FORM 770 - Virginia Tax...The current interest factor may be obtained by calling the Department at 804-367-8031 or going to the Department’s website at . ALLOCATION OF INCOME TO

INSTRUCTIONS FOR COMPLETING

FORM 770VIRGINIA FIDUCIARY INCOME TAX

RETURNS FOR 2015

COMMONWEALTH OF VIRGINIADEPARTMENT OF TAXATION

RICHMOND, VIRGINIA

Va. Dept. of Taxation WEB 2601091 REV 10/15

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I. WHAT’S NEW

WHO MUST FILE A RETURNRESIDENT ESTATE OR TRUST: The fiduciary of a resident estate or trust must file a Virginia Fiduciary Income Tax Return (Form 770) if the estate or trust is required to file a federal Fiduciary Income Tax Return (Form 1041). “Resident estate or trust” means:

• Theestateofadecedentwhoatdeathwasdomiciled inVirginia;

• Atrustcreatedbythewillofadecedentwhoatdeathwasdomiciled in Virginia;

• A trust createdby,orconsistingofpropertyof,apersondomiciled in Virginia; or

• AnestateortrustthatisbeingadministeredbyaresidentofVirginia or that is under the supervision of a Virginia court.

NONRESIDENT ESTATE OR TRUST: The fiduciary of a nonres ident estate or trust must file a Virginia Fiduciary Income Tax Return (Form 770) if the estate or trust had income or gain derivedfromVirginiasourcesandwasrequiredtofileafederalFiduciary Income Tax Return (Form 1041). “Income or gain from Virginia sources” means items of income or gain derived from:

• RealortangiblepersonalpropertylocatedinVirginia;

• Abusiness, trade,professionoroccupationcarriedon inVirginia; or

• Intangiblepersonalproperty,includingannuities,dividends,interest,royaltiesandgainstotheextentthattheincomeisattributabletoabusiness,tradeoroccupationcarriedoninVirginia.

CHARITABLE REMAINDER TRUST: The fiduciary of a CharitableRemainderTrustmust file a Virginia FiduciaryIncome Tax Return (Form 770) and enclose a copy of the federal Split-Interest Trust Information Return (Form 5227).

SPECIAL INSTRUCTIONS: Check the box for “Exempt -CharitableRemainderTrust”undertheFEINarea.OnLine3,enterzerofortheamountofVirginiataxableincome.EnclosethefederalScheduleK-1andaworksheetreportingtheVirginiaincomereceivedbyrecipients.

WHO SHOULD FILE A RETURNAnestateortrustthatisnototherwiserequiredtofile,butwhichmadepaymentsofestimatedtaxorhadincometaxwithheldduringthetaxableyear,mustfileaVirginiaFiduciaryIncomeTax Return to claim a refund of those amounts.

PERIOD OF RETURN AND ACCOUNTING METHODThe accounting period and method of accounting for Virginia purposesmust be the same as the one used for federalpurposes. If the taxable year ormethod of accounting is

changedforfederalpurposes,thechangemustbeappliedtothe Virginia return.

SIGNATURE AND VERIFICATIONThereturnmustbesignedbythefiduciaryoranauthorizedofficer of the organization receiving or having custody or controlofthemanagementoftheestateortrust.Iftwoormoreindividualsactjointlyasfiduciaries,thereturnmaybesignedbyanyoneofthoseindividuals.

PENALTIES AND INTERESTPENALTIES:Afiduciarywhofailstofileorfilesafraudulentreturnmaybe subject to civil and/or criminal penalties andinterest charges.

Thecivilpenaltyforfailingtofileareturnbytheduedateis6%ofthe tax due for each month or part of a month from the due date throughthedatethereturnisfiled,uptoamaximumof30%.

Thecivilpenaltyforfailuretopaythetaxduebytherequiredduedateisalso6%ofthetaxdueforeachmonthorpartofamonthfromtheduedatethroughthedatethetaxispaid,uptoamaximumof30%.Thelatepaymentpenaltyisnotimposedforanymonthinwhichthelatefilingpenaltyhasalreadybeenapplied.The total combinedpenalties for late filingand latepaymentmaynotexceed30%ofthetaxduewiththereturn.

Thecivilpenaltyforfilingafalseorfraudulentreturn,orfailingorrefusingtofileanyreturnwiththeintenttoevadethetax,isanadditionalpenaltyof100%ofthecorrectamountoftaxdue.

