entity Identification
If distributing all or a portion of this credit, complete Schedule
B to identify all pass-through entity owners and each taxpayer to
whom a portion of the credit is distributed. Note that this credit may
only be used to offset the corporate income tax. Attach a separate
schedule if additional space is needed. Printouts containing the same
information may be substituted for Schedule B.
Schedule B should contain the name, federal identification number
(FEIN), Virginia account number (if known), address and amount
of credit for each qualifying pass-through entity owner, and the total
percentage and credit not distributed to non-qualifying entities such
as individuals. The total credit in Column E should be the current
year credit amount from Form 305, Part 1, Line 5.
Each corporate taxpayer in Column A must receive a copy
of the pass-through entity’s Form 305 or a statement that
identifies the taxpayer earning the credit (name, address, and
state and federal identification numbers) and provides all
information set forth on Form 305. Each taxpayer receiving
a distribution will enter the amount received on its own Form
305, Line 7. Note that this credit is only applicable as a credit
against the Virginia corporate income tax.
Where to Get Help
For additional information, write the Virginia Department of
Taxation, P. O. Box 5126, Richmond, VA 23220-0126 or call
(804) 367-8037.
Tenemos servicios disponible en Español.
To order forms, call (804) 367-8031. If you have access to the
internet, you can obtain most Virginia income tax forms and
additional tax information by visiting the Department's website:
www.tax.virginia.gov.
Forms are also available from the office of your local Commissioner of
the Revenue, Director of Finance or Director of Tax Administration.

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