Instructions For Form Edc, Application For Qualified Equity And Subordinated Debt Investment Tax Credit printable pdf download

Instructions for Form EDC, Application for Qualified Equity and

Subordinated Debt Investment Tax Credit

When to Submit Application

IMPORTANT

Submit Form EDC as soon as possible after receiving all

Taxpayers who do not receive notification of allowable credit

QBA certifications for qualified investments made during

amounts before their Virginia income tax return due date

2007 and as soon as possible BEFORE your tax filing

must file the appropriate return extension request or file their

deadline. Taxpayers making a qualified investment during

regular return without the credit and then file an amended

calendar year 2007, MUST submit this application and all

tax return after receipt of notification of the allowable credit

supporting documentation no later than April 1, 2008.

amount to claim the tax credit.

What to Attach

Required Investor Holding Period

Attach the following items:

Equity and/or subordinated debt received in connection with

• A copy of the qualified business certification (issued to

a qualified business investment must be held by the taxpayer

the business by Department of Taxation);

for at least three calendar years following the calendar year

• A business statement, on the business' letterhead,

for which the credit is allocated except in any of the following:

describing:

the liquidation of the qualified business issuing the equity, a

• the investment by amount, type and date; and

merger, consolidation or other acquisition of the business

• verification that the investment meets the definition of

with or by a party not affiliated with the business or, death of

a qualified investment for purposes of claiming the

the taxpayer.

credit pursuant to Code of Virginia Section 58.1-339.4.

Title 23 of Virginia Administrative Code (VAC)

Penalty for Not Meeting the Required Holding Period

10-110-225 et seq. provides regulations on how this

If the required holding period is not met, the taxpayer must

credit applies.

forfeit the unused credit amount and will be assessed for

the credit utilized, to which shall be added interest, computed

Where to Submit Application

at the rate of 1% per month, compounded monthly from the

Submit Form EDC and attachments to the Department of

date the tax credits were claimed.

Taxation, ATTN: Tax Credit Unit, P.O. Box 715,

Richmond, VA 23218-0715 or you may fax it to 804-786-

Pass-Through Entities

2800.

Each pass-through entity must File Form PTE with the

Department of Taxation within 30 days after the credit is

What to Expect from the Department of Taxation

granted. This information should be sent to: Department

All applicants should receive a letter acknowledging their

of Taxation, ATTN: Tax Credit Unit, P.O. Box 715,

EDC application. If you have applied by the April 1 deadline

Richmond, VA 23218-0715 or you may fax it to

and have not received an acknowledgment letter from us

804-786-2800.

by May 15 please call the Tax Credit Unit at 804-786-2992.

The Virginia Department of Taxation will review all

All pass-through entities distributing this credit to its owner(s),

applications for completeness and notify taxpayers of any

shareholders, partners or members must give each a

errors by June 1. If any additional information is needed, it

Schedule VK-1, Owner’s Share of Income And Virginia

must be provided no later than June 15 in order for the

Modifications And Credits.

investment to be considered for the tax credit. All eligible

taxpayers shall be notified by June 30 as to the allowable

Where To Get Help

credit amount that may be claimed for the qualified

Write the Department of Taxation, ATTN: Tax Credit Unit,

investment. If the total eligible credit requests received

P. O. Box 715, Richmond, VA 23218-0715 or call

exceed the Commonwealth's annual $3 million limitation,

804-786-2992. To order forms or a copy of regulations call

each taxpayer shall be granted a pro rata amount as

804-440-2541. Visit to obtain most

determined by the department. The amount of credit that is

Virginia income tax forms and additional tax information.

deducted from the requested amount via proration is lost.

Forms are also available from your local Commissioner of

the Revenue, Director of Finance or Director of Tax

What Does the Taxpayer Need to Do

Administration.

Upon receiving notification of the allowable credit amount,

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taxpayers may claim the allowable credit amount on the

applicable Virginia income tax return and compute any

Virginia Tax Bulletin 00-5, dated July 31, 2000, and Title

carryover credit amount.

23 of Virginia Administrative Code (VAC) 10-110-225

provide additional information on this credit. To obtain

this bulletin, see "Where To Get Help" above.

Instructions For Form Edc, Application For Qualified Equity And Subordinated Debt Investment Tax Credit

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