INTEREST:Interestdueonanytaxand/orpenaltywillaccrueatthedailyrateestablishedaccordingtoVa. Code §58.1-15,fromthedatethetaxorunpaidbalancebecameduethroughthe date that payment is made. The daily interest rate is the federal“underpaymentrate,”plus2%.ThecurrentinterestfactormaybeobtainedbycallingtheDepartmentat804-367-8031 or goingtotheDepartment’swebsiteatwww.tax.virginia.gov.

ALLOCATION OF INCOME TO BENEFICIARIESVa. Code §§ 58.1-361 and 58.1-363 require the allocationof Virginiamodifications and Virginia taxable income tobeneficiariesbasedontheirrespectiveshareofthedistributablenetincomeoftheestateortrust.Ascheduleorotherstatementoftheincomeandmodificationsattributabletoeachbeneficiarymustbeprovidedtoeachbeneficiarybythefiduciary.Asampleformatisprovidedbelow.Anoptionalformatistoincludealineforthebeneficiary’snetVirginiamodificationsonthecopyofthefederalScheduleK-1providedtoeachbeneficiary.Ifthisoptionischosen,usethisdescriptionontheScheduleK-1:“InformationforVirginiaindividualincometaxreturn:NetVirginiamodifications: $ .”

Virginia’s Fixed Date Conformity with the Internal Revenue Code:Virginia’sdateofconformitywith the InternalRevenueCode(IRC)wasadvancedfromJanuary2,2013toDecember31,2014,withlimitedexceptions.VirginiawillcontinuetodisallowanybonusdepreciationallowedforcertainassetsunderIRC§§168(k),168(l),168(m),1400Land1400N;thefive-yearcarrybackoffederalnetoperatinglossdeductionsgeneratedinTaxableYear2008or2009;andfederalincometaxdeductionsforapplicablehighyielddiscountobligationsunderIRC§163(e)(5)(F).Atthetimetheseinstructionswenttoprint,theonlyrequiredadjustmentsfor“fixeddateconformity”werethosementionedabove.However,iffederallegislationisenactedthatresultsinchangestotheIRCforthe2015taxableyear,taxpayerswillberequiredtomakeadjustmentstotheirVirginiareturnsthatarenotdescribedintheinstructionbooklet.InformationaboutanysuchadjustmentswillbepostedontheDepartment’swebsiteatwww.tax.virginia.gov.

II. GENERAL INFORMATION

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Itisnotacceptabletorequirethebeneficiarytocomputehisorherownmodificationfromthefederalinformationprovidedonthe federal Schedule K-1.

IfthebeneficiarieswillqualifyforthecreditsavailabletoForm770filers,thefiduciarymustprovideeachbeneficiarywiththeinformation from Schedule 5 necessary to compute and/or claim the credit(s).

RECORD KEEPINGFiduciaries should retain the records pertaining to each income taxreturnoftheestateortrustfor3yearsfromtheduedateofthereturnorthedatethereturnwasfiled,whicheverislater.Ifthe IRS extends the time required for the retention of federal records,theVirginiarecordsshouldbekeptforthesameperiodof time.

SETOFF DEBT COLLECTION ACTBefore any refund canbe issued,Virginia law requires theDepartmentofTaxationtocheckforoutstandingdebtsofthetaxpayerwith agencies of theCommonwealth of Virginia,Virginialocalgovernments,theVirginiacourtsystemandtheIRS.Ifanydebtsarefound,regardlessofthetypeoftaxreturnfiled,allorpartoftherefundmaybewithheldtosatisfythedebt.

III. FILING INFORMATION

WHERE TO GET FORMS AND ASSISTANCEAssistance is available at the offices of theCommissionerof the Revenue, Director of Finance or Director of TaxAdministration of everyVirginia county and city.Addressesandtelephonenumbersfortheseofficesareavailableatthebackoftheseinstructions.SincetheVirginiareturnisbasedon federal information,youshouldhaveacompletecopyofthefederalForm1041onhandwhenyoucontactanyoftheaboveoffices.YoucandownloadmostVirginiataxformsfromtheDepartment’swebsite: www.tax.virginia.gov. Youmayorder forms from the Department of Taxation at 804-367-8031. Address requests for information to Virginia Department of Taxation, P.O. Box 1115, Richmond, VA 23218-1115 or call 804-367-8031. Do NOT file the return at this address. TenemosserviciosdisponibleenEspañol.

