58.1-439.2 - Coalfield employment enhancement tax credit.
§ 58.1-439.2. Coalfield employment enhancement tax credit.
A. For tax years beginning on and after January 1, 1996, but before January1, 2015, any person who has an economic interest in coal mined in theCommonwealth shall be allowed a credit against the tax imposed by § 58.1-400and any other tax imposed by the Commonwealth in accordance with thefollowing:
1. For coal mined by underground methods, the credit amount shall be based onthe seam thickness as follows:
Seam Thickness Credit per Ton
36" and under $2.00
Above 36" $1.00
The seam thickness shall be based on the weighted average isopach mapping ofactual coal thickness by mine as certified by a professional engineer. Copiesof such certification shall be maintained by the person qualifying for thecredit under this section for a period of three years after the credit isapplied for and received and shall be available for inspection by theDepartment of Taxation. The Department of Mines, Minerals and Energy ishereby authorized to audit all information upon which the isopach mapping isbased.
2. For coal mined by surface mining methods, a credit in the amount of fortycents per ton for coal sold in 1996, and each year thereafter.
B. In addition to the credit allowed in subsection A, for tax years beginningon and after January 1, 1996, any person who is a producer of coalbed methaneshall be allowed a credit in the amount of one cent per million BTUs ofcoalbed methane produced in the Commonwealth against the tax imposed by §58.1-400 and any other tax imposed by the Commonwealth on such person.
C. For purposes of this section, economic interest is the same as theeconomic ownership interest required by § 611 of the Internal Revenue Codewhich was in effect on December 31, 1977. A party who only receives an arm'slength royalty shall not be considered as having an economic interest in coalmined in the Commonwealth.
D. If the credit exceeds the person's state tax liability for the tax year,the excess shall be redeemable by the Tax Commissioner on behalf of theCommonwealth for ninety percent of the face value within ninety days afterfiling the return; however, for credit earned in tax years beginning on andafter January 1, 2002, such excess shall be redeemable by the TaxCommissioner on behalf of the Commonwealth for eighty-five percent of theface value within ninety days after filing the return. The remaining ten orfifteen percent of the value of the credit being redeemed, as applicable forsuch tax year, shall be deposited by the Commissioner in a regional economicdevelopment fund administered by the Coalfields Economic DevelopmentAuthority to be used for regional economic diversification in accordance withguidelines developed by the Coalfields Economic Development Authority and theVirginia Economic Development Partnership.
E. No person may utilize more than one of the credits on a given ton of coaldescribed in subsection A. No person may claim a credit pursuant to thissection for any ton of coal for which a credit has been claimed under §§58.1-433, 58.1-433.1 or § 58.1-2626.1. Persons who qualify for the credit maynot apply such credit to their tax returns prior to January 1, 1999, and onlyone year of credits shall be allowed annually beginning in 1999.
F. The amount of credit allowed pursuant to subsection A shall be the amountof credit earned multiplied by the person's employment factor. The person'semployment factor shall be the percentage obtained by dividing the totalnumber of coal mining jobs of the person filing the return, including thejobs of the contract operators of such person, as reflected in the annualtonnage reports filed with the Department of Mines, Minerals and Energy forthe year in which the credit was earned by the total number of coal miningjobs of such persons or operators as reflected in the annual tonnage reportsfor the year immediately prior to the year in which the credit was earned. Inno case shall the credit claimed exceed that amount set forth in subsection A.
G. The tax credit allowed under this section shall be claimed according tothe following schedule:
1. 50% of the credit allowed in tax year 1996 shall be claimed in tax year1999 and the remainder in tax year 2005.
2. 50% of the credit allowed in tax year 1997 shall be claimed in tax year2000 and the remainder in tax year 2006.
3. 75% of the credit allowed in tax year 1998 shall be claimed in tax year2001 and the remainder in tax year 2007.
4. 75% of the credit allowed in tax year 1999 shall be claimed in tax year2002 and the remainder in tax year 2008.
5. 100% of the credit allowed in tax year 2000 shall be claimed in tax year2003.
6. 100% of the credit allowed in tax year 2001 shall be claimed in tax year2004.
7. 100% of the credit allowed in tax year 2002 shall be claimed in tax year2005.
8. 100% of the credit allowed in tax year 2003 shall be claimed in tax year2006.
9. 100% of the credit allowed in tax year 2004 shall be claimed in tax year2007.
10. 100% of the credit allowed in tax year 2005 shall be claimed in tax year2008.
11. 100% of the credit allowed in tax year 2006 shall be claimed in tax year2009.
12. 100% of the credit allowed in tax year 2007 shall be claimed in tax year2010.
13. 100% of the credit allowed in tax year 2008 shall be claimed in tax year2011.
14. 100% of the credit allowed in tax year 2009 shall be claimed in tax year2012.
15. 100% of the credit allowed in tax year 2010 shall be claimed in tax year2013.
16. 100% of the credit allowed in tax year 2011 shall be claimed in tax year2014.
17. 100% of the credit allowed in tax year 2012 shall be claimed in tax year2015.
18. 100% of the credit allowed in tax year 2013 shall be claimed in tax year2016.
19. 100% of the credit allowed in tax year 2014 shall be claimed in tax year2017.
(1995, c. 775; 1996, c. 1034; 1999, c. 971; 2000, cc. 91, 1066; 2006, cc.788, 803.)