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Virginia Major Business Facility Taxable Year

Form 304 Job Tax Credit Application _________ *VA0304122888*
A separate Form 304 must be completed for each major business facility or qualified job expansion.
Fiscal Year Filers: Begin Date , and End Date
Name of Company FEIN

Street Address City, State, and ZIP Code

Entity Type: (Check One) C Corporation S Corporation Partnership LLC Other
Have you applied for any other credit(s) this year? If yes, indicate which credits.
If you applied for a Green Job Creation Tax Credit, International Trade Facility Tax Credit, or Enterprise Zone Creation Grant for the same jobs
– STOP – you do not qualify for the Major Business Facility Job Tax Credit.
1a. Enter the North American Industry Classification System (NAICS) Code for the company’s primary business in Virginia

1b. Enter the Industry Description
2a. Check here if two or more affiliated companies have aggregated the number of jobs that were created for purposes of qualifying for this credit, and
enclose a separate schedule showing the name of each affiliated company, the Virginia Account Numbers, the Federal Employer Identification
Numbers, the NAICS codes, and the voting percentages (as defined in Va. Code § 58.1-439(S)).
2b. Qualifying Threshold Economically Distressed Area/Enterprise Zone
Tier 1 100 (for expansions prior to January 1, 2010) Tier 2 50 (for expansions prior to January 1, 2010)
Tier 1 50 (for expansions on or after January 1, 2010) Tier 2 25 (for expansions on or after January 1, 2010)

2c. This major business facility is located in the city / county of , Virginia.
Date facility established or expanded This is a new facility. This is an expanded facility.
Number of qualifying employees prior to first expansion (See instructions)
2d. Date range from which the credit is based (minimum 24 months, maximum 35 months) .
Expansion Period (12 months) ________________________ Credit Year ________________________
Filing Sequence Credit Year Year 2 Year 3 Year 4 Year 5 Year 6
You must include Schedule A and the Schedule A Worksheet for all filing years.
2e. Have you had an expansion before? Yes –or– No. If yes, what year ____________ and number on Line 3a for that expansion ________?
3. Number of Qualifying Employees (See instructions):
If completing this form for the credit year (the first taxable year following the taxable year in which the major business facility was established or
expanded), complete Schedules A and B, then enter the total on Line 3a.
For each of the 5 taxable years after the credit year, enter on Line 3a the number of qualifying employees for the credit year (this should be a constant
number). For Line 3b, enter the overall number of qualifying employees, based on your quarterly filings with the Virginia Employment Commission
for the current year. See the instructions for guidance on computing the amount on Line 3b. (If the number of qualifying employees in any of these
5 years is less than in the initial credit year, a credit recapture may be required on Line 8. See the instructions for Line 8 for additional information.)
3a. Number of qualifying employees in the credit year. 3a.
3b. Overall number of qualifying employees in the current year for this expansion 3b.
See Schedule A and Schedule A Worksheet.
3c. If Line 3b is Less than Line 3a. Enclose a schedule showing the computation for recapture. 3c.
4. Threshold amount – Enter the amount from 2b. 4.
5. Number of credit year qualifying employees – Subtract Line 4 from Line 3a. 5.
6. Total credit allowed for this major business facility or expansion – Multiply Line 5 by $1,000. 6.
7. Current year credit – Multiply Line 6 by 1/2. 7.
8. Credit to be recaptured this year (if applicable). 8.
9. Adjusted credit – Subtract Line 8 from Line 7 (if applicable) 9.
Declaration: I, the undersigned officer or other person authorized to act on behalf of the business entity, have read and understand the limitations and
restrictions set forth for this application and the associated tax credit.
Authorized Signature Printed Name Title Date

Preparer Name Preparer Email Preparer Phone Number

Va. Dept. of Taxation 2601149-W Rev. 08/22

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Form 304                      Major Business Facility Job Tax Credit                             Taxable Year
Schedule A                    List of Qualifying Full-Time Employees                             _________

•  Complete this schedule for each year (1-6) that Form 304 is filed. 
•  Enclose a list of all full-time and full-time equivalent employees that were used to qualify for this credit. 
•  List must be in the format shown in the sample below.
•  No more than two part-time employees can be used as the equivalent of one full-time employee. 