WHERE TO FILEForm770mustbefiledwiththeCommissioneroftheRevenue,DirectorofFinanceorDirectorofTaxAdministration for thecityorcountyinwhichthefiduciaryqualified.IftherehasbeennoqualificationinVirginia,thereturnshouldbefiledwiththeVirginia city or county inwhich the fiduciary resides, doesbusiness,orhasanoffice,orwhereoneofthebeneficiariesresides.Themailingaddressesforthelocalofficesareavailableatthebackoftheseinstructions.

Col. 1 Col. 2 Col.3 Col. 4

NameandSocial Security

Numberof Each

Beneficiary

Share of Federal

DistributableNetIncome

Percentage of Federal DistributableNetIncome

Share of Virginia Modifications (Multiply thepercentageinCol.3bythetotalmodificationsfromForm770,Schedule

3,Line11)

WHEN TO FILE AND PAY THE TAXCalendaryearfilersmustfileForm770nolaterthanMay2,2016. Fiscal year returns are due to no later than the 15th day ofthe4thmonthfollowingthecloseofthetaxableyear.IftheduedatefallsonaSaturday,Sundayorlegalholiday,thereturnmustbefiledbythenextsucceedingdaythatisnotaSaturday,Sundayorlegalholiday.Thereturnmustbeaccompaniedbyfull payment of the tax due as reported on the return. Make checks payable to Treasurer of the city or county where the return is filed.

ESTIMATED TAXTRUSTS: Trusts must make payments of estimated tax if the incometaxliabilityonForm770forthetaxableyearwillexceed$150.

ESTATES: Estates are not required to make estimated tax paymentsuntilthefirsttaxableyearthatends1yearormoreafter the decedent’s date of death. Estimated tax payments mustbemadeforthattaxableyearandsubsequenttaxableyearsiftheincometaxliabilitywillexceed$150.

Estimated tax payments are made on Form 770ES. If Form 770ESisneeded,see“WheretoGetFormsandAssistance”earlier in this section. If theestimated tax is underpaid, thefiduciarymaybesubjecttoanadditiontotax.

ADDITION TO TAX FOR UNDERPAYMENT OF ESTIMATED TAX, FORM 760C OR FORM 760FAnadditiontotaxisassessedifthefiduciarydidnotpayenoughestimated tax through timely payments or did not have enough incometaxwithheldthroughouttheyear.Theadditiontotaxdoes not apply if each payment is made on time and:

1. thetotaltaxpaid(includingtaxwithheldandtimelyestimatedtaxpaid)wasatleast90%(662/3%forfarmers,fishermenormerchantseamen)ofthetotal2015taxliabilityor100%of the income tax liability for 2014.To determine if therequirement ismet, reduce the tax by the amount of allnonrefundablecredits;

2. the sum of installment underpayments for the year is $150 or less; or

3. youqualifyforoneoftheexceptionsshownonForm760C(Form760Fforfarmers,fishermenormerchantseamen).

Iftheestateortrustissubjecttotheadditiontotaxforunderpay-mentofestimatedtax,completeForm760Cor760Fandpaythe amount computed on Form 760C or 760F. Computation of the Virginia underpayment of tax is similar to the federal computation.TheadditiontotaxisreportedonForm770bycompletingLine11ofSchedule1.

EXTENSION OF TIME FOR FILINGYouareallowedanautomatic6-monthextensionoftimetofileyour tax return. This provision does not extend the due date for paymentoftaxes;however,youmustpayatleast90%ofyourtaxbytheoriginalduedateforfilingthereturn(May2,2016for calendar year filers). To make a payment of tentative tax bytheduedate,useForm 770IP. If you file your return during theextensionperiod,butdonotpaythetaxduewhenyoufileyourreturn,boththeextensionpenaltyandthelatepaymentpenaltymayapply.Theextensionpenaltywillapplyfromthedue date of the return through the date the return is filed and thelatepaymentpenaltywillapplyfromthedatethereturnisfiled through the date of payment. To avoid paying the late

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paymentpenaltyduring theextensionperiod,youmustpayanytaxowedwhen you file the return.Ifyoufileyourreturnwithin6monthsfromtheduedate,butyoudonotpayatleast90%ofyourtaxbytheoriginalduedateforfilingyourreturn,youwillbesubjecttoanextensionpenaltyof2%permonth.Thepenaltyisappliedtothebalanceoftaxduewiththereturnfromtheoriginalduedatethroughthedateofpayment.Themaximumextensionpenaltyis12%ofthetaxdue.Ifyoufilemorethan6monthsaftertheoriginalduedate,theextensionprovisionswillnotapply,andyouwillbesubjecttothelatefilingpenalty.Inadditiontothesepenalties,youwillbesubjecttointerestchargesonanybalanceoftaxduewithyourreturn,evenifyoumeetthe90%paymentrequirement.

