Be it enacted by the General Assembly of Virginia:
1. That § 58.1-439.1 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-439.1. Clean fuel vehicle job creation tax credit.
A. For taxable years beginning on or after January 1, 1996, through
December 31, 2006 2011, a corporation shall be eligible
for a credit against the tax levied pursuant to §
58.1-400 equal to $700 $900 for each job which is
created in either (i) the manufacture of components for vehicles
designed to operate on a clean special fuel, (ii) the manufacture of
components used to convert vehicles designed to operate on gasoline or
diesel fuel to operate on clean special fuel, (iii) the conversion of
vehicles designed to operate on gasoline or diesel fuel to operate on
clean special fuel, or (iv) the manufacture of vehicles designed
to operate on clean special fuel, or (v) the manufacture of
components designed to produce, store, and dispense hydrogen as a
vehicle fuel. The credit shall be allowed in the taxable year in
which the job is created and in each of the two succeeding years in
which the job is continued.
B. For purposes of this section, "clean special fuel" shall have the same meaning as provided in § 46.2-749.3 and "vehicle" shall have the same meaning as provided in U.S. Internal Revenue Code §§ 179A and 30.
C. For purposes of this section, "job" shall mean the full-time employment of an individual in Virginia by a corporation for at least forty hours per week during at least forty weeks during the calendar year whose primary work activity is related directly to either (i) the manufacture of the major components of the energy storage, energy supply or engine, motor, and power train mechanisms unique to a vehicle fueled by clean special fuels; (ii) the manufacture of components uniquely used to convert vehicles designed to operate on gasoline or diesel fuel to operate on clean special fuel; (iii) the conversion of vehicles designed to operate on gasoline or diesel fuel to operate on clean special fuel; or (iv) the manufacture of vehicles designed to operate on clean special fuel.
D. To qualify for the tax credit provided in subsection A of this section, a corporation must demonstrate (i) that a job was created during the taxable year for which the credit is claimed or was continued from the previous taxable year in which a credit was claimed and (ii) the employment level in jobs defined in subsection C of this section in the taxable year for which the credit is first claimed has increased in comparison to the previous taxable year.
E. Any tax credit not used in the taxable year of job creation or continuation may be carried over for credit against the corporation's income tax in the five succeeding taxable years until the total credit amount is used.
F. In case of a partnership or limited liability company, the credit shall be allocated to the corporate partners or corporate members in proportion to their ownership or interest in the partnership or limited liability company.
G. A corporation shall not be eligible for a tax credit pursuant to this section if such corporation is allowed a major business facility job tax credit pursuant to § 58.1-439.
2. That the provisions of this act shall be applicable for taxable years beginning on or after January 1, 2006.