Two  or  more  affiliated  companies  may  elect  to  aggregate  the  number  of  jobs  that  were  created  for  qualified  full-time 
employees as the result of the establishment or expansion by the individual companies to qualify for this credit. "Affiliated 
companies" means two or more companies that are related to each other such that one company owns at least 80% of the 
voting power of the other (or others), or at least 80% of the voting power of two or more companies is owned by the same 
interests. For each month, enter the total number of qualifying full-time or equivalent full-time employees on Schedule B. 
Each qualifying full-time position must: 
 (a) be of indefinite duration, and have been created by the taxpayer as a result of the establishment or expansion of a 
 major business facility in Virginia; and 
 (b) require a minimum of 35 hours per week for the entire year (minimum of 48 weeks); or 
 (c) require the employee to work a minimum of 35 hours per week for the portion of the taxable year in which the 
 employee was initially hired for, or transferred to, the facility in Virginia. 
Note that the hours of two qualifying part-time employees may be combined to qualify as one "equivalent" full-time employee. 
Seasonal or temporary positions, and jobs created when a job function is shifted from an existing location in Virginia to the 
new major business facility and positions in building and grounds maintenance, security and other such positions which are 
ancillary to the principal activities performed by the employees at a major business facility do not qualify. 
"Qualified  full-time  employees"  may  include  the  employees  of  a  contractor  or  a  subcontractor  if  they  are  permanently 
assigned to the taxpayer's major business facility. The taxpayer must be able to provide evidence to the Department of a 
contractual agreement with the contractor or subcontractor prohibiting the contractor or subcontractor from also claiming 
these employees in order to receive a credit under this section.
In addition to including your name as it appears on Form 304, your FEIN, and the location of your major business facility or 
date of expansion, your list must include the following columns:
Columns A-C:  Enter the Employee Name, Date of Hire, and Social Security Number of each qualifying employee. If you 
            are claiming a qualifying employee of a contractor or an affiliated company (see the above paragraph), 
            make a notation beside each such employee in Column A and enclose a separate schedule showing the 
            corresponding affiliated company or contractor.
Column D:   Enter the number of full months that the employee was employed in a qualifying position during the credit 
            year.
Column E:   Enter a brief position description or number for the qualifying employee.
Column F:   Part-time employee hours per week. *Enter the number of hours worked per week by the qualifying 
            part-time employee. No more than two qualifying part-time employees may be combined to qualify 
            as an "equivalent" full-time employee.
         Column A             Column B     Column C               Column D           Column E                       Column F 
 Employee Name                Date of Hire Social Security Number Number of       Brief Position Description/Number Part-Time 
 (Use Additional Schedules as                                     Full Months                                       Employee* 
         Necessary)                                               Employed During                                   (Number of 
                                                                  the Credit Year                                   Hours Per Week)
1
2
3
4
5
6
7
                                              Sample
                    Enclose with Form 304, Major Business Facility Job Tax Credit Application
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Form 304 Schedule A Worksheet Taxable Year
_________
Use to Calculate Line 3b of Form 304.

Complete the applicable sections for the current taxable year. There should be one line completed for each
applicable section.
Name as it Appears on Form 304 FEIN

Number of employees prior to first expansion. For a new facility, enter 0. ...............

A. B. C. D.
Number of qualifying Number of Number of Net amount
employees in the qualifying qualifying of qualifying
credit year. Enter on employees added. employees employees.
Form 304, Line 3a. terminated. (Columns A + B - C)
SECTION 1 – FIRST EXPANSION
Credit Year
Year 1 Taxable Year 20 ___ ___
Year 2 Taxable Year 20 ___ ___
Year 3 Taxable Year 20 ___ ___
Year 4 Taxable Year 20 ___ ___
Year 5 Taxable Year 20 ___ ___
Year 6 Taxable Year 20 ___ ___