ItisnotnecessarytofileForm770IPifyouareCERTAINthatyourtaxreturnwillresultinarefundbecausepenaltiesarenotassessedonarefundreturn;however,bylawtheDepartmentofTaxationmayissuearefundonlyifthereturnisfiledwithin3yearsoftheoriginalduedateorextendedduedateonthereturn,whicheverislater.

AMENDED RETURNS AND FEDERAL ADJUSTMENTSIf an amended federal income tax return is filed to change the federal taxable incomeof the fiduciary,or if the IRSadjuststheincomeofthefiduciary,anamendedVirginiareturnmustbefiledwithin1year.Anytaxpayerfilinganamendedfederalreturn must also file an amended Virginia return and pay any additionaltaxandinterest.Inaddition,ifyoufileanamendedreturnwithanyotherstatethatresultsinachangethatwouldaffect yourVirginia income tax, youmust file an amendedVirginiataxreturnwithin1year.

If the changes or adjustments result in a decrease in the fiduciary’s income tax liability, Virginia law allows theDepartment of Taxation to issue a refund only if the amended returnisfiledwithin:

• 3 years from the due date for filing the original return,including filing extensions;

• 1 year from the final determination date for the amended federal return or federal change, whichever is later,providedtherefundrequestedisattributableonlytosuchchange or adjust ment;

• 1 year from the final determination of the amended return of any other state or change or correction in the income tax ofthetaxpayerforanyotherstate,providedthattherefunddoes not exceed the amount of the decrease in Virginia tax attributabletosuchchangeorcorrection;

• 2 years from the filing of an amended Virginia return resultinginpaymentofadditionaltax,providedtheclaimfor refund raises issues pertaining solely to the prior amended return and the claim does not exceed the amount of additional tax paid as a result of such prior amended return; or

• 2yearsfromthepaymentofanassessment,providedtheamended return raises issues relating only to the prior assessment and the refund does not exceed the amount of tax paid on the prior assessment.

HOW AND WHERE TO FILE AN AMENDED RETURNToamendForm770,obtainablankForm770for thesametaxableyearandwrite “AMENDED”at the toporcheck the

Amendedbox.Then complete the formusing the correctedfigures as if it were the original return. Do notmake anyadjustmentstothereturntoshowrefundsreceivedorbalancespaidwiththeoriginalreturn.

Enclose a complete copy of the amended federal return or federal adjustments, as well as a statement explaining any other changes made to the Virginia return.

Youwillbecontactedifadditionalinformationisneeded.FiletheamendedreturnwiththeCommissioneroftheRevenue,DirectorofFinanceorDirectorofTaxAdministrationforthecityorcountywheretheoriginalreturnwasfiled(seethe“Whereto File” section for further information). Mailing addresses are atthebackoftheseinstructions.

IV. CREDITS

GENERAL INFORMATION:The following rulesapplywhencomputing tax credits:

• Whereacreditislimitedtoapercentageofthetax,the“tax”forthispurposeshallbegrosstax,lessthecreditfortaxespaid to other states.

• Otherincometaxcreditsshouldbeclaimedintheorderinwhichtheyprovidethemaximumbenefit,regardlessoftheordershownontheform.

• Claimonlyasmuchcreditascanbeusedtooffsettaxliabilityandkeepaccurate recordsof thecarryoveravailable foreach credit.

• Each pass-through entitymust file FormPTEwith theDepartmentofTaxationwithin30daysafter thecredit isgrantedandatleast60daysbeforefilingtheirincometaxreturn.AcopyofthecertificationletterfromtheadministeringagencyisarequiredenclosurewithFormPTE.

CREDIT FOR TAX PAID TO ANOTHER STATERESIDENT FIDUCIARY:

AresidentfiduciaryisrequiredtoreportitsentirefederaltaxableincomeonForm770,regardlessofwhethertheentireincomewasderivedfromsourcesinVirginia.Ifthefiduciaryisliableforpaymentofincometaxestoanotherstateonearnedorbusinessincomederivedfromthatstate,oranygain(ifincludedinfederaladjusted gross income) on the sale of a capital asset outside Virginia,providedtheincomeistaxedbyVirginiaaswellastheother state (see Va. Code §58.1-332forinformationoncapitalassets),acreditisgenerallyallowedfortaxespaidtotheotherstate,providedtheincomeistaxablebothtoVirginiaandtheotherstate.ThecreditiscomputedonForm770,Schedule4.

