CHAPTER 493

AN ACT to provide that, upon certain contingencies, certain credits
shall be allowed upon the State income tares of individuals,
fiduciaries and corporations, and to provide the method of
taking such credits.

[S 351]
Approved April 7, 1950

Be it enacted by the General Assembly of Virginia:

§1. On the first day of August of each year beginning with the
year nineteen hundred and fifty-one the State Comptroller shall
submit to the Governor an accurate report showing the revenues
paid into the State treasury during the preceding fiscal year of the
Commonwealth from the sources listed as Revenues Available for
General Appropriations in the Budget for the biennium beginning
July 1, 1950, submitted to the General Assembly by the Governor.
Tf sneh report so submitted to the Governor by the Comptroller
discloses that the amounts so received into the State treasury from
such sources exceed the sum of ninety-six million dollars, the
Grovernor shall issue a proclamation stating such fact and stating
further the applicable credit, if any, to which individuals, fiduciaries
and corporations are entitled under the following sections of this
Act.

Such proclamation, if required, shall be issued on or before
the fifteenth day of August of the year in which the report is sub-
mitted to the Governor by the Comptroller.

§ 2. If the report submitted to the Governor on August 1, 1951,
by the Comptroller under the provisions of § 1 of this Act shows
that the amounts received into the State treasury during the fiscal
year ending June 30, 1951, from the sources specified in said § 1
exceed one hundred million dollars but do not exceed one hundred
and three million dollars, each individual and fiduciary liable for
State income taxes under the provisions of Chapter 4 of Title 58
of the Code of Virginia shall be entitled to a credit of ten per
centum upon the State income tax of such individual or fiduciary
for the taxable year nineteen hundred and fifty, and each corpora-
tion liable for State income taxes under the provisions of Chap 4
of Title 58 of the Code of Virginia shall be entitled to a credit of
ten per centum upon the State income tax of such corporation for
the taxable year nineteen hundred and fifty-one. If such report
shows that the amounts so received into the State treasury during
such fiscal year from the sources specified above exceed one hun-
dred and three million dollars but do not exceed one hundred and
five million dollars, the amount of the credit shall be fifteen per
centum of the State income tax of each such individual and fiduciary
for the taxable year nineteen hundred and fifty, and fifteen per
centum of the State income tax of each such corporation for the
taxable year nineteen hundred and fifty-one. If such report shows
that the amounts so received into the State treasury during such
fiscal year from the sources specified above exceed one hundred
and five million dollars, the amount of the credit shall be twenty
per centum of the State income tax of each such individual and
fiduciary for the taxable year nineteen hundred and fifty and
twenty per centum of the State income tax of each such corporation
for the taxable year nineteen hundred and fifty-one.

The provisions of the preceding paragraph of this section shall
be subject to the proviso that, if the taxpayer’s taxable year is a
fiscal vear ending in nineteen hundred and fifty in the case of an
individual or fiduciary and in nineteen hundred and fifty-one in
the case of a corporation, the taxpayer shall be entitled to only
that proportion of the credit determined according to the pro-
visions of the preceding paragraph of this section as the number
of months in the taxpayer's fiscal vear which fall in the calendar
vear nineteen hundred and fifty in the case of an individual or
fiduciary and in the calendar year nineteen hundred and fifty-
one in the case of a corporation bears to the whole number of
months of the fiscal year of the taxpayer. This paragraph shall
not apply to the calculation of any credit for any fiscal year end-
ing after December thirty-first, nineteen hundred and fifty in the
case of individuals and fiduciaries or for any fiscal vear ending
after December thirty-first, nineteen hundred and fifty-one in the
case of corporations.

§ 3. The report submitted to the Governor on August 1, 1952,
and on August 1 of each year thereafter shall show the total amount
of the credits allowed under § 2 of this Act or under this section
during the fiseal year ending on June 30 of the year in which the
report is submitted in addition to showing the information required
by § 1 of this Act. If the report submitted to the Governor by the
Comptroller on August 1, 1952, or on August 1 in any year there-
after, under the provisions of § 1 of this Act shows that the amounts
received into the State treasury during the fiscal year ending on
June 30 of the year in which the report is submitted from the
sources specified in § 1 of this Act plus the total of the credits
allowed during such fiscal year under the provision of § 2 of this
Act or under the provisions of this section exceed one hundred
million dollars but do not exceed one hundred and three million
dollars, each individual and fiduciary liable for State income taxes
under the provisions of Chapter 4 of Title 58 of the Code of Virginia
shall be entitled to a credit of ten per centum upon the State
income tax of such individual or fiduciary for the taxable year
preceding the year in which such report is submitted, and each
corporation liable for State income taxes under ihe provisions of
Chapter 4 of Title 58 of the Code of Virginia shall be entitled to
a credit of ten per centum upon the State income tax of such
corporation for the taxable year in which such report is submitted.
If such report shows that the amounts so received into the State
treasury during such fiscal year from the sources specified above
plus the total of the credits allowed during such fiscal year exceed
one hundred and three million dollars but do not exceed one hun-
dyed and five million dollars, the amount of the credit shall be fif-
teen per centum of the State income tax of each such individual or
fiduciary for the taxable year preceding the year in which such
report is submitted and fifteen per centum of the State income tax
of each such corporation for the taxable year in which such report
is submitted. If such report shows that the amounts so received
into the State treasury during such fiscal year from the sources
specified above plus the total of the credits allowed during such
fiscal year exceed one hundred and five million dollars, the amount
of the credit shall be twenty per centum of the State income tax
of each such individual or fiduciary for the taxable year preceding
the year in which such report is submitted and twenty per centum
of the State income tax of each such corporation for the taxable
year in which such report is submitted.

§ 4. The tax credits allowed under §§ 2 and 3 of this Act to
individuals and fiduciaries shall be allowed by making a correction
or adjustment of the return of the taxpayer or on the tax bill sent
to the taxpayer.