Form 306 - Virginia Coal Related Refundable Tax Credits



Form 306

2007 Virginia Coal Related

Refundable Tax Credits

Coalﬁ eld Employment Enhancement Tax Credit and

Virginia Coal Employment and Production Incentive Tax Credit

For calendar year 2007. FISCAL YEAR ﬁ lers: Enter beginning date ___________, _____ and ending date ____________, _____ and check here.

Name of Company

FEIN or Social Security Number

The Coalﬁ eld Employment Enhancement Tax Credit provides a composite tax credit for coal mined in Virginia and coal bed methane gas produced in Virginia

based on a per ton or per million BTU rate and an employment factor. This credit will be earned and reported on the 1996 through 2014 Virginia income tax returns

and claimed on the 1999 through 2017 income tax returns based on the credit redemption schedule in the Form 306 instructions; it may not be claimed prior to

the 1999 return. If the credit amount exceeds the tax on the income tax return when ﬁ led, the excess credit will be applied to any other taxes imposed by the State

of Virginia. The Department of Taxation will redeem any remaining credit as follows: 90% will be refunded directly and the remaining 10% will be deposited in a

regional economic development fund administered by the Coalﬁ elds Economic Development Authority. For credits earned for taxable years beginning on or after

January 1, 2002, the refundable excess will be reduced to 85% with the remaining 15% being deposited into the regional economic development fund.

The Virginia Coal Employment and Production Incentive Tax Credit may be allocated between a qualifying electricity generator and qualifying person with

an economic interest in coal. The allocation of this credit may not exceed $3 per ton. All credits earned on or after January 1, 2006 or prior to July 1, 2011 which

are allocated to persons with an economic interest in coal may be redeemed by the Tax Commissioner if the credits exceed the taxpayer’s state tax liability for

the applicable taxable year.

Part I - Qualiﬁ cations (See instructions.)

Coal Credit: Check this box if you meet all qualiﬁ cations for this credit.

Coal Bed Methane Credit: Check this box if you meet the qualiﬁ cation for this credit.

Virginia Coal Employment and Production Incentive Tax Credit: Check this box if you meet the qualiﬁ cations for this credit.

If you do not qualify directly for this credit, but qualify by receiving a credit distribution from a pass-through entity, go to Line 10.

PART II - Tons Of Coal Sold (Attach a separate schedule if additional space is needed).

Show the total tonnage of each type of qualifying coal for the taxable year on which the Coalﬁ eld Employment Enhancement Tax Credit is to be computed

in Part III. See instructions.

Col. A

Col. B

Col. C

Underground

Surface Mined

Seam 36” or Less

Seam over 36”

1. Enter the number of tons of qualifying coal sold during the taxable year.

2. Enter, from Schedule 306A, the number of tons of qualifying coal sold during

the taxable year for which the purchaser is eligible for a Coal Cogenerator credit

or the Virginia Coal Employment and Production Incentive Tax Credit.

3. Subtract Line 2 from Line 1.

Enter the result below in the “Number of Tons Sold” column.

Part III - Credit Computation

A. Coal Credit Base (see instructions for deﬁ nitions). Enter the qualifying tonnage on which the coal credit base is computed. If claiming this credit and you also sold

qualifying tonnage and issued a certiﬁ cate to the purchaser, complete Schedule 306A. Do not include amounts from Schedule 306A, Column E, in this section.

Number of Tons Sold

Credit Earned

1. Underground mining method: Seam thickness 36” or less:

Enter amount from Part II, Line 3, Col. A, above.

$2.00

2. Underground mining method: Seam thickness over 36”

Enter amount from Part II, Line 3, Col. B, above.

$1.00

3. Coal mined using surface mining method

Enter amount from Part II, Line 3, Col. C, above.

$0.40

4. Total Credit Base (add Lines 1, 2 and 3)

B. Employment Factor (see instructions for deﬁ nitions)

5. Total number of Virginia coal mining jobs for the calendar year ending within the taxable year.

6. Total number of Virginia coal mining jobs for the preceding calendar year.

7. Employment Factor (divide Line 5 by Line 6). Do not enter more than 100%.

C. Credit Computations and Credit Distributions Earned for 2007 (report for credit on 2010 return)

8. Tentative coal mining credit (multiply Line 4 by the percentage on Line 7).

9. Coal bed methane gas producer credit ($.01 per million BTU of coal bed methane gas sold in Virginia).

10. Credit distributions from pass-through entities (see instructions).

10.

11. 2007 Coalﬁ eld Employment Enhancement Tax Credit earned. Enter the total of Lines 8, 9 and 10 here*.

* Also enter this amount on the Coalﬁ eld Enhancement Tax Credit earned line of your tax return or credit schedule.

11.

D. Application of Coal Related Tax Credits Earned [from 2007 Sch. 306B (Form 306)]

12. (a) Full tax credit: Enter amount from 2007 Schedule 306B (Form 306), Line 9(a) or 9(b).

12(a).

(b) Full tax credit: Enter amount from 2007 Schedule 306B (Form 306), Line 14(a) or 14(b).

12(b).

13. (a) Excess tax credit (85%): Enter amount from 2007 Schedule 306B (Form 306), Line 11.

13(a).

(b) Excess tax credit (90%): Enter amount from 2007 Schedule 306B (Form 306), Line 16.

13(b).

14. Total Credit Allowable This Year: Add Lines 12(a), 12(b), 13(a) and 13(b).

14.

Va. Dept. of Taxation

306 W

Rev 12/07

Page 1

Form 306 - Virginia Coal Related Refundable Tax Credits - 2007

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