Port Credits

The amount of the credit is $25 per 20-foot equivalent unit (TEU) or 16 tons of noncontainerized cargo or 1 unit of roll-on/roll-off cargo moved by barge or rail rather than trucks or other motor vehicles on the Commonwealth's highways. To receive this credit, an international trade facility (ITF) must apply to Virginia Tax. We cannot issue more than $500,000 in tax credits in any fiscal year. Virginia Tax will determine the allowable credit amount for the taxable year and provide a written certification of the credit amount to each taxpayer. Taxpayers can claim this credit against the individual income tax, the corporate income tax, the tax on trusts, the bank franchise tax, the insurance premiums tax, and the tax on public service corporations. Any unused tax credits may be carried over for 5 taxable years.

The ITF must apply by Apr. 1 using Form BRU. Submitting a late application will disqualify you for the credit. All applications must be sent to the Virginia Department of Taxation, Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-0715. We will send a letter by June 30 to certify the credit. You must have this certification from the Tax Credit Unit to claim the Barge and Rail Usage credit on your tax return.

The amount of the credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company (LLC) must be allocated to the individual partners, shareholders, or members in proportion to their ownership or interest within the business entity using Form PTE within 30 days after the credit is granted.

• Guidelines
• Reference: Virginia Code 58.1-439.12:09

An income tax credit is allowed for either capital investment in an international trade facility (ITF) or increasing jobs related to an international trade facility. To qualify, an ITF must show at least a 10% increase in shipments through VPA ports in Virginia. The amount of the credit would be equal to $3,000 per new qualified full-time employee that results from increased qualified trade activities by the taxpayer or two percent of the amount of capital investment made by the taxpayer to facilitate the increased eligible trade activities. Any company that creates jobs or makes capital investments in a "tobacco-dependent locality" would be permitted to claim a port tax credit equal to $6,000 per job created or 4% of qualified capital investment expenses, to the extent that money is available in the Tobacco-Dependent Localities Fund. If the amount of credits allowable for companies in tobacco-dependent localities exceeds the amount deposited in the Fund, the credits would be allocated to taxpayers on a pro rata basis by Virginia Tax. Taxpayers can elect to claim either credit, but cannot claim both credits in the same taxable year.

A qualified company that claims employees for the Major Business Facility Job Tax Credit or the International Trade Facility Tax Credit cannot receive a Port of Virginia Economic and Infrastructure Development Zone Grant (POV Zone Grant) for those previously claimed jobs.

No more than $1.25 million in tax credits can be issued in any fiscal year. If the amount of tax credits requested exceeds $1.25 million, the credits would be allocated proportionately among all qualified taxpayers. Virginia Tax will determine the credit amount for the taxable year and provide a written certification to each taxpayer. The amount of the credit will be limited to 50% of the taxpayer's tax liability for the taxable year. Any unused credit amount can be carried forward for 10 years.

The business must apply by Apr. 1 using Form ITF. Submitting a late application will disqualify you for the credit. All applications must be sent to the Virginia Department of Taxation, Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-0715. We will send a letter to certify this credit; you must have this certification to claim this credit on your tax return. 

The amount of the credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company (LLC) must be allocated to the individual partners, shareholders, or members in proportion to their ownership or interest within the business entity using Form PTE within 30 days after the credit is granted.

• Guidelines
• Reference: Virginia Code 58.1-439.12:06

You may qualify for this credit if:

You’re a business who increases your shipments or deliveries received through a Virginia port by 5% or more in the last calendar year. Your business must be in 1 of these industries:

• agriculture
• manufacturing or a distributor of manufactured goods
• mineral or gas extraction

To qualify, your “base volume” (the amount of goods you shipped or received through a Virginia port) must be 75 net tons or 10 TEUs of cargo. (1 TEU = 16 short tons, or 1 piece of roll of/roll on cargo.) Your credit is based on the increase in volume over your base volume.

What is it?

An income tax credit equal to $50 per TEU that you increase your port volume by. The Virginia Port Authority administers the credit.

Claim the credit against the following taxes administered by Virginia Tax:

• individual income tax
• corporation income tax

Is there a cap?

Yes. The Virginia Port Authority can issue no more than $3.2 million in Port Volume Increase credits per year. 

To apply for this credit:

The Virginia Port Authority administers this credit. Visit their website and follow their application procedures. Applications are due by March 1 of the calendar year after the year you increase your port volume. Late applications are not eligible for the credit.

Using the credit:

To claim the credit, complete the following and attach it to your return:

• Schedule CR, for individual and fiduciary returns
• Form 500CR, for corporate returns

The credit claimed can’t be greater than your tax liability. Carry forward any unused credits for 5 years.. 

Transferring the credit

The credit is transferrable. Credits issued for tax year 2018 and after can be transferred to another taxpayer, so long as the transfer takes place within 1 year of the credit being earned

• File Form PVT within one year from the date that your credit was issued by the Virginia Port Authority.
• Only transferees may claim the credit retroactively by amending a prior year return that is still within the statute of limitations (SOL).  SOL is defined as a return whose original due date was no more than three years ago.  For example:  If your 2016 return was due April 15, 2017, you have until April 15, 2020 to file an amended return.

For more information, see:

• Va Code § 58.1-439.12:10
• Port Volume Increase Tax Credit Guidelines