58.1-439.9 - Tax credit for certain employers hiring recipients of Temporary Assistance for Needy Families.
§ 58.1-439.9. Tax credit for certain employers hiring recipients of TemporaryAssistance for Needy Families.
A. As used in this section:
"Qualified business employer" means an employer whose business employed notmore than 100 employees at the time that the employer first hired a qualifiedemployee.
"Qualified employee" means an employee who is a Virginia resident and is arecipient of Temporary Assistance for Needy Families (TANF) in accordancewith the provisions of Chapter 6 (§ 63.2-600 et seq.) of Title 63.2.
B. For taxable years beginning on and after January 1, 1999, a qualifiedbusiness employer shall be allowed a credit against the taxes imposed byArticles 2 (§ 58.1-320 et seq.), 6 (§ 58.1-360 et seq.), and 10 (§ 58.1-400et seq.) of Chapter 3 of this title in an amount equal to five percent of theannual salary actually paid during the taxable year to a qualified employee.However, the annual amount of the credit shall not exceed $750 per qualifiedemployee. Qualified business employers entitled to the credit pursuant tothis section shall provide written evidence, satisfactory to the TaxCommissioner, of employing such qualified employee for the taxable year inwhich the credit is claimed.
C. For purposes of this section, the amount of any credit attributable to apartnership, electing small business corporation (S corporation), or limitedliability company shall be allocated to the individual partners,shareholders, or members, respectively, in proportion to their ownership orinterest in such business entities.
D. Any credit not usable for the taxable year may be carried over for thenext three taxable years. The amount of credit allowed pursuant to thissection shall not exceed the tax imposed for such taxable year. No creditshall be carried back to a preceding taxable year. If a qualified businessemployer that is subject to the tax limitation imposed pursuant to thissubsection is allowed another credit pursuant to any other section of thisCode, or has a credit carryover from a preceding taxable year, such employershall be considered to have first utilized any credit allowed which does nothave a carryover provision, and then any credit which is carried forward froma preceding taxable year, prior to the utilization of any credit allowedpursuant to this section.
E. The amount of tax credits available under this section in any fiscalyear shall not exceed the amount appropriated for such year as provided inthe general appropriation act.
F. The State Board of Social Services shall promulgate regulations inaccordance with the Administrative Process Act (§ 2.2-4000 et seq.)establishing procedures for claiming the tax credit provided by this section.
(1998, c. 486; 2002, c. 747.)