HB1767: Machinery and Equipment Donation Grant Program; established.


HOUSE BILL NO. 1767
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the Joint Conference Committee
on February 23, 2013)
(Patron Prior to Substitute--Delegate Watson)
A BILL to amend the Code of Virginia by adding in Article 3 of Chapter 16 of Title 23 a section numbered 23-231.1:1, relating to Machinery and Equipment Donation Grant Program.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Article 3 of Chapter 16 of Title 23 a section numbered 23-231.1:1 as follows:

§ 23-231.1:1. Machinery and Equipment Donation Grant Program established.

A. As used in this section, unless the context requires a different meaning:

"Chancellor" means the Chancellor of the System.

"Machinery and equipment" means engines, machines, motors, mechanical devices, laboratory trainers, computers, printers, tools, parts, and similar machinery and equipment as set forth in guidelines developed by the System. "Machinery and equipment" includes specialized software required for the operation of machinery and equipment qualified for a grant pursuant to this section.

"Vocational school" means any entity that offers career or technical education administered by the Department of Education pursuant to § 22.1-227. "Vocational school" does not include instructional programs that are intended solely for recreation, enjoyment, or personal interest, or as a hobby, or courses or programs of instruction that prepare individuals to teach such pursuits.

B. From such funds as may be appropriated by the General Assembly and any gifts, grants, or donations from public or private sources, there is hereby created in the state treasury a special nonreverting fund to be known as the Machinery and Equipment Donation Grant Fund, hereafter referred to as "the Fund." The Fund shall be established on the books of the Comptroller. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely for the purposes of awarding grants for qualified donations of machinery and equipment to comprehensive community colleges and vocational schools. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the Chancellor.

C. 1. A business that donates new machinery and equipment in good working condition, purchased within the 12 months prior to the donation, to a comprehensive community college or vocational school shall be eligible to apply to the System for a grant from the Fund. Such grant shall be in an amount equal to 20 percent of the purchase price of the machinery or equipment, not to exceed an aggregate grant of $5,000 for all such donations during a calendar year.

2. In order to be eligible for a grant, the application shall include a written certification made by the donee comprehensive community college or vocational school that identifies the donee comprehensive community college or vocational school, the business donating the machinery or equipment, the date of the donation, and the number of units of each item of machinery and equipment donated. The certification shall also include a statement by the donee comprehensive community college or vocational school that the machinery and equipment was needed and can be utilized by the comprehensive community college or vocational school for teaching or training students, and that such machinery and equipment will be principally used in Virginia in teaching or training students.

3. Grants shall be issued in the order that each completed application is received. In the event that the amount of eligible grants requested in a fiscal year exceeds the funds available in the Fund, such grants shall be paid in the next fiscal year in which funds are available.

4. In consultation with the Department of Education and the State Council of Higher Education for Virginia, the System shall maintain and update as necessary on its website a list of vocational schools to which donations of machinery and equipment may qualify for a grant under this section. The System, in consultation with the State Council of Higher Education for Virginia, shall also develop guidelines setting forth the general requirements for qualifying for and applying for a grant under this section, including a description of the types of machinery and tools eligible for a grant pursuant to this section. Such guidelines shall be exempt from the Administrative Process Act (§ 2.2-4000 et seq.).

2.  That the provisions of this act shall not become effective unless an appropriation effectuating the purposes of this act is included in a general appropriation act passed during the 2013 Regular Session of the General Assembly, which becomes law.


HOUSE BILL NO. 1767
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the Senate Committee on Finance
on February 12, 2013)
(Patron Prior to Substitute--Delegate Watson)
A BILL to amend the Code of Virginia by adding in Chapter 1.1 of Title 23 a section numbered 23-9.14:3, relating to Machinery and Equipment Donation Grant Program.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Chapter 1.1 of Title 23 a section numbered 23-9.14:3 as follows:

§ 23-9.14:3. Machinery and Equipment Donation Grant Program established.

A. As used in this section, unless the context requires a different meaning:

"Community college" means any community college that is part of the Virginia Community College System.

"Council" means the State Council of Higher Education for Virginia.

"Machinery and equipment" means engines, machines, motors, mechanical devices, laboratory trainers, computers, printers, tools, parts, and similar machinery and equipment as set forth in guidelines developed by the Council.

"Vocational school" means any entity offering formal instructional programs of study (i) that operates as a nonprofit corporation or organization and that is certified to operate in Virginia by the Council or (ii) that offers career or technical education administered by the Department of Education pursuant to § 22.1-227. "Vocational school" does not include instructional programs that are intended solely for recreation, enjoyment, or personal interest, or as a hobby, or courses or programs of instruction that prepare individuals to teach such pursuits.

B. From such funds as may be appropriated by the General Assembly and any gifts, grants, or donations from public or private sources, there is hereby created in the state treasury a special nonreverting fund to be known as the Machinery and Equipment Donation Grant Fund, hereafter referred to as "the Fund." The Fund shall be established on the books of the Comptroller. Interest earned on moneys in the Fund shall remain in the Fund and be credited to it. Any moneys remaining in the Fund, including interest thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Moneys in the Fund shall be used solely for the purposes of awarding grants for qualified donations of machinery and equipment to community colleges and vocational schools. Expenditures and disbursements from the Fund shall be made by the State Treasurer on warrants issued by the Comptroller upon written request signed by the director of the Council.

C. 1. A business that donates new machinery and equipment in good working condition, purchased within the 12 months prior to the donation, to a community college or vocational school shall be eligible to apply to the Council for a grant from the Fund. Such grant shall be in an amount equal to 20 percent of the purchase price of the machinery or equipment, not to exceed an aggregate grant of $5,000 for all such donations during a calendar year.

2. In order to be eligible for a grant, the application shall include a written certification made by the donee community college or vocational school that identifies the donee community college or vocational school, the business donating the machinery or equipment, the date of the donation, and the number of units of each item of machinery and equipment donated. The certification shall also include a statement by the donee community college or vocational school that the machinery and equipment was needed and can be utilized by the community college or vocational school for teaching or training students, and that such machinery and equipment will be principally used in Virginia in teaching or training students.

3. Grants shall be issued in the order that each completed application is received. In the event that the amount of eligible grants requested in a fiscal year exceeds the funds available in the Fund, such grants shall be paid in the next fiscal year in which funds are available.

4. The Council shall maintain and update as necessary on its website a list of machinery and equipment that qualifies for a grant under this section and a list of vocational schools to which donations of machinery and equipment may qualify for a grant under this section. The Council shall also develop guidelines setting forth the general requirements for qualifying for and applying for a grant under this section.

2. That the provisions of this act shall not become effective unless an appropriation of general funds effectuating the purposes of this act is included in a general appropriation act passed by the 2013 Session of the General Assembly, which becomes law.


HOUSE BILL NO. 1767
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the House Committee on Finance
on January 30, 2013)
(Patron Prior to Substitute--Delegate Watson)
A BILL to amend the Code of Virginia by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.12:11, relating to income tax credits for donations of machinery and equipment to community colleges and vocational schools.

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 58.1-439.12:11 as follows:

§ 58.1-439.12:11. Tax credit for donations of machinery and equipment to community colleges and vocational schools.

A. As used in this section, unless the context requires a different meaning:

"Community college" means any community college that is a part of the Virginia Community College System.

"Council" means the State Council of Higher Education for Virginia.

"Machinery and equipment" means engines, machines, motors, mechanical devices, laboratory trainers, computers, printers, tools, parts, and similar machinery and equipment as set forth in guidelines developed by the Department.

"Vocational school" means any entity, offering formal instructional programs of study, (i) that is certified to operate in Virginia by the Council or that is exempt from such certification requirement and whose instructional programs do not lead to an associate or higher level degree, or (ii) that offers career or technical education administered by the Department of Education pursuant to § 22.1-227. "Vocational school" does not include instructional programs that are intended solely for recreation, enjoyment, personal interest, or as a hobby, or courses or programs of instruction that prepare individuals to teach such pursuits.

B. For taxable years beginning on or after January 1, 2013, but before January 1, 2018, any business that during the taxable year donates new machinery and equipment in good working condition, purchased within the last 12 months by the business, to a community college or vocational school that will be principally used in Virginia in teaching or training students of such college or school shall be allowed a credit against any tax due under Article 2 (§ 58.1-320 et seq.) or Article 10 (§ 58.1-400 et seq.) in an amount equal to 20 percent of the purchase price paid by the business to acquire the machinery and equipment but not to exceed an aggregate credit of $5,000 for all such donations of the business during such year.

C. In order to be allowed the credit, the business shall submit an application to the Department. The application shall include a written certification made by the donee community college or vocational school that identifies the donee community college or vocational school, the business donating the machinery and equipment, the date of the donation, and the number of units of each item of machinery and equipment donated. The certification shall also include a statement by the donee community college or vocational school that the machinery and equipment will be principally used in Virginia in teaching or training students of the donee community college or vocational school. The Department shall determine whether an applicant has met the requirements of this section and shall issue the tax credit to those businesses meeting such requirements. The Department shall not issue more than $1 million in tax credits pursuant to this section in any fiscal year of the Commonwealth and shall not issue any tax credits after June 30, 2018. The Department shall develop procedures to issue tax credits in the event that applications for tax credits exceed $1 million for the fiscal year.

D. The amount of the credit claimed shall not exceed the total amount of tax imposed by this chapter upon the business for the taxable year. Any credit not usable for the taxable year for which the credit was first allowed may be carried over for credit against the income taxes of the business in the next five succeeding taxable years or until the total amount of the tax credit has been taken, whichever is sooner.

E. Credits granted to a partnership, limited liability company, or electing small business corporation (S corporation) shall be allocated to the individual partners, members, or shareholders, respectively, in proportion to their ownership or interest in such business entities.

F. The Department shall maintain and update as necessary on its website a list of machinery and equipment that qualifies for the credit under this section. The Council shall maintain and update as necessary on its website a list of vocational schools to which donations of machinery and equipment may qualify for the credit under this section.

G. The Tax Commissioner shall develop guidelines implementing the provisions of this section. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).

HOUSE BILL NO. 1767

Offered January 9, 2013
Prefiled January 8, 2013
A BILL to amend the Code of Virginia by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.12:11, relating to income tax credits for donations of machinery and equipment to community colleges and vocational schools.
Patron-- Watson

Committee Referral Pending

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 58.1-439.12:11 as follows:

58.1-439.12:11. Tax credit for donations of machinery and equipment to community colleges and vocational schools.

A. As used in this section, unless the context requires a different meaning:

"Community college" means any community college that is a part of the Virginia Community College System.

"Council" means the State Council of Higher Education for Virginia.

"Machinery and equipment" means engines, machines, motors, mechanical devices, laboratory trainers, computers, printers, tools, parts, and similar machinery and equipment as set forth in guidelines developed by the Department.

"Vocational school" means any entity offering formal instructional programs of study (i) that is certified to operate in Virginia by the Council or that is exempt from such certification requirement and whose instructional programs do not lead to an associate or higher level degree, or (ii) that offers career or technical education administered by the Department of Education pursuant to 22.1-227. "Vocational school" does not include instructional programs that are intended solely for recreation, enjoyment, personal interest, or as a hobby, or courses or programs of instruction that prepare individuals to teach such pursuits.

B. For taxable years beginning on or after January 1, 2013, but before January 1, 2018, any business that during the taxable year donates new machinery and equipment or like-new machinery and equipment in good working condition to a community college or vocational school that will be principally used in Virginia in teaching or training students of such college or school shall be allowed a credit against any tax due under Article 2 ( 58.1-320 et seq.) or Article 10 ( 58.1-400 et seq.) in an amount equal to 20 percent of the purchase price paid by the business to acquire the machinery and equipment but not to exceed an aggregate credit of $5,000 for all such donations of the business during such year.

C. In order to claim the credit established under this section, the business shall attach a written certification made by the donee community college or vocational school to the business's income tax return. The written certification prepared by the donee community college or vocational school shall identify the donee community college or vocational school, the business donating the machinery and equipment, the date of the donation, and the number of units of each item of machinery and equipment donated. The certification shall also include a statement by the donee community college or vocational school that the machinery and equipment will be principally used in Virginia in teaching or training students of the donee community college or vocational school.

D. The amount of the credit claimed shall not exceed the total amount of tax imposed by this chapter upon the business for the taxable year. Any credit not usable for the taxable year for which the credit was first allowed may be carried over for credit against the income taxes of the business in the next five succeeding taxable years or until the total amount of the tax credit has been taken, whichever is sooner.

E. Credits granted to a partnership, limited liability company, or electing small business corporation (S corporation) shall be allocated to the individual partners, members, or shareholders, respectively, in proportion to their ownership or interest in such business entities.

F. The Department shall maintain (and update as necessary) on its website a list of machinery and equipment that qualifies for the credit under this section. The Council shall maintain (and update as necessary) on its website a list of vocational schools to which donations of machinery and equipment may qualify for the credit under this section.

G. The Tax Commissioner shall develop guidelines implementing the provisions of this section. Such guidelines shall be exempt from the provisions of the Administrative Process Act ( 2.2-4000 et seq.).