Fillable Form 306 - Virginia Coal Related Refundable Tax Credits

Form 306

2014 Virginia Coal Related

*VA0306114888*

Refundable Tax Credits

Coalfield Employment Enhancement Tax Credit and

Virginia Coal Employment and Production Incentive Tax Credit

For Calendar Year 2014. FISCAL YEAR filers: Enter beginning date ___________, _____ and ending date ____________, _____ and check here.

Name of Company

FEIN or Social Security Number

The Coalfield 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 2016 Virginia income tax returns

and claimed on the 1999 through 2019 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 filed, the excess credit will be applied to any other taxes imposed by the

Commonwealth of Virginia. The Department of Taxation will redeem any remaining credit as follows: 85% will be refunded directly and the remaining 15% will be

deposited in a regional economic development fund administered by the Coalfields Economic Development Authority.

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, 2016, 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 - Qualifications (See instructions).

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

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

Virginia Coal Employment and Production Incentive Tax Credit: Check this box if you meet the qualifications 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 Part III, 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 for which the Coalfield 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 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

Coal Credit Base (see instructions for definitions). 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 certificate 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)