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Virginia Coalfield Employment Enhancement Tax Credit Taxable Year
Form 306D Tax Designation and Credit Calculation 2022
See the Instructions before completing this form.

Fiscal Year Filers: Enter beginning date ___________, 2022, and ending date ____________, _____ and check here.

Name FEIN or SSN

Purpose of Form 306D
1) To list each state tax which the Coalfield Employment Enhancement Tax Credit will be used to offset, and
2) To calculate the amount of the Coalfield Employment Enhancement Tax Credit that will be allowed on your 2022
income tax return.
The Coalfield Employment Enhancement Tax Credit earned and reported on the 2019 Form 306 is allowable as a credit on
the 2022 income tax return. You must have earned and reported the credit on your 2019 income tax return in order to
claim the credit on your 2022 income tax return.
NOTE: The Coalfield Employment Enhancement Tax Credit has expired for taxable years beginning on or after January 1,
2022. Only credits reported in prior years may be used to offset tax amounts in the current taxable year.

Part I – Credit Designation
Enclose a copy of the document(s) verifying payment of each amount claimed in the current taxable year. Do not include
local taxes; taxes incurred by your customers; prior year taxes; or addition to tax, penalty, or interest paid. If you are using
the Coalfield Employment Enhancement Tax Credit to offset more than 5 taxes, include additional pages and enter the
total from all pages on Line 7 below.
Section 1 – Tax Payment Details
A) Name of Taxpayer Under Which 2022 Payment(s) Were Made B) FEIN / SSN F) Tax Paid in Current Tax Year

1. C) Type of State Tax Paid D) State Agency Administering Tax E) Date(s) Paid and Tax Period
.00
A) Name of Taxpayer Under Which 2022 Payment(s) Were Made B) FEIN / SSN F) Tax Paid in Current Tax Year

2. C) Type of State Tax Paid D) State Agency Administering Tax E) Date(s) Paid and Tax Period
.00
A) Name of Taxpayer Under Which 2022 Payment(s) Were Made B) FEIN / SSN F) Tax Paid in Current Tax Year

3. C) Type of State Tax Paid D) State Agency Administering Tax E) Date(s) Paid and Tax Period
.00
A) Name of Taxpayer Under Which 2022 Payment(s) Were Made B) FEIN / SSN F) Tax Paid in Current Tax Year

4. C) Type of State Tax Paid D) State Agency Administering Tax E) Date(s) Paid and Tax Period
.00
A) Name of Taxpayer Under Which 2022 Payment(s) Were Made B) FEIN / SSN F) Tax Paid in Current Tax Year

5. C) Type of State Tax Paid D) State Agency Administering Tax E) Date(s) Paid and Tax Period
.00
Section 2 – Tax Calculation

6. Add Lines 1-5 above and enter the total tax paid in current taxable year. ................
.00

7. Enter the total tax paid in current taxable year from all additional pages (if applicable). .....
.00
8. Total eligible tax payments. Add Lines 6 and 7 and enter here. Also enter this amount in
Part II, Section 1, Line 2 ...................................................... .00
Va. Dept. of Taxation 2601433 Rev. 08/22

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Virginia Coalfield Employment Enhancement Tax Credit Taxable Year
Form 306D Tax Designation and Credit Calculation 2022
Page 2

Name FEIN or SSN

Part II – Credit Calculation
Section 1 – Summary
1. Enter 100% of the Coalfield Employment Enhancement Tax Credit from the 2019 Form 306,
Line 11 ................................................................... .00

2. Enter the total eligible tax payments from Part I, Section 2, Line 8. ....................
.00
Section 2 – Full Credit Calculation
3. a. If the amount on Line 1 is greater than the amount on Line 2, enter the amount from Line 2
here, then continue to Line 4 below to calculate the excess credit ..................
b. If the amount on Line 1 is less than the amount on Line 2, enter the amount on Line 1 here
and stop. This is the total allowable credit you may use on your income tax return .... .00
Section 3 – Excess Credit Calculation

4. Subtract Line 3 from Line 1 ...................................................
.00

5. Allowable excess credit. Multiply the amount on Line 4 by 85% (0.85) ................
.00
6. Multiply the amount on Line 5 by 15% (0.15). This amount is deposited into a fund administered
by the Virginia Coalfield Economic Development Authority ........................... .00

Part III – Declaration and Signature

I (we) the undersigned declare, under the penalties provided by law, that this form (including any accompanying schedules,
statements, and attachments) has been examined by me (us) and is, to the best of my (our) knowledge and belief, a true,
correct, and complete application, made in good faith pursuant to the income tax laws of the Commonwealth of Virginia.
If a person other than the taxpayer prepares this application, such declaration is based on all information of which they
have knowledge.

Authorized Signature Title Date

Printed Name Phone Number

Email Address Fax Number

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                       Instructions for Form 306D 
                       Coalfield Employment Enhancement Tax Credit  
                       Tax Designation and Credit Calculation

             General Information                                             Line Instructions

                                                                  Use Form 306D to: 
Coalfield Employment Enhancement Tax Credit                       1)  list  each  state  tax  which  the  Coalfield  Employment 
Effective for taxable years on and after January 1, 2022, the     Enhancement Tax Credit will be used to offset, and 
Coalfield Employment Enhancement Tax Credit has expired.          2)  calculate  the  amount  of  Coalfield  Employment 
No new credits can be earned, however, credits earned in          Enhancement Tax Credit that will be allowed on your 
prior years can be claimed based on the Credit Redemption         income tax return. 
Schedule below. If the amount of the credit exceeds your 
income tax liability for a year in which you redeem credits, 
                                                                  Part I – Credit Designation
the  excess  credit  will  be  applied  to  other  taxes  imposed 
by  the  Commonwealth  of  Virginia.  The  Department  of 
Taxation will redeem any remaining credit as follows: 85%         Section 1 – Tax Payment Details
will be refunded directly to the taxpayer and the remaining 
                                                                  General Instructions for Section 1
15% will be deposited in a regional economic development 
fund  administered  by  the  Virginia  Coalfield  Economic        List each qualifying current year state tax paid to the Virginia 
Development Authority.                                            Department  of  Taxation  or  any  other  state  agency  during 
                                                                  the taxable year on Lines 1-5. Taxes paid to federal or local 
             Credit Redemption Schedule                           government agencies do not qualify.
Taxable Year Earned    Taxable Year to Claim                      Qualifying state taxes are those incurred and paid by you. 
             2019      2022                                       Examples of qualifying taxes paid to the Virginia Department 
                                                                  of Taxation are the corporate income tax, tire tax, and retail 
             2020      2023
                                                                  sales  tax  (to  the  extent  that  the  sales  tax  was  paid  for 
             2021      2024                                       nonexempt purchases for use by you). Taxes which are merely 
                                                                  collected, held in trust, and then remitted to the Department 
                                                                  of Taxation do not qualify for this credit. Examples of non-
Virginia Coal Employment and Production                           qualifying taxes include employer withholding tax and retail 
Incentive Tax Credit                                              sales tax paid by your customers. In addition, this credit may 
                                                                  not include any addition to tax (computed on Forms 760C, 
Effective for taxable years beginning on or after January 1, 
                                                                  760F, or 500C), penalty, interest, or prior year taxes. 
2022,  the  Virginia  Coal  Employment  and  Production 
Incentive  Tax  Credit  has  expired.  No  new  credits  can  be  The  credits  must  first  be  applied  against  the  income  tax 
earned  after  this  date,  however  electricity  generators  that  shown on your income tax return and then against all other 
originally  earned  the credit may carry forward amounts of  taxes imposed by the Commonwealth of Virginia that were 
credit for up to 10 taxable years or until the full amount is  incurred and paid by you during the taxable year. 
used, whichever is sooner. Effective for credits earned on        When  completing  Lines  1-5,  enter  the  tax  shown  on  your 
or after July 1, 2016, but before January 1, 2022, persons        income tax return, less any other tax credits claimed which 
with an economic interest in coal that receive an allocation      have a higher priority. As a general rule, credits are claimed 
of credits may no longer receive refunds of such credits and      in the order in which they provide the best tax advantage. For 
may not carry forward unused amounts of credits for use in        example, credits without carryover provisions are generally 
future taxable years.                                             claimed before credits with carryover provisions.
Effective for taxable years beginning on and after January 1, 
                                                                  Line Instructions for Completing Section 1
2022, a taxpayer claiming carryover credits on a return may 
not claim more than $1 million in credits for a single taxable    Line A)   Name of Taxpayer Under Which 2022 Payment(s) 
year. No taxpayer may amend a return for a taxable year           Were Made
beginning  before  January  1,  2022,  to  claim  more  credits  Enter the taxpayer name under which the tax was paid. For 
than the amount included on such return before amending  example, if the tax was paid to the Virginia Department of 
it. Persons with an economic interest in coal that receive a  Taxation, enter your name used when making the payment. 
transfer  of  credits  may  not  receive  refunds  of  credits  and  If  credit  is  claimed  for  a  pass-through  distribution  from 
may not carry forward unused amounts of credits for use in  a  partnership,  limited  liability  company,  or  subchapter  S 
future taxable years. For additional information regarding the  corporation, enter the name  shown on the statement from 
application  of  carryover  credits,  see  the  Schedule  500CR  that entity.
Instructions.

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Line B) FEIN / SSN Section 2 – Full Credit Calculation
Enter the taxpayer account number under which the tax was
Line 3
paid.
Compare the amounts on Lines 1 and 2 above.
Line C) Type of State Tax Paid
– If Line 1 is greater than Line 2 , enter the total tax
Enter the name of the state tax for which credit is claimed for
payments from Line 2. You are eligible to claim the
tax paid. For example: “corporation income tax.”
excess tax credit. Continue to Section 3, Line 4 to
Line D) State Agency Administering Tax calculate the refundable portion of the tax credit.
Enter the name of the state agency to which the tax was – If Line 1 is less than Line 2 , enter the amount from
paid. Line 1 and stop here. This is the total credit you can
Line E) Date(s) Paid and Tax Period: claim for the taxable year. Transfer this amount to
Schedule CR, Section 3, Part 1, Line B (individuals)
Enter the date that the payment was made and the taxable or Schedule 500CR, Section 3, Part 1, Line B
period for which the payment was applied. For example, if (corporations).
claiming credit for a use tax payment made on April 15, 2022,
for the period January through March, enter “1st quarter use Section 3 – Excess Credit Calculation
tax paid April 15, 2022.” If additional space is required, use
additional page(s). Line 4
Line F) Tax Paid in Current Taxable Year Subtract the amount in Section 2, Line 3 from the amount in
Section 1, Line 1. This is the full amount of the excess credit.
Enter the amount of tax that was reported in the “Date(s)
Paid and Tax Period” field. Line 5
Multiply the amount from Line 4 above by 85% (0.85). This
Section 2 – Tax Calculation is the excess credit that may be refunded to at 85% of face
Line 6 value. Transfer this amount to Schedule CR, Section 3,
Part 1, Line C (individuals) or Schedule 500CR, Section 3,
Add the amounts reported in Section 1, Lines 1-5. Part 1, Line C (corporations).
Line 7 Line 6
If you are reporting more than 5 taxes, enclose additional Multiply the amount on Line 5 by 15% (0.15). This amount
pages that include the information collected on Lines 1-5. is deposited into a regional economic development
Add the total of all additional pages and enter that amount fund administered by the Virginia Coalfield Economic
here. Development Authority.
Line 8
Add Lines 6 and 7. This is the total tax liability that the credit Information for Pass-Through Entities
will offset.
Pass-through entities must provide their shareholders,
Part II – Credit Calculation partners or members with a copy of the entity’s Form 306D
to enclose with their returns. In addition, all pass-through
Any lines not mentioned below are self-explanatory. entities distributing this credit to their owners, shareholders,
partners or members must give each a Schedule VK-1,
Section 1 – Summary
Owner’s Share of Income And Virginia Modifications And
Line 1 Credits.
100% Credit: Refer to your 2019 Form 306 and enter the Each partnership or limited liability company distributing this
amount reported on Line 11. This is the credit you can use to credit must also send a copy of the same partner or member
offset tax(es) in the 2022 taxable year. Transfer this amount information directly to the Virginia Department of Taxation,
to Schedule CR, Section 3, Part 1, Line A (individuals) or ATTN: Coalfield Employment Enhancement Tax Credit
Schedule 500CR, Section 3, Part 1, Line A (corporations). Distribution, P.O. Box 5126, Richmond, Virginia 23220-
0126 within 60 days of making the distribution.
Line 2
Total Tax Liability: Enter the total eligible tax payments
Where to Get Help
reported in Part I, Section 2, Line 8. This is your total tax
liability for the taxable year in which the credit will be claimed.
For additional information, write to the Virginia Department
of Taxation, P.O. Box 5126, Richmond, VA 23220-0126
or call (804) 367-8031 (individuals) or (804) 367-8037
(businesses). You can obtain most Virginia income tax
forms and additional tax information by visiting www.tax.
virginia.gov.

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