RD208 - Combined Report on Corporate Tax Preferences and the Major Business Facility Job Tax Credit


Executive Summary:
Virginia Code § 58.1-202 requires the Tax Commissioner to submit an annual report detailing the total amount of corporate income tax relief provided in the Commonwealth by October 1 of each year. Acts of Assembly 2010, Chapter 379, amended Va. Code § 58.1-202 to require the Tax Commissioner to include summary information regarding the types of taxpayers who claim corporate income tax relief. In addition, this legislation now requires the Tax Commissioner to include the information previously reported on the major business facility job tax credit with the October 1 corporate preferences report. This is the first version of the combined report required by the 2010 amendments.

This report identifies the types of corporate taxpayers claiming corporate preferences during Taxable Year 2008 (“TY 2008”), including the filing status and the North American Industry Classification System (“NAICS”) code of such taxpayers. This report also identifies each tax credit claimed by corporations and includes the total dollar amount of income tax subtractions claimed cumulatively by corporations on TY 2008 returns processed by September 1, 2010. In addition to information about corporate preferences claimed for the 2008 taxable year, this report also identifies the number of corporate and individual taxpayers claiming the major business facility job tax credit for TY 2008 and the amount of such credit claimed through August 2010.

Because most corporations filed on a fiscal year basis, this report includes most, but not all, corporations that filed on a fiscal year basis for TY 2008. For example, a fiscal year beginning December 1, 2008 would end November 30, 2009, and the return may be filed under extension as late as September 15, 2010. 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.