SECTION 2 – SECOND EXPANSION [If applicable]
Credit Year
Year 1 Taxable Year 20 ___ ___
Year 2 Taxable Year 20 ___ ___
Year 3 Taxable Year 20 ___ ___
Year 4 Taxable Year 20 ___ ___
Year 5 Taxable Year 20 ___ ___
Year 6 Taxable Year 20 ___ ___

SECTION 3 – THIRD EXPANSION [If applicable]
Credit Year
Year 1 Taxable Year 20 ___ ___
Year 2 Taxable Year 20 ___ ___
Year 3 Taxable Year 20 ___ ___
Year 4 Taxable Year 20 ___ ___
Year 5 Taxable Year 20 ___ ___
Year 6 Taxable Year 20 ___ ___

Total of Column D. Enter on Form 304, Line 3b.

Enclose with Form 304, Major Business Facility Job Tax Credit Application.

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Form 304   Major Business Facility Job Tax Credit
           Qualifying Employees Schedule 
Schedule B                                                           *VA304B122888*

Name as it Appears on Form 304                                       FEIN

Starting with the first month of the taxable period for this return, enter the total number of qualifying full-time or equivalent full-
time employees from Schedule A for each month. The instructions on Schedule A define qualifying full-time and equivalent 
full-time employees. The total number of qualifying employees for the taxable year will be computed on Line N below and 
transferred to Form 304, Line 3a. For additional information, see the instructions for Form 304, Line 3.

         Column A                            Column B                    Column C
  Number of Qualifying or Equivalent  Number of Full Months Employed Multiply Column A by Column B
  Full-Time Employees                 During the Credit Year
A                                            12  months

B                                            11  months

C                                            10  months

D                                            9  months

E                                            8  months

F                                            7  months

G                                            6  months

H                                            5  months

I                                            4  months

J                                            3  months

K                                            2  months

L                                            1  month

M Add amounts in Column C, Lines A through L.

N Divide Line M above by 12. Enter here and on Form 304, Line 3a.

         Enclose with Form 304, Major Business Facility Job Tax Credit Application.

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Form 304   Major Business Facility Job Tax Credit
           Pass-Through Entity Identification
Schedule C                                                         *VA304C122888*

Name as it Appears on Form 304                                     FEIN

• Tier 1 and Tier 2 pass-through entities must complete this form.
•  Complete this section to identify each taxpayer (individual or business) to which a portion of this credit is distributed. 
  Enter in Columns D and E  the percentage and amount of  the current year credit from  Form  304, Line 7 that  is 
  distributed to each partner, shareholder, or other pass-through entity owner. Enclose a separate schedule if additional 
  space is needed. Indicate the type of pass-through entity which earned this credit below: 

    Limited Liability Company    Partnership    S Corporation        Other (specify) __________________

  Column A                     Column B            Column C                                 Column D   Column E
         Name                  FEIN or SSN         Address                                  Percentage Credit
1
                                                                                            %

2
                                                                                            %

3
                                                                                            %

4
                                                                                            %

5
                                                                                            %

6
                                                                                            %

7
                                                                                            %

8
                                                                                            %

9
                                                                                            %

10
                                                                                            %

         Enclose with Form 304, Major Business Facility Job Tax Credit Application.
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                              Instructions for Completing Form 304
                     Major Business Facility Job Tax Credit Application