EXCEPTION: AVirginia fiduciary derivingbusinessincomeasa nonresident inArizona,California, theDistrictofColumbiaorOregonmaynot claim a credit on the Virginia return for taxes paid to those states. The creditmustbeclaimedontheotherstate’snonresidentfiduciary income tax return.

This credit applies only to income taxes paid to other states. Taxes paid to cities, counties, the federal government andforeign governments do not qualify for the credit. The credit is not allowed for franchise tax, license tax, excise tax,unincorporatedbusinesstax,occupationtaxoranyothertaxcharacterizedassuch,eventhoughthetaxisbasedonbusiness income.Inaddition,thecreditisnotallowablefortaxespaidtoanystatethatisprohibitedbyitsownlegislationfromimposingan income or commuter tax.

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Acompletecopyoftheincometaxreturnfiledwithanystate(s)forwhichacreditisclaimedmustbeenclosedwithForm770.Copies of cancelled checks or other income statements are notsufficient forverificationof the income tax liability to theother state.

NONRESIDENT FIDUCIARY:Asageneralrule,Virginialawdoes notprovideacredittoanonresidentfiduciaryonbusinessincome taxable by bothVirginia and the fiduciary’s state ofresidence.Therefore,suchcreditstypicallymustbeclaimedontheincometaxreturnfiledwiththestateofresidence.

EXCEPTION: IfthenonresidentfiduciaryisliableforincometaxesasaresidentofArizona,California,theDistrictofColumbiaorOregononincomederivedfromVirginiasources,creditfortaxpaidtothatstatewillbeallowedontheVirginiareturn.

Acompletecopyoftheincometaxreturnfiledwithanystate(s)forwhichacreditisclaimedmustbeenclosedwithForm770.Copies of cancelled checks or other income statements are notsufficient forverificationof the income tax liability to theother state.

NEIGHBORHOOD ASSISTANCE ACT TAX CREDIT

TheVirginiaNeighborhoodAssistanceActprovides taxcredits to individualsandbusinessesthatmakequalifieddonationsdirectlytopre-approvedNeighborhoodAssistanceProgramorganizationswhoseprimaryfunctionistoprovideeducationalorotherqualifiedservicesforthebenefitoflow-income families. Individuals may receive a credit for a donation ofcashormarketablesecuritiestoaneligibleorganization.Businessesmayreceiveacredit foradonationofmoney,marketablesecurities,property,limitedprofessionalservicesorcontractingservices.Licensedveterinarians,physicians,dentists,nurses,nursepractitioners,physicianassistants,chiropractors,optometrists,dentalhygienists,pharmacists,professionalcounselors,clinicalsocialworkers,clinicalpsychologists,marriageand family therapists,physicaltherapists,andphysicianspecialistswhodonatetheirservicesforanapprovedclinicmayalsobeeligibleforcredits.TheamountofcreditattributabletoapartnershiporScorporationmustbeallocatedtothepartnersandshareholdersinproportiontotheirownershiporinterestinthepartnershiporScorporation.Anyunusedtaxcreditsmaybecarriedforwardforthenextfivetaxableyears.Foralistofapprovedorganizationsoradditionalinformation,contact theVirginia Department of Social Services, Neighborhood Assistance Program, 801 E. Main Street, 25th Floor, Richmond, VA 23219-3301 or the Virginia Department of Education, P.O. Box 2120, Richmond, VA 23218-2120, Attn: Neighborhood Assistance Tax Credit Program for Education.

MAJOR BUSINESS FACILITY JOB TAX CREDITIndividuals,estates,trusts,corporations,banks, insurancecompanies and telecommunications companies may claim a Virginiataxcreditifthetaxpayercreatesatleast50newfull-timejobsinconnectionwiththeestablishmentorexpansionofamajorbusinessfacility,andthecompanyisengagedina qualifying industry in Virginia. If a taxpayer is located in an enterprise zone or in an economically distressed area (as definedbytheVirginiaDepartmentofEconomicDevelopment),thethresholdisreducedfrom50to25.Creditswillberecaptured

proportionately if employment decreases during the 5 years followingtheinitialcredityear.

