HB2360: Income tax, corporate; tax credit to employers that provide employee transportation assistance.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.12:06 as follows:
§ 58.1-439.12:06. Employee transportation assistance tax credit.
A. As used in this section, unless the context requires a different meaning:
?Qualified employee? means an employee of the employer eligible for a credit pursuant to this section in a full-time position requiring a minimum of 1,680 hours in the entire normal year of the employer's business operations.
B. For taxable years beginning on and after January 1, 2012, any employer shall be allowed a credit against the taxes imposed by Articles 2 (§ 58.1-320 et seq.) and 10 (§ 58.1-400 et seq.) in an amount equal to 25 percent of all expenditures paid or incurred by the employer during the taxable year for transportation assistance provided to qualified employees for travel to and from the employer's business operations.
C. For purposes of this section, the amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.
D. Any credit not usable for the taxable year may be carried over for the next three taxable years. The amount of credit allowed pursuant to this section shall not exceed the tax imposed for such taxable year. No credit shall be carried back to a preceding taxable year. If an employer that is subject to the tax limitation imposed pursuant to this subsection is allowed another credit pursuant to any other section of this Code, or has a credit carryover from a preceding taxable year, such employer shall be considered to have first utilized any credit allowed that does not have a carryover provision, and then any credit that is carried forward from a preceding taxable year, prior to the utilization of any credit allowed pursuant to this section.