      Qualifying for the Credit                                  Computing and Claiming the Credit; Due Date 
                                                                                   for Form 304
For taxable years beginning on and after January 1, 1995, but 
before July 1, 2025, individuals, estates, trusts, corporations, •   A company cannot file Form 304 and claim this credit 
banks, insurance companies, and telecommunications                   until the first taxable year following the taxable year in 
companies may claim Major Business Facility Job Tax                  which the company becomes eligible for the credit by 
Credits for qualified job expansion in excess of the threshold       establishing or expanding a major business facility in 
amounts established for 1 of the 2 credit tiers. This credit         Virginia.
is not available to retail businesses if retail trade is the 
                                                                 •   A company may enter into a new major business 
principal activity of the facility. The taxpayer cannot claim 
                                                                     expansion at the end of each credit year. Each expansion 
both the Major Business Facility Job Tax Credit, the Green 
                                                                     year must begin on the same date. For example, if your 
Job Creation Tax Credit, or the International Trade Facility 
                                                                     credit year ends on 12/31/2021 and your expansion year 
Tax Credit for the same jobs. 
                                                                     began on 02/01/2019, you can begin a new expansion 
A qualified business firm receiving an Enterprise Zone Job           on 02/01/2022.
Creation Grant under Va. Code § 59.1-547 shall not be 
                                                                 •   Complete Form 304 to compute your credit and forward 
eligible to receive a Major Business Facility Job Tax Credit 
                                                                     it to the Tax Credit Unit at the address below at least 
for any job that was used to qualify for the Enterprise Zone 
                                                                     90 days prior to the due date of your tax return. You 
Job Creation Grant. 
                                                                     will receive a certification letter confirming your credit 
"Qualified job expansion" means at least 50 jobs for qualified       amount.
full-time employees have been created within a continuous 
12-month period ending within a taxpayer's taxable year                        Where to File Form 304
(25 jobs if located within an enterprise zone or economically 
distressed area).                                                Send your completed Form 304 to: Tax Credit Unit, Virginia 
                                                                 Department of Taxation, P.O. Box 715, Richmond, 
The thresholds for the 2 credit tiers are as follows:
                                                                 Virginia 23219.
Tier 1: The qualifying threshold amount for Tier 1 is 
                                                                 NOTE: 
100 new jobs for the establishment or expansion of a 
major business facility in Virginia. Please note that for          • Form 304 must be filed for a total of 6 taxable years 
taxpayers whose expansion year begins on or after                    following each expansion.
January 1, 2010, the threshold has been reduced to                 • A separate Form 304 must be filed for each major 
50 new jobs.                                                         business facility or qualified job expansion.
Tier 2: The qualifying threshold amount for Tier 2 is 50           •  Do NOT enclose Form 304 with your tax return.
new jobs for the establishment or expansion of a major 
business facility in a locality identified by the Virginia                       What To Enclose
Economic Development Partnership as an economically 
distressed area or has been designated as an enterprise          To ensure the timely processing of your application, provide 
zone. Please note that for taxpayers whose expansion             the following:
year begins on or after January 1, 2010, the threshold             •  Schedules A, B, and/or C (if applicable).
has been reduced to 25 new jobs.
                                                                   • Virginia  Schedule  500AC,  Schedule  of Affiliated 
Taxpayers can qualify for and claim a credit for only one            Corporations Consolidated and Combined Filers (if 
tier per facility. Credits may be subject to recapture if the        applicable).
average number of qualifying employees decreases during 
the 5 years following the credit year.                             •  Physical address of each business location for all 
                                                                     expansion facilities.
A qualified company that claims employees for the Major 
Business Facility Job Tax Credit or the International Trade                    Pass-Through Entities
Facility Tax Credit cannot receive a Port of Virginia Economic 
and Infrastructure Development Zone Grant (POV Zone              Each  pass-through  entity  must  file  Form  PTE  with  the 
Grant) for any previously claimed jobs.                          Department when allocating this credit to its participants. 
                                                                 Form PTE should be filed within 30 days after the credit 
                                                                 is granted, but at least 90 days prior to the participants 