Thisnonrefundablecreditisequalto$1,000perqualifyingnewjobinexcessofthe50/25jobthresholdinenterprisezonesor economically distressed areas. This credit is spread over 2yearsfortaxpayerswhosecredityearbeginsonorafterJanuary1,2009.

ThecreditonlyappliestofacilitieswhereanannouncementtoexpandorestablishsuchafacilitywasmadeonorafterJanuary1,1994.Thecreditmustbeclaimedratablybeginningwiththetaxableyearfollowingtheyearinwhichthefacilityisestablishedorexpanded,orthenewqualifyingjobsareadded.Unusedcreditsmaybecarriedforwardforthenext10taxableyears.AqualifiedbusinessfirmreceivinganEnterpriseZoneJobCreationGrantunderVa. Code§59.1-547shallnotbeeligibletoreceiveaMajorBusinessFacilityJobTaxCreditforanyjobusedtoqualifyfortheEnterpriseZoneJobCreationGrant.

Toapplyforthiscredit,completeForm 304.AllapplicationsmustbesubmittedtotheDepartment of Taxation, Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-0715 90 days prior to the duedateofyourreturn.Aletterwillbesenttocertifythecredit.

HISTORIC REHABILITATION TAX CREDIT Individuals,estates,partnerships, trustsorcorporationsincurringeligibleexpensesintherehabilitationofacertifiedhistoric structure are entitled to claim a credit against the tax imposedbyVa. Code §§58.1-320etseq.,58.1-360etseq.,58.1-400etseq.,58.1-1200etseq.,58.1-2500etseq.or58.1-2620etseq.Thecreditisequalto25%ofeligiblerehabilitationexpenses for projects completed in 2000 and thereafter. To qualify,thecostoftherehabilitationmustequalatleast50%(25%ifthebuildingisanowneroccupiedresidence)oftheassessedvalueofthebuildingforlocalrealestatetaxpurposesintheyearprecedingthestartoftherehabilitation.Unusedcreditmaybecarriedforwardfor10years.TherehabilitationworkmustbecertifiedbytheVirginiaDepartmentofHistoricResourcesasconsistentwiththeSecretaryoftheInterior’sStandardsforRehabilitation.Certificationofbuildingsandrehabilitationsare issuedby theDepartmentofHistoricResources.ApplicationsforcertificationmaybeobtainedbywritingtotheVirginia Department of Historic Resources, 2801 Kensington Avenue, Richmond, VA 23221, 804-367-2323, orbyvisitingwww.dhr.virginia.gov.

LOW-INCOME HOUSING TAX CREDITTheBoardofHousingandCommunityDevelopmentstoppedapprovingLow-IncomeHousingCreditsbeginningJune30,2010.Onlycarryovercreditsfromprioryearsareallowed.Foradditionalinformation,contacttheDepartment of Housing and Community Development at 804-371-7000.

BARGE AND RAIL USAGE TAX CREDITAnincometaxcreditisallowedfortransportingcargocontainersbybargeandrailratherthanbytrucksorothermotorvehiclesontheCommonwealth’shighways.Theamountofthecreditis$25per20-footequivalent,unitor16tonsofnoncontainerizedcargooroneunitof roll-on/roll-offcargomovedbybargeorrailratherthanbytrucksorothermotorvehiclesonVirginia’shighways.Containersforwhichthiscreditisclaimedmustresultfromadiversionofshipmentsfromthehighways.Toreceiveacredit,aninternationaltradefacilityisrequiredtoapplytotheVirginiaDepartmentofTaxation.Nomorethan$500,000intax

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creditscanbeissuedinanyfiscalyear.TheDepartmentwilldeterminetheallowablecreditamountforthetaxableyearandprovideawrittencertificationoftheallowablecreditamounttoeach taxpayer.

ThebusinessmustapplybyApril1stusingForm BRU.Submittingalateapplicationwilldisqualifyyoufromthecredit.AllapplicationsmustbesenttotheVirginia Department of Taxation, Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-0715. This credit requirescertificationfromtheTaxCreditUnittobeclaimedonyourtaxreturn.Aletterwillbesenttocertifythecredit.ForassistancewritetotheDepartment of Taxation, Tax Credit Unit, P. O. Box 715, Richmond, VA 23218-0715 or call 804-786-2992.

