GJC: Application for Green and Alternative Energy Jobs Creation Tax Credit (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Form GJC is an application for approval of the Green and Alternative Energy Job Creation Tax Credit. It reports your business information, renewable or alternative energy type, eligible jobs, and requested credit amount. The credit must be approved before you claim it on
Who files this form
Taxpayers seeking the Green and Alternative Energy Job Creation Tax Credit use Form GJC. Each location must file a separate application, and the credit must be approved before it is claimed on a return.
Eligible jobs must be newly created in Virginia and relate directly to renewable or alternative energy. Part 2 requires each position to have been filled for at least one year and each employee to have worked at least 1,680 hours. Jobs moved from an existing Virginia location do not qualify.
Salary wording differs within the supplied text: Part 3 of the form says an annual salary of “at least $50,000,” while the included general instructions say “in excess of $50,000.”
You must apply each year you are eligible to earn credit for a continuously filled job, for no more than five years.
When it's due
For the 2024 tax year:
- Complete and submit Form GJC and supporting documentation at least 90 days before your return's due date. The text does not give a specific calendar due date.
- Pass-through entities allocating the credit to owners should file Form TCA within 30 days after the credit is granted, but at least 90 days before participants file their income tax returns.
What you'll need
- Form GJC, including taxpayer information, energy type, credit computation, and a signed declaration.
- GJC Schedule A, listing job titles, position numbers, dates first filled, work localities, job descriptions, employee SSNs, salaries, employment dates, and employees' cities or counties and states of residence. Submit additional copies if needed.
- A copy of each eligible employee's W-2.
- For guaranteed payments: a copy of Schedule K-1 (Form 1065) and a statement saying whether the payments were for services or the use of capital.
Pass-through entities allocating the credit must also file Form TCA and give each participant a Schedule VK-1.
How to file
Complete a separate Form GJC for each location, enclose Schedule A and supporting documents, and sign the declaration.
Mail the application and enclosures to:
Virginia Department of Taxation
ATTN: Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715
Or fax them to (804) 774-3902.
After receiving notification of the allowable credit amount, claim that amount on the applicable Virginia income tax return and compute any carryover.
If approval has not arrived by your return's due date, you may file during the extension period or file your regular return without the credit and amend it after receiving notification.
Pass-through entities send Form TCA to the same address or fax number. Do not submit Form TCA by both methods.
Common mistakes
- Claiming the credit before approval. Approval is required first.
- Combining locations on one application. Each location must file separately.
- Overlooking the other-credit restriction. The form says applicants who applied for the Major Business Facility Job Tax Credit for the same taxable year do not qualify. It also bars credit for jobs covered by the specified federal clean-energy manufacturing investment credit.
- Applying before registering the business. Business taxpayers should be registered with the Department before completing Form GJC. If not registered, complete Form R-1.
- Entering an email address unintentionally. Providing one consents to email communications about the application. Leave it blank if you do not want those communications.
- Failing to file Form TCA when allocating credits. This may cause disallowance of the credit claim or delay processing of a participant's return.
Questions people ask
How much is the credit?
The credit is $500 per eligible job, with a limit of 350 jobs per taxpayer.
How long can a job qualify?
The credit is allowed for the taxable year in which the job has been filled for at least one year and for each of the next four taxable years, provided the job remains continuously filled during each year. You must apply each year.
What if the credit exceeds my tax liability?
The amount claimed in a year cannot exceed that year's tax liability. The excess may be carried forward for the next five taxable years or until used up, whichever comes first.
How do pass-through entities divide the credit?
Credits must be allocated in proportion to each owner's percentage of ownership or participation in the entity.
Where can I get help?
Call the Virginia Department of Taxation's Tax Credit Unit at (804) 786-2992. Tax forms and additional information are available at www.tax.virginia.gov.