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filing their income tax returns. Failure to file Form PTE may Line 3b: Enter the number of qualifying full-time employees
result in the credit claim being disallowed and/or a delay in reported on the quarterly employment tax reports
processing the participant’s return. This information should filed with the Virginia Employment Commission
be sent to: Virginia Department of Taxation, ATTN: Tax for the current year. The number of qualifying
Credit Unit, P.O. Box 715, Richmond, VA 23218-0715 or employees must be calculated to 2 decimal places.
you may fax it to(804) 774-3902.Do not do both. : Provide the information requested. If you have
Line 3c
All pass-through entities distributing this credit to its questions, call the Virginia Department of
participants, including owners, shareholders, partners, or Taxation, Tax Credit Unit at (804) 786-2992.
members, must give each such participant a Schedule : Multiply the amount on Line 5 by $1,000.
Line 6
VK-1, Owner’s Share of Income and Virginia Modifications
and Credits. Line 7: For the credit year and the subsequent taxable
years, enter 1/ of the credit amount on Line 6.
2
Where to Get Help Exception: Affiliated companies that aggregated
jobs in order to qualify for this credit and file
Write to the Virginia Department of Taxation, P.O. Box 715, separate Virginia returns must enter the prorated
Richmond, VA 23218-0715 or call (804) 786-2992. current year credit amount here and enclose a
Forms and instructions are available for download from the statement reflecting the prorated amount for each
Department's website, www.tax.virginia.gov, or by calling affiliated company.
(804) 367-8031.
Line 8 : Credit to be recaptured this year: If the average
Forms are also available from the office of your local number of qualifying employees, as determined by
Commissioner of the Revenue, Director of Finance, or your current year quarterly filings with the Virginia
Director of Tax Administration. Employment Commission (Line 3b), is less than
the average number of qualifying employees for
Form Instructions your credit year (Line 3a), you may be required
to recapture all or a portion of the Major Business
Lines that are not specifically mentioned below are Facility Job Tax Credit.
self-explanatory.
Recapture is based on qualified full-time employees,
• Fiscal year filers: Using your federal tax period, complete but is not contingent upon specific employees.
the line at the top of the form. Consequently, recapture will not occur as a result
• Name, account number, and federal employer of employee turnover if average employment does
identification number: Enter the information that is not decrease.
requested.
Lines 1a through 2e: Provide information for the credit year. General Carryover Credit Information
Based on Form 304
Line 2c : A "major business facility" is a company that meets
the job threshold amounts and is engaged in The Major Business Facility Job Tax Credit is computed in
business in Virginia in a qualified industry, including the credit year and allowed over a 2 year period. This is a
manufacturing or mining, agriculture, forestry nonrefundable credit. Any unused amount may be carried
or fishing, or transportation or communications, forward for the next 10 taxable years.
and public utilities. An individual facility does not
qualify for the credit if retail is the principal activity Schedule A
of such facility. A "qualified full time employee" is
an employee filling a new, permanent full-time Complete Schedule A to identify each qualifying employee
position in a major business facility in Virginia (a according to the instructions provided. Please complete this
job of indefinite duration requiring a minimum of section for each year (1-6) that Form 304 is filed.
35 hours per week).
Schedule A Worksheet
Line 3 : Number of qualifying employees: Complete Lines
3a and/or 3b as explained on the form. You may Complete the Schedule A Worksheet to calculate the
use substitute Schedules A and B if they contain average number of qualifying employees in the current year.
the same data. There should be one line completed for each applicable
section. Enter the total from Column D on Form 304,
Line 3a: If this is the credit year (the first taxable year following
Line 3b.
the taxable year in which the major business facility
was established or expanded), complete Schedules
A and B, and enter the amount from Schedule B,
Line N.

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Schedule B (To be completed for the credit year) Lines M and N:
Line M: Add the amounts in Column C, Lines A through L.
Complete Schedule B to compute the number of qualifying
employees on a monthly basis. Line N: Divide Line M by 12. Enter here and on Form 304,
Line 3a.
Lines A through L:
Schedule C
Column A: On each line, enter the number of qualified full-
time or equivalent full-time employees who filled Tier 1 and Tier 2 pass-through entities must complete
new permanent (indefinite duration) full-time Schedule C for each year that a credit is earned (generally
positions in Virginia and were employed for the years 1-3).
same number of months during the credit year.
In addition, a pass-through entity is also required to complete
Column B: The number of months preprinted in Column B a Form 502 and send each participant a copy of the
should be the number of months that the qualifying pass-through entity’s certification letter to enclose with its
employees in Column A on the same line worked income tax return and a Schedule VK-1.
during the credit year.
Column C: For each line, multiply the amount in Column A by
the amount in Column B.

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