WORKER RETRAINING TAX CREDITThis credit allows an employer to claim a tax credit forthe training costs of providing eligibleworker retraining toqualified employees. “Eligible worker retraining” includesnoncreditcoursesthatareapprovedbytheVirginiaEconomicDevelopmentPartnership (VEDP) and that are providedbyanyoftheCommonwealth’scommunitycollegesoraprivateschool.Eligibleworkerretrainingprogramsalsoincludecourses(credit and noncredit) undertaken through an apprenticeship agreementapprovedby theVirginiaApprenticeshipCouncil.Thecreditis30%ofallexpenditurespaidorincurredbytheemployerduringthetaxableyear,subjecttocertainlimitations.For taxableyearsbeginningprior toJanuary1,2013, if theeligibleworkerretrainingconsistsofcoursesconductedataprivate school, the credit cannot exceed$100per qualifiedemployeeannually. For taxable years beginningonor afterJanuary1,2013,iftheeligibleworkingretrainingconsistsofcoursesconductedataprivateschool,thecreditcannotexceed$200perqualifiedemployeeannually,or$300perqualifiedemployeeannuallyiftheeligibletrainingincludesretraininginaSTEMorSTEAMdiscipline.ASTEMorSTEAMdisciplineisdefinedasascience, technology,engineering,mathematicsor appliedmathematics relateddiscipline as determinedbyDBA.ThetermSTEMorSTEAMincludeshealth-carerelateddiscipline.

Employersmustapplyforcertificationoftheamountofallowablecredit using Form WRC,WorkerRetrainingTaxCredit,byApril1oftheyearfollowingtheyearinwhichthetrainingexpenseswerepaidorincurred,beforeclaimingthecreditontheirincometaxreturn.AllapprovedbusinessesfilingatimelyForm WRC willbenotifiedoftheirallowablecreditbyJune30.ThemaximumWorker Retraining Tax Credits granted to all employers is limited to$2,500,000annually.Ifthetotalcreditsapprovedexceedthisamount,theamountofallowablecreditforeachemployerwillbeproratedaccordingly.ThecreditisallowableagainstIndividualIncomeTax,Fiduciary IncomeTax,Corporation IncomeTaxandBankFranchiseTax.ThecreditisalsoallowableagainstInsurancePremiumsLicenseTaxand tax imposedonutilitycompanies (under Va. Code §§ 58.1-2500 et seq. and 58.1-2620 etseq.).Thiscreditisnonrefundable,butexcesscreditmaybecarriedforwardforthenext3taxableyears.Forinformationonpre-approvedapprenticeshipprograms,contact the Virginia Department of Labor and Industry at 804-225-4362. For informationonnoncredit courseapproval,write to:Virginia Economic Development Partnership, 901 East Byrd Street, Richmond, VA 23219 or call (804) 545-5706.

QUALIFIED EQUITY AND SUBORDINATED DEBT INVESTMENTS TAX CREDITTaxpayers making a “qualified investment” in the form of equity orsubordinateddebtina“qualifiedbusiness”maybeeligibleforthis credit. Businesses may apply for designation as a qualified businessusingForm QBA. The qualification is valid only for the calendaryearoftheapplication.Therefore,thebusinessneedstoreapplyeachyearforqualification.Toqualify,thebusinessmust(1)haveannualgrossrevenuesofnomorethan$3millioninitsmostrecentfiscalyear,(2)haveitsprincipalofficeorfacilityintheCommonwealth,(3)beengagedinbusinessprimarilyinorhavingsubstantiallyallofitsproductionintheCommonwealthand(4)havenotobtainedduringitsexistencemorethan$3million in aggregate gross cash proceeds from the issuance of itsequityordebtinvestments(notincludingcommercialloansfromcharteredbankingorsavingsandloaninstitutions).

Thecredit equals50%of thequalifiedbusiness investmentsmadeduringthetaxableyear.Forthe2015taxableyearthetotalamountofcreditgrantedislimitedto$5million.One-halfofthisamountmustbeallocatedtocommercializationinvestmentsandtheotherhalfisavailableforallotherqualifyinginvestments.Ifcreditapplications foreitherhalfexceed theallowedamount,thecreditsforthathalfwillbeprorated.Ifcreditapplicationsforeitherhalfarelessthantheallowedamount,thebalancewillbeavailableforallocationtotheotherhalf.Thetotalamountofcreditthatmaybeusedpertaxpayerpertaxableyearmaynotexceed$50,000.Thecreditisnonrefundable.Unusedcreditsmaybecarriedforwardforupto15years.Exceptincertaininstancesequityanddebtinvestmentsheldinconnectionwithaqualifiedbusinessinvestmentmustbeheldbytheinvestorforatleast3fullcalendaryearsfollowingthecalendaryearforwhichthecreditisallocated.Iftheholdingperiodisnotmet,theunusedcreditamountwillbeforfeited,andanassessmentwillbeissuedfortheamountusedtowhichshallbeaddedinterest,computedattherateof1%permonth,compoundedmonthlyfromthedatethetaxcreditswereclaimed.

