TCA: Pass-through Tax Credit Allocation Form (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Form TCA is used by a pass-through entity to allocate a tax credit to taxpayers. It reports the credit type, amount granted or allocated, and each recipient’s identifying information and allocated amount. It cannot be used to allocate pass-through entity tax (PTET) credi
Who files this form
Pass-through entities use Form TCA to allocate a tax credit to the taxpayers listed in Section II. Any pass-through entity listed in Section II must complete a separate Form TCA.
A separate Form TCA is required for each credit certificate. Form TCA cannot be used to allocate pass-through entity tax (PTET) credits.
When it's due
For tax year 2024, the form says to file within 30 days of certification, but at least 90 days before the participants listed in Section II file their income tax returns. This timing helps avoid delays when those returns are processed.
What you'll need
- A copy of your credit certificate, which must be enclosed. Complete a separate Form TCA for each certificate.
- The filing entity’s name and FEIN, its parent’s FEIN if it is a subsidiary, fiscal or calendar-year status, disregarded-entity status, and tax year.
- The credit type, amount granted or allocated, and certificate number if applicable.
- Each recipient’s name, SSN or FEIN, mailing address, and allocated amount.
- The authorized representative’s signature, printed name, title, date, telephone number, and fax number.
Documentation will be required for any changes to the information provided.
How to file
- Make sure all businesses listed in Section II are registered with the Virginia Department of Taxation. If not registered, use iReg online or complete Form R-1.
- Complete Section I and check one credit type.
- List the recipients and their allocations in Section II. You may instead attach an enclosure listing only the required information.
- Show allocations in whole dollars. The Section II total must equal the amount in Section I, Line G.
- Have an authorized representative sign Section III and enclose a copy of the credit certificate.
Mail to:
Virginia Department of Taxation
Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715
Or fax to: (804) 774-3902.
For assistance, call (804) 786-2992.
Common mistakes
- Listing businesses before they are registered with the Department.
- Using cents instead of whole-dollar allocations, or entering a Section II total that does not match Section I, Line G.
- Leaving out the authorized representative’s signature or the required certificate copy.
- Using one Form TCA for multiple certificates. Each certificate requires a separate form.
- Not completing a separate Form TCA for a pass-through entity listed in Section II.
- Providing inaccurate information. Documentation is required for changes.
- Using Form TCA to allocate PTET credits, which is not allowed.
Questions people ask
Can I use Form TCA to allocate PTET credits?
No. The form directs you to the Form 502PTET Instructions for information on allocating PTET credits.
Must credits be allocated according to ownership?
Credits must be allocated by percentage of ownership or participation in the pass-through entity, except for these credits:
- Historic Rehabilitation Credit
- Qualified Equity and Subordinated Debt Investments Tax Credit
- Research and Development Expenses Tax Credit
- Major Research and Development Expenses Tax Credit
- Virginia Housing Opportunity Tax Credit
Can I attach the recipient information instead of entering it in Section II?
Yes. Section II information may be submitted as an enclosure, provided it lists only the required information.
What if a recipient is another pass-through entity?
Any pass-through entity listed in Section II must complete a separate Form TCA.