ITF: Application for International Trade Facility Tax Credit (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Form ITF is an application for approval of the International Trade Facility Tax Credit, using either the Port Job Tax Credit or the Port Investment Tax Credit option. It reports cargo activity, qualifying employees or capital investment, and the credit requested. It also
Who files this form
Use Form ITF to apply for Virginia’s International Trade Facility Tax Credit. The credit must be approved before you claim it on your Virginia income tax return.
A qualifying international trade facility is a company that:
- Engages in port-related activities, such as warehousing, distribution, freight forwarding and handling, or goods processing.
- Uses maritime port facilities in Virginia.
- Transports at least 5% more cargo through Virginia cargo facilities during the current taxable year than during the preceding taxable year.
Choose either the Port Job Tax Credit or the Port Investment Tax Credit. You cannot claim both for the same taxable year. The form says that if you have applied for a Major Business Facility Job Tax Credit, you do not qualify.
For each credit earned, an updated Form ITF is required for the next five years. Port Job Tax Credit recipients must also submit Schedule A during those years.
When it's due
For credits earned in tax year 2024, the printed application schedule is:
- April 1 of the following year: Complete and mail Form ITF, required schedules, and supporting documentation.
- May 1: The Department will contact you by this date if it needs additional information.
- May 15: Deadline to respond to that request.
- May 31: If you have not received an acknowledgment by this date, call (804) 786-2992.
- June 30: The Department will issue the credit by this date.
- July 15: If you have not received your credit certification by this date, call (804) 786-2992.
For a credit originating in tax year 2024, submit an updated Form ITF by April 1 each year for the five years following the credit year.
If an application has no postmark, the Department uses the date it receives the application to determine whether it was timely.
What you'll need
Have your business name, FEIN or SSN, address, entity type, contact information, and authorized signature ready.
All applicants
- Enclose Virginia Port Authority (VPA) validation summaries for the current and preceding taxable years. Complete the validation summary before filing.
- Include Schedule D for shipments through non-VPA-owned ports or shipments not listed on the VPA validation summary.
Port Job Tax Credit
- First year: Complete Schedules A and B.
- Years 2 through 6: Complete Schedule A.
- Enclose the required employee list, including each qualifying employee’s name, Social Security number, full months employed, and brief position description and number. Identify employees of affiliated companies and include a separate schedule showing the corresponding company.
Port Investment Tax Credit
- Complete Schedule C with each qualified investment’s date, use, and amount.
- Keep copies of supporting investment records. Examples include invoices or receipts, proof of payment, and the depreciation worksheet for federal Form 4562 supporting the investments claimed.
How to file
- Make sure your business is registered with the Virginia Department of Taxation before completing Form ITF. If it is not registered, complete Form R-1.
- Complete the business information and cargo comparison, select one credit option, and complete the applicable section and schedules.
- Sign the application and include the required enclosures.
- Mail the application to:
Virginia Department of Taxation
ATTN: Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715
Or fax it to (804) 774-3902.
After receiving notification of the allowable credit amount, claim that amount on the applicable Virginia income tax return. If that return is due on or before May 1, you may need to make an extension payment for tax due or file an amended return after receiving certification.
Pass-through entities: File Form TCA when allocating the credit to participants. File it within 30 days after the credit is granted, but at least 90 days before participants file their income tax returns. Send it to the same address or fax number, but do not do both. Give each participant a Schedule VK-1 and allocate the credit in proportion to ownership or participation.
Common mistakes
- Claiming the credit before approval. Wait for notification of the allowable credit amount.
- Claiming both credit options in one taxable year. Choose only one.
- Combining Port Job Tax Credits on one application. Complete a separate Form ITF for each Port Job Tax Credit.
- Reusing jobs that received the Major Business Facility Job Tax Credit. No credit is allowed for those same jobs.
- Skipping VPA validation summaries. Every applicant must submit summaries for both the current and prior taxable years.
- Entering an email address when you do not want electronic communications. Providing an email address consents to emailed communications about the application.
- Failing to file Form TCA for a pass-through allocation. This may cause the credit to be disallowed or delay processing of a participant’s return. Do not both mail and fax Form TCA.
Questions people ask
How much credit can I request?
The Port Job Tax Credit is $3,500 per qualifying employee, adjusted for employees who work fewer than 12 full months. The Port Investment Tax Credit is 2% of qualified capital investment. Total credits issued are capped at $1,250,000 per fiscal year. If requests exceed that amount, credits are allocated proportionately among qualified taxpayers.
Can I use the entire approved credit in one year?
The credit is limited to 50% of your tax liability for the taxable year. Unused credit can be carried forward for 10 years.
How is the job credit calculated for an employee who works only part of the year?
Multiply $3,500 by the number of full months the qualified full-time employee worked for the facility during the credit year, divided by 12.
What happens if my employee count falls after I receive a job credit?
Part or all of the Port Job Tax Credit may be recaptured if qualifying employment decreases during the five years after the credit year. Recapture first reduces unused credits and carryforwards before increasing tax liability.
Where can I get help?
For tax credit assistance, call the Virginia Department of Taxation at (804) 786-2992. For help with VPA validation or cargo verification, call (757) 391-6235 or email Helpdesk@vit.org.