Tax Type
Corporation Income Tax
Description
Qualified Equity and Subordinated Debt Investments Tax Credit
Topic
Credits
Date Issued
11-28-2000
November 28, 2000
Qualified Equity and Subordinated Debt Investments Tax Credit
Dear ****
This letter will reply to your request, dated August 21, 2000, for a ruling on the application of the Virginia Qualified Equity and Subordinated Debt Investments Tax Credit pursuant to Code of Virginia § 58.1-339.4.B. (the "Credit") to the fact scenario that you presented in that request.
FACTS
On May 19, 2000, the department denied your Investor Application for the Credit, dated April 28, 2000, and postmarked April 28, 2000, with respect to your investment in a qualified business during calendar year 1999. The department found that your Application failed to meet the April 1, 2000 deadline set forth in the department's regulation (23 VAC 10-110-225 et seq.) governing Investor Applications for the credit for taxable year 1999.
You ask to be advised whether, assuming you make a timely filing of an application for the Credit in 2001 covering your investment in the qualified business during calendar year 1999, the investment will then qualify for the Credit for taxable year 2000.
RULING
Code of Virginia § 58.1-339.4.B allows the Credit only with respect to a taxpayer's qualified investments made during a specific taxable year. Therefore, your investment made in taxable year 1999 would not qualify for the Credit in a subsequent taxable year.
While I am sympathetic to your situation, there is no statutory authority to grant you the 1999 Credit you requested. The annual amount of Credits that can be granted is limited to $ 5 million. Timely-filed Investor Applications for 1999 Credits totaled $ 8.2 million, resulting in each applicant receiving 60.67% of the Credit requested.
If you have any questions regarding this ruling, please contact * * * of the department's Office of Tax Policy at * * *
Danny M. Payne
Tax Commissioner
Qualified Equity and Subordinated Debt Investments Tax Credit
Dear ****
This letter will reply to your request, dated August 21, 2000, for a ruling on the application of the Virginia Qualified Equity and Subordinated Debt Investments Tax Credit pursuant to Code of Virginia § 58.1-339.4.B. (the "Credit") to the fact scenario that you presented in that request.
FACTS
On May 19, 2000, the department denied your Investor Application for the Credit, dated April 28, 2000, and postmarked April 28, 2000, with respect to your investment in a qualified business during calendar year 1999. The department found that your Application failed to meet the April 1, 2000 deadline set forth in the department's regulation (23 VAC 10-110-225 et seq.) governing Investor Applications for the credit for taxable year 1999.
You ask to be advised whether, assuming you make a timely filing of an application for the Credit in 2001 covering your investment in the qualified business during calendar year 1999, the investment will then qualify for the Credit for taxable year 2000.
RULING
Code of Virginia § 58.1-339.4.B allows the Credit only with respect to a taxpayer's qualified investments made during a specific taxable year. Therefore, your investment made in taxable year 1999 would not qualify for the Credit in a subsequent taxable year.
While I am sympathetic to your situation, there is no statutory authority to grant you the 1999 Credit you requested. The annual amount of Credits that can be granted is limited to $ 5 million. Timely-filed Investor Applications for 1999 Credits totaled $ 8.2 million, resulting in each applicant receiving 60.67% of the Credit requested.
If you have any questions regarding this ruling, please contact * * * of the department's Office of Tax Policy at * * *
Danny M. Payne
Tax Commissioner
Rulings of the Tax Commissioner