Source: http://register.dls.virginia.gov/details.aspx?id=1860
Timestamp: 2019-07-20 18:35:53
Document Index: 501803989

Matched Legal Cases: ['§ 2', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58', '§ 54', '§ 9902', '§ 63', '§ 63', '§ 63', '§ 63', '§ 63', '§ 63']

Vol. 25 Iss. 23 (Final Regulation) 22VAC40-41, Neighborhood Assistance Tax Credit Program July 20, 2009
REGISTRAR'S NOTICE: The State Board of Social Services is claiming an exemption from the Administrative Process Act in accordance with § 2.2-4006 A 4 a of the Code of Virginia, which excludes regulations that are necessary to conform to changes in Virginia statutory law where no agency discretion is involved. The State Board of Social Services will receive, consider and respond to petitions by any interested person at any time with respect to reconsideration or revision.
Title of Regulation: 22VAC40-41. Neighborhood Assistance Tax Credit Program (amending 22VAC40-41-10, 22VAC40-41-20, 22VAC40-41-40, 22VAC40-41-50, 22VAC40-41-55, 22VAC40-41-60).
Agency Contact: J. Mark Grigsby, Director, Office of Community Services, Department of Social Services, 7 North Eighth Street, Richmond, VA 23219, telephone (804) 726-7922, FAX (804) 726-7946, or email james.grigsby@dss.virginia.gov.
This regulatory action implements Chapters 463 and 585 of the 2008 Acts of Assembly and Chapters 10 and 851 of the 2009 Acts of Assembly. The proposed amendments (i) update obsolete Code of Virginia citations that resulted from the Neighborhood Assistance Program statutes being moved from Title 63.2 of the Code of Virginia, pertaining to Welfare (Social Services), to Title 58.1, pertaining to Taxation; (ii) change a number of definitions to reflect statutory changes; and (iii) reflect that an organization providing educational services applies to the Superintendent of Public Instruction, not to the Commissioner of the Department of Social Services.
"Business firm" means any corporation, partnership, electing small business (Subchapter S) corporation, limited liability company, or sole proprietorship authorized to do business in this Commonwealth subject to tax imposed by Articles 2 (§ 58.1-320 et seq.) and 10 (§ 58.1-400 et seq.) of Chapter 3, Chapter 12 (§ 58.1-1200 et seq.), Article 1 (§ 58.1-2500 et seq.) of Chapter 25, or Article 2 (§ 58.1-2620 et seq.) of Chapter 26 of Title 58.1 of the Code of Virginia.
"Contracting services" means the provision, by a business firm licensed by the Commonwealth of Virginia as a contractor under Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1 of the Code of Virginia, of labor or technical advice to aid in the development, construction, renovation, or repair of (i) homes of impoverished people or (ii) buildings used by neighborhood organizations.
"Education" means any type of scholastic instruction or scholarship scholastic assistance to an individual who is impoverished.
"Impoverished people" means, for neighborhood organizations not providing education services, people in Virginia with incomes at or below 150% of the poverty guidelines as defined by the United States Office of Management and Budget as published in the Federal Register (62 FR 10856), and as updated and republished annually in the Federal Register updated periodically in the Federal Register by the U.S. Department of Health and Human Services under the authority of 42 USC § 9902(2).
"Professional services" means any type of personal service to the public which requires as a condition precedent to the rendering of such service the obtaining of a license or other legal authorization and shall include, but not be limited to, the personal services rendered by medical doctors, dentists, architects, professional engineers, certified public accountants and, attorneys-at-law, and veterinarians.
A. The purpose of the Neighborhood Assistance Program is to encourage business firms and individuals to make donations to neighborhood organizations for the benefit of impoverished people.
B. Neighborhood organizations wishing that do not provide education services and that wish to become an approved organization must submit an application and provide the following information to the commissioner: Neighborhood organizations that provide education services must submit an application to the Superintendent of Public Instruction. The application submitted to the Superintendent of Public Instruction must comply with regulations or guidelines adopted by the Board of Education. The application submitted to the commissioner must contain the following information:
1. A description of their eligibility as a neighborhood organization, the programs being conducted, the impoverished people assisted, the estimated amount that will be donated to the programs, and plans for implementing the programs.
1. Applicants must have been in operation as a viable entity, providing neighborhood assistance for impoverished people, for at least 12 months.
2. Applicants must be able to demonstrate that at least 50% of the total people served and at least 50% of the total expenditures were for impoverished people.
D. E. The value assigned for donated rent/lease of the approved organization's facility must be reasonable and cannot exceed the prevailing square footage rental charge for comparable property.
E. F. The value of professional and contracting services is determined as follows:
2. When a sole proprietor, partner in a partnership, or member of a limited liability company renders professional or contracting services to an approved organization, the value of the professional or contracting services shall not exceed the lesser of the reasonable cost for similar services from other providers or the maximum amount set forth in §§ 63.2-2004 58.1-439.22 and 63.2-2005 58.1-439.23 of the Code of Virginia.
A. As provided by § 63.2-2003 58.1-439.21 of the Code of Virginia, a business firm shall be eligible for a tax credit based on the value of the money, property, professional services, and contracting services donated by the business firm during its taxable year to an approved organization.
C. Health care professionals that meet certain conditions, as specified in § 63.2-2004 C 58.1-439.22 C of the Code of Virginia, shall be eligible for a tax credit based on the time spent in providing health care services for such clinic.
D. All donations must be made directly to the approved organization without any conditions or expectation of monetary benefit. Discounted donations and bargain sales are not allowable donations for the Neighborhood Assistance Program.
E. Granting of tax credits shall conform to the minimum and maximum amounts prescribed in § 63.2-2003 58.1-439.21 of the Code of Virginia.
F. Credits granted to a partnership, electing small business (Subchapter S) corporation, or limited liability company shall be allocated to their individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.
G. The approved organization and donor shall complete a certification on a form prescribed by the Department of Social Services. The certification shall identify the date, type, and value of the donation.
H. All certifications must be submitted to the Department of Social Services within four years of the date of donation.
I. Upon receipt and approval of the certification, the commissioner shall issue a tax credit certificate to the business.
A. As provided in § 63.2-2006 58.1-430.24 of the Code of Virginia, an individual shall be eligible for a tax credit for a cash donation to an approved organization.
B. Such donations are subject to the minimum and maximum amounts and other provisions set forth in § 63.2-2006 58.1-439.24 of the Code of Virginia.
VA.R. Doc. No. R09-1987; Filed June 26, 2009, 1:20 p.m.