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Virginia Free Printable Form EDC - Taxpayer Application for the Qualified Equity and Subordinated Debt Investments Tax Credit for 2020 Virginia EDC - Taxpayer Application for Qualified Equity and Subordinated Debt Investments Credit

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EDC - Taxpayer Application for Qualified Equity and Subordinated Debt Investments Credit
Form EDC - Taxpayer Application for the Qualified Equity and Subordinated Debt Investments Tax Credit

VIRGINIA Form EDC Taxpayer Application for the Qualified Equity and Subordinated Debt Investments Tax Credit Tax Year Ending ________ , 20______ Submit this form by April 1. Credit must be approved before being claimed on your tax return. See instructions for details. Name (One name per application) SSN or FEIN (One per application) Street Address Phone Number City, State, and ZIP Code Email Entity Type: (Check one)  Individual  Partnership  LLC S Corporation  Trust If you made a cash investment in a qualifying business in the form of qualified equity or subordinated debt, submit this application to the Department. The Department will determine the allowable credit amount. The credit is equal to 50% of the amount of all qualifying investments made during the taxable year. The aggregate amount of credit that may be claimed per taxpayer per year is limited to the amount of tax or $50,000, whichever is less. The credit is nonrefundable; however, excess credit may be carried forward for up to 15 years. The Department will prorate the allowable credits if total annual requests exceed $5 million. Penalties and forfeiture of this credit may apply if the equity investment is held for less than 3 years following the year the credit is allocated or on any subordinated debt investment that is held for less than 3 years. IMPORTANT: See the instructions for details on when and where to submit the application. No application received after April 1st will be eligible for the credit. PART I - BUSINESS ENTITY IDENTIFICATION Complete this section for each qualifying investment. You must have a Department-issued qualified business certification from each qualifying business. Do not include investments in which you or any family members, or any entity affiliated with you, receives or has received compensation from the qualified business in exchange for services provided to the business as an employee, officer, director, manager, independent contractor, or otherwise in connection with or within 1 year before or after the date of such investment. Enclose additional pages if needed. 1. Name of Qualified Business Entity 2. Certificate Number from Form QBA Provided by the Qualified Business 3. Name and Type of Investment (i.e. equity or subordinated debt) Date Qualified Investment Made .00 Amount of Qualified Investment $ Will this investment be claimed as a subtraction for the Venture Capital Account Investment Fund? Yes No 1. Name of Qualified Business Entity 2. Certificate Number from Form QBA Provided by the Qualified Business 3. Name and Type of Investment (i.e. equity or subordinated debt) Date Qualified Investment Made .00 Amount of Qualified Investment $ Will this investment be claimed as a subtraction for the Venture Capital Account Investment Fund? Yes No PART II - TOTAL CREDIT REQUESTED 1. TOTAL QUALIFIED INVESTMENT (including any amounts listed on separate pages).. . . . . . . . . $ .00 2. Multiply Total Qualified Investment (Line 1) Amount by 0.5 (50%). Enter result here.. . . . . . . . . . . $ .00 3. Total Number of Qualified Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART III - DECLARATION Under penalty of law, I have read and understand the limitations and restrictions for this credit. Taxpayer Signature Date Title Printed Name Phone Number Authorized Representative Phone Number Address Va. Dept. of Taxation  2601154  Rev. 12/19 Email Instructions for Form EDC, Application for Qualified Equity and Subordinated Debt Investment Tax Credit Under Va. Code § 58.1-339.4 (E), the Qualified Equity and Subordinated Debt Investments Tax Credit is capped at $5 million annually. Of the amount of available credit, one-half of this amount must be allocated to commercialization investments and the other half is available for all other qualifying investments. If credit applications for either half exceed the allowed amount, the credits for that half will be prorated. If credit applications for either half are less than the allowed amount, the balance will be available for allocation to the other type of credits. Investments do not qualify for the credit if the same investment was used to claim the Venture Capital Investment subtraction. See Form QBA for the list of criteria a business must satisfy in order to become a qualified business. When to Submit This Application Submit Form EDC as soon as possible after receiving all of your Form QBA certifications for qualified investments made during the previous taxable year and as soon as possible BEFORE your tax filing deadline. Taxpayers making a qualified investment during a calendar year MUST submit this application and all supporting documentation no later than April 1 of the following year. For any application received without a postmark, the date received by the Department will be used to determine if the application was received by the filing deadline. Note: the postmark cannot be handwritten. What to Enclose Enclose the following items: • A copy of the qualified business certification (issued to the business by the Department); • A business entity’s statement, on the business’ letterhead, containing: • the investor’s name; • the investment by amount (list each amount separately); • the investment by type (equity or debt); • the investment by date (specific to each investment amount); • verification that the investment meets the definition of a “qualified investment” for purposes of claiming the credit pursuant to Va. Code § 58.1-339.4. Title 23 of the Virginia Administrative Code (VAC) 10‑110‑225 et seq. provide regulations on how this credit applies. As the holder of this investment, you or any of your family members (spouse, children, grandchildren, parents, spouse’s parents, or grandparents) or any entity directly or indirectly affiliated with you, do not and have not received compensation from the qualified business in exchange for services provided to such business as an employee, officer, director, manager, independent contractor or otherwise in connection with or within one year before or after the date of such investment. For the purposes hereof, reimbursement of reasonable expenses incurred shall not be deemed to be compensation. The statement provided to investors must be signed by a company officer. For investors affiliated with the qualified business, such as the Corporate Officer, CFO, etc., the statement should be signed by another member of the company. Note: For married investors, the credit cannot be issued jointly. The investment must be made individually and a separate Form EDC and business statement must be provided for each spouse. Where to Submit This Application Submit Form EDC and any enclosures to the Department of Taxation, ATTN: Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-0715 or fax it to (804) 774-3902. What to Expect from the Department If the Department needs additional information, the agency will contact you by May 1 and you will have until May 15 to respond. If you have not received acknowledgment of your application by May 31, call (804) 786-2992. The Department will issue the credit by June 30. If you have not received your credit certification by July 15, call (804) 786-2992. What Does the Taxpayer Need to Do Upon receiving notification of the allowable credit amount, taxpayers may claim the allowable credit amount on the applicable Virginia income tax return and compute any carryover credit amount. IMPORTANT Any business entity filing Form EDC should be registered with the Department before completing the form. If you are a business entity and are not registered, please complete Form R-1. If the tax return upon which this credit will be claimed is due on or before May 1, you may need to either submit an extension payment for any tax due or file an amended return once you have received the credit certification. Required Investor Holding Period • Equity received in connection with a qualified business investment must be held by the taxpayer for at least 3 full calendar years following the calendar year for which a tax credit is allocated. • Subordinated debt received in connection with a qualified business investment must be held by the taxpayer for at least 3 years from the date of issuance. • Holding Period Exception – Liquidation of the qualified business issuing such equity; the merger, consolidation or other acquisition of such business; with or by a party not affiliated with such business or the death of the taxpayer. Penalty for Not Meeting the Required Holding Period If the required holding period is not met, the taxpayer must forfeit the unused credit amount and will be assessed for the credit utilized, to which shall be added interest, computed at the rate of 1% per month, compounded monthly from the date the tax credits were claimed. Pass-Through Entities Each pass-through entity must File Form PTE with the Department within 60 days after the credit is granted. This information should be sent to: Department of Taxation, ATTN: Tax Credit Unit, P.O. Box  715, Richmond, VA 23218-0715 or you may fax it to (804) 774-3902. Please do not do both. All pass-through entities distributing this credit to its owner(s), shareholders, partners, or members must give each a Schedule VK‑1, Owner’s Share of Income and Virginia Modifications and Credits. Where to Get Help Write to the Virginia Department of Taxation, ATTN: Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-0715 or call (804)  786‑2992. To order forms or a copy of the regulations call (804) 367-8031. Visit www.tax.virginia.gov to obtain most Virginia income tax forms and additional tax information. Forms are also available from your local Commissioner of the Revenue, Director of Finance or Director of Tax Administration.
Extracted from PDF file 2019-virginia-form-edc.pdf, last modified December 2019