Taxpayers cannot receive a grant from the Small Business InvestmentGrant Fundand claim theQualifiedEquity andSubordinated Debt Investments Tax Credit for the sameinvestment.

This credit requires pre-approval by theDepartment of Taxation. InvestorsmustapplytotheDepartmentbyApril1oftheyearfollowingtheyeartheinvestmentwasmadeusingForm EDC. Taxpayers filing Form EDC after April 1 will be denied this credit. Since the tax return of most individuals isdueonMay1,most investorswillneedtofileareturnonextension or amend their original return to claim the credit.

Pass-through entities must file Form PTEwiththeDepartmentofTaxationatleast60daysbeforefilingtheirincometaxreturn.AcopyofthecertificationletterfromtheDepartmentofTaxationis a required enclosure to Form PTE.

Visit theDepartment’swebsite atwww.tax.virginia.gov to obtainForm QBA, Form EDC and Form PTE. Information ontheapplicationprocessmaybeobtainedbywritingtotheVirginia Department of Taxation, Tax Credit Unit, P. O. Box 715, Richmond, VA 23218-0715, orbycalling 804-786-2992.

COALFIELD EMPLOYMENT ENHANCEMENT TAX CREDITFor taxable years beginning on or after January 1, 1996,but before January1, 2017,a tax creditmaybeearnedbyindividuals, estates, trusts and corporations that have an

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economicownershipinterestincoalthatwasminedinVirginia.CreditsmaybeclaimedfortaxableyearsbeginningonorafterJanuary1,1999.ComputetheallowablecreditonForm 306 for thetaxableyearinwhichthecreditisclaimedand/orearned.If you are reporting an earned amount for taxable year 2015, you must also complete Line 10 of Schedule 1. Enclose Form 306with completed schedules, if appropriate. See “WhattoEnclose” on the instructions for Form306 for additionalenclosure requirements and information.

VIRGINIA COAL EMPLOYMENT AND PRODUCTION INCENTIVE TAX CREDITThiscreditmaybeallocatedbetweenaqualifyingelectricitygeneratorandqualifyingpersonwithaneconomicinterestincoal.Theallocationofthiscreditmaynotexceed$3perton.AllcreditsearnedonorafterJanuary1,2006,orpriortoJuly1, 2016,which are allocated to personswith an economicinterest incoalmayberedeemedbytheTaxCommissionerif thecreditsexceed the taxpayer’s state tax liability for theapplicabletaxableyear.YoumustcompleteForm 306,Form 306T and any necessary enclosures to claim this credit. See “WhattoEnclose”ontheinstructionsforForm306foradditionalenclosure requirements and information.

LAND PRESERVATION TAX CREDITThis tax credit is for taxpayers that convey land or an interest inlandlocatedinVirginiatoapublicorprivateagencythatiseligibletoholdsuchlandorinterestthereinforconservationorpreservationpurposes.Theconveyancemustbeinperpetuity.

Creditsgrantedpriorto2007are50%andthecreditsgrantedfor 2007 and beyond are 40%of the fairmarket value, assubstantiatedbya“qualifiedappraisal”preparedbya“qualifiedappraiser”, as those terms are defined under applicablefederallawandregulationsgoverningcharitablecontributions.Beginningwiththe2015calendaryear,themaximumamountofcreditsthatmaybeissuedinacalendaryearmaynotexceed$75million.ForTaxableYears2009,2010,and2011,thetotalamountofcreditpertaxpayerpertaxableyearwaslimitedto$50,000orthetotaltaxliability,whicheverwasless.ForTaxableYears2012,2013,and2014,thecreditlimitpertaxpayerpertaxableyearwas$100,000orthetotaltaxliability,whicheverwasless.ForTaxableYears2015and2016,thecreditlimitpertaxpayerpertaxableyearis$20,000orthetotaltaxliability,whicheverisless.ForTaxableYear2017andthereafter,thecreditwillