HB 126

            
2020 SESSION

20100857D

HOUSE BILL NO. 126


Offered January 8, 2020


Prefiled December 16, 2019

A BILL to amend the Code of Virginia by adding in Article 3 of 
 Chapter 3 of Title 58.1, a section numbered 58.1-339.13, relating to income tax 
 credit for aquaculture oyster float purchases.
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Patrons-- Miyares and Lopez

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Referred to Committee on Agriculture, Chesapeake and Natural Resources

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Be it enacted by the General Assembly of Virginia:
 
 
1. That the Code of Virginia is amended by adding in Article 
 3 of Chapter 3 of Title 58.1, a section numbered 58.1-339.13 as follows:
 
 
� 58.1-339.13. 
 Tax credit for purchase of aquaculture oyster floats.
 
 
A. For 
 the purposes of this section, 
 "aquaculture oyster float" means a device that is (i) 
 purchased new by the taxpayer, 
 (ii) specifically 
 designed for the purpose of growing oysters at or under a 
 pier, and (iii) 
 constructed to be fully buoyant and facilitate the 
 growth of oysters for the width of the pier.
 
 
B. For 
 taxable years beginning on or 
 after January 1, 2020, but before January 1, 2025, a 
 taxpayer shall be allowed a nonrefundable 
 credit against the tax imposed by � 
 58.1-320 in an amount 
 equal to 100 percent of the purchase 
 price of aquaculture oyster floats purchased during the taxable year 
 that are actually in use.
 
 
C. The 
 amount of credit allowed under this section shall 
 not exceed the lesser of $500 or 
 the actual purchase price of the 
 aquaculture oyster floats.
 
 
D. The total 
 amount of tax credits available under this section for a calendar year shall 
 not exceed $50,000. In the event 
 that applications for such credits exceed $50,000 for any taxable year, the 
 Department shall allocate the credits on a pro rata basis. 
 
 
E. 
 The amount of the credit that may be claimed in any 
 single taxable year shall not exceed the total amount of tax imposed by this 
 chapter for that taxable year. If the amount of the credit allowed under this 
 section exceeds the taxpayers tax liability for the taxable year in which the aquaculture 
 oyster floats were purchased, the amount that 
 exceeds the tax liability may be carried over for credit against the income 
 taxes of the taxpayer in the next five 
 taxable years or until the 
 total amount of the tax credit has been taken, whichever is sooner.
 
 
F. 
 Credits granted to a partnership, limited liability 
 company, or electing small business corporation (S corporation) shall be 
 allocated to the individual partners, 
 members, or shareholders, respectively, in proportion to their ownership or 
 interest in such business entities.
 
 
G. 
 The Tax Commissioner shall develop guidelines for claiming the credit provided 
 by this section. Such guidelines shall be exempt from the provisions of the 
 Administrative Process Act (� 2.2-4000 et seq.).