Bulletin Number
VTB 82-20
Tax Type
Corporation Income Tax
Individual Income Tax
Description
Renewable Energy Credit, Individual Estimated Income, Political Contribution, Reciprocity
Topic
Credits
Payment and Refund
Date Issued
08-15-1982
August 15, 1982
The 1982 General Assembly enacted several laws which affect Virginia income and estimated income tax returns. The purpose of this bulletin is to provide a synopsis of four of these laws.
Renewable Energy Credit Effective: January 1, 1983
This bill adds Code of Virginia §58-151.014:2 which provides a tax credit to individuals and corporations for renewable energy source expenditures as defined in § 44C of the Internal Revenue Code and the accompanying regulations, except that taxpayer labor cannot be included in determining energy expenditures. The Commissioner will develop regulations for certifying corporate expenditures, following the § 44C provisions relating to individuals as closely as practicable.
The amount of the credit cannot exceed $1000 for a qualified expenditure or the income tax liability, whichever is less, i.e., this is a nonrefundable credit. However, any unused portion of the credit may be carried forward to the next taxable year and added to any applicable credit for that year. Only one credit per expenditure is allowable.
The allowable credit is computed as follows:
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Period of Expenditure Credit
January 1, 1983 through December 31, 1984 ........25% of qualified expenditure
January 1, 1985 through December 31, 1985 ........20% of qualified expenditure
January 1, 1986 through December 31, 1986 ........15% of qualified expenditure
January 1, 1987 through December 31, 1987 ........10% of qualified expenditure
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(Chapter 324, 1982 Acts of Assembly, House Bill 784)
Individual Estimated Income Tax Effective: January 1, 1982
This bill amends Code of Virginia § 58-151.26 to repeal the 5% penalty for late payment of the estimated income tax, computed on Forms 760-C and 760-F. Taxpayers will still be liable for an addition to the tax if any estimated tax payment is underpaid in any quarter. (Chapter 530, 1982 Acts of Assembly, Senate Bill 114).
Voluntary Political Contribution Effective: January 1, 1982
This bill allows each taxpayer filing a Virginia individual income tax return to donate $2 of his/her refund to the State Central Committee of a political party which "at the last preceding statewide general election polled at least 10% of the total vote cast for the office filled in that election by the voters of the Commonwealth at large.' (§ 24.1-1, Code of Virginia). For 1982, the only qualifying parties are the Democratic and Republican Parties of Virginia. A total of $4 may be donated on a return if both spouses choose to donate $2 of their refund. Each taxpayer making the donation must designate on the return which political party is to receive his/her political contribution.
Taxpayers not due a refund may not make a contribution via their Virginia individual income tax return. (Chapter 351, 1982 Acts of Assembly, House Bill 605)
Reciprocity Effective: January 1, 1982
This bill provides the statutory authority for Virginia to enter into reciprocal agreement with other states to exempt nonresidents from the income tax on compensation income. Under such reciprocity, both parties to the agreements must provide identical income tax treatment for nonresidents. Signing an agreement will exempt nonresidents from income tax withholding, filing an income tax return and paying income tax to both Virginia and the reciprocating state. (Chapter 528, 1982 Acts of Assembly, Senate Bill 81).
If there are any questions about these changes call (804) 257-8031 or write the Virginia Department of Taxation, P. O. Box 6-L, Richmond, Virginia 23282.
Tax Bulletins