Tax Type
Corporation Income Tax
Description
Credit for cogenerators for coal purchases
Topic
Computation of Income
Credits
Date Issued
05-19-1988
May 19, 1988
Re: Request For Ruling; Corporation Income Tax
HB 748 Credit for Cogenerators
Dear*************
This is in response to your letter of May 6, 1988, requesting a ruling on the application to partnerships of the new credit for coal Purchased by qualifying cogenerators.
The 1988 General Assembly enacted a new credit for cogenerators (1988 Acts c. 730). The act provides, in pertinent part, that "every cogenerator as defined in §58.1-2600 shall be allowed a credit . . ." Section 58.1-2600 contains. the following definition:
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- "Cogenerator" means a qualifying cogenerator or qualifying small power producer within the meaning of regulations adopted by the Federal Energy Regulatory Commission in implementation of the Public Utility Regulatory Policies Act of 1978 (P.L. 95-617).
- "Cogenerator" means a qualifying cogenerator or qualifying small power producer within the meaning of regulations adopted by the Federal Energy Regulatory Commission in implementation of the Public Utility Regulatory Policies Act of 1978 (P.L. 95-617).
Therefore, if a corporation owns an interest in a partnership which is a qualifying cogenerator or qualifying small power producer under federal law, the corporate partner will be entitled to claim a prorata share of the credit against Virginia income tax based on the partnership's purchases of coal mined in Virginia.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner