RD241 - 2009 Corporate Tax Preference Report


Executive Summary:
Acts of Assembly 2009, Chapter 24, amended Section 58.1-202 of the Code of Virginia, which requires the Tax Commissioner to file an annual report detailing the total amount of corporate income tax relief provided in the Commonwealth due October 1. This is the first version of the report under the 2009 amendment. It contains more complete data for the reports issued in December of 2008 and April of 2009 under the old reporting process. The 2009 amendment eliminated the December preliminary report and extended the final report due date from April to October. Reports will only be issued on October 1 in future years.

This report identifies each tax credit claimed by corporations and also includes the total dollar amount of income tax subtractions claimed cumulatively by corporations on Taxable Year 2007 returns processed through September 1, 2009. The report included many, but not all, corporations that file on a fiscal year basis. For example, a fiscal year beginning December 1, 2007, would end November 30, 2008, and the return may be filed under extension as late as September 15, 2009. TAX needs several months to process returns and resolve errors before complete data for a taxable year are available. The data capturing process includes various tests for data integrity and TAX must manually review and correct any discrepancies before the information is available.