An Act to amend the Code of Virginia by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.11, relating to employees with disabilities tax credit.
[H 1676]
Approved March 22, 1999
A tax credit in an amount equal to twenty percent of the first $6,000 of wages paid annually to each qualified employee during the first two taxable years of such employee's employment. The credit will apply after January 1, 1999, and before December 31, 2002.
Certification process
Form DEC must be filed and approved by the Virginia Department of Rehabilitative Services, the Virginia Department for the Blind and Vision Impaired or the United States Department of Veterans Affairs, whichever is applicable, before the employer completes the 307 form (PDF) for claiming the credit on the employer's Virginia State income tax return.
For an employer to apply for this tax credit, complete Form DEC (PDF) and file it for certification with the applicable agency (above) which provided the qualifying rehabilitative services. After certification, the DEC form will be returned to the employer for use in completing the 307 form (PDF). If not all qualifying employees received rehabilitative services from the same agency, complete a separate Form DEC for each agency, listing only those employees receiving qualifying services from that agency.
Process Overview for Claiming this Credit
File Form DEC (PDF) first. Employers claiming this credit must complete Part I of Form DEC and file it with the agency that provided rehabilitative services to the employee. That agency will complete Part II of the form and return it to the employer certifying that qualifying training was provided. Allow 60 days for Form DEC to be completed and returned to the employer.
Next, the employer will compute the credit on Form 307 (PDF) and claim it on his/her tax return. To File Form DEC and Form 307, in order to allow sufficient time for certification from the state or federal agency providing the rehabilitative services, the employer must file Form DEC at least 60 days with the certifying agency before the due date of the employer's income tax return so that the certification process will be completed in time to file the income tax return. When Form DEC (PDF) has been returned, complete Form 307 to compute this credit and claim it on the tax return. The employer may need to file for an extension of time to file or file an amended return if certification is not received before the due date of the income tax return. As a general rule, an amended return must be filed within three years from the due date of the original return.
Instructions for Completing Form 307 (PDF)
Instructions for completing Form 307 and Schedule 307A are on the back of each respective form. Qualifying employees with disabilities will be listed on Schedule 307A, then the credit will be transferred to Form 307.
Where to Get Help
For assistance, write the Virginia Department of Taxation, P. O. Box 5126, Richmond, VA 23220- 0126 or call (804) 367- 8036. To order forms or a copy of the regulations, call 1- 888-268-2829 (toll free outside Richmond), (804) 236- 2760 or (804) 236- 2761. Information can also be accessed by connecting to the web page at http://www.tax.state.va.us to obtain most Virginia income tax forms and additional tax information. Forms are also available from the office of the local Commissioner of the Revenue, Director of Finance or Director of Tax Administration.
Information regarding Form DEC for certification by the rehabilitation agency.
Procedure
Form DEC CERTIFICATION OF REHABILITATIVE 1999 SERVICES FOR THE VIRGINIA CREDIT FOR EMPLOYERS OF INDIVIDUALS WITH DISABILITIES
Under the provisions of Section 58.1- 439.11, Code of Virginia
Part I: To be completed by the employer
Section A - Employer Information
Complete this section to identify the employer of the individual to be listed in Section B below.
FIN __________________________________________________________________
Business Name ________________________________________________________
Street Address _________________________________________________________
City, State, ZIP Code_____________________________________________________
Section B - Employee Information
Complete this section to identify the employee Social Security Number________________
Full Name _____________________________________________________________
Street Address _________________________________________________________
City, State, ZIP Code ____________________________________________________
Section C - Employer certification
Under penalty of law, the information provided above is complete and correct.
Signature: _____________________________________________Date ____________
Print Name: ____________________________________________Phone __________
Part II: To be completed by the agency certifying the rehabilitative services Section A - Agency Information
Based on the records of the:
VIRGINIA DEPARTMENT OF REHABILITATIVE SERVICES
VIRGINIA DEPARTMENT FOR THE BLIND AND VISION IMPAIRED
UNITED STATES DEPARTMENT OF VETERANS AFFAIRS
The individual identified in Part I, Section B, above " has " has not completed rehabilitative services Date services began: ________________ Date services ended: ______________________ or " is currently completing rehabilitative services. or " no record of rehabilitative services has been located.
Section D - Certification of rehabilitative services
The person signing below certifies that Part II, Section A is correct.
Certified By: __________________________ Date: _________ Title: _______________________
Phone Number: _________________
Address, if different from the address listed in the Form DEC instructions_____________________
____________________________________________________________________________