More about the Virginia Form EDC Corporate Income Tax Tax Credit TY 2019

We last updated the EDC - Taxpayer Application for Qualified Equity and Subordinated Debt Investments Credit in March 2020, so this is the latest version of Form EDC, fully updated for tax year 2019. You can download or print current or past-year PDFs of Form EDC directly from TaxFormFinder. You can print other Virginia tax forms here.

Other Virginia Corporate Income Tax Forms:

TaxFormFinder has an additional 135 Virginia income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form 502 Pass-Through Entity Return of Income
Form 770 770 - VA Fiduciary Income Tax Return
Form 500 Corporate Income Tax Return
Form 502W 502W - Pass-Through Entity Withholding Tax Payment Voucher and Instructions
Form 502 VK-1 Owner's Share of Income and Virginia Modifications and Credits

Download all VA tax forms View all 136 Virginia Income Tax Forms


Form Sources:

Virginia usually releases forms for the current tax year between January and April. We last updated Virginia Form EDC from the Department of Taxation in March 2020.

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Form EDC is a Virginia Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Virginia Form EDC

We have a total of nine past-year versions of Form EDC in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2019 Form EDC

Form EDC - Taxpayer Application for the Qualified Equity and Subordinated Debt Investments Tax Credit

2018 Form EDC

Form EDC - Taxpayer Application for the Qualified Equity and Subordinated Debt Investments Tax Credit

2017 Form EDC

Form EDC - Taxpayer Application for the Qualified Equity and Subordinated Debt Investments Tax Credit

2016 Form EDC

Form EDC - Taxpayer Application for the Qualified Equity and Subordinated Debt Investments Tax Credit

EDC - Taxpayer Application for Qualified Equity and Subordinated Debt Investments Credit 2014 Form EDC

EDC Flat Final12 23 14.indd

2012 Form EDC

EDC final 11 26 12 final.indd

2011 Form EDC

EDC final 12 21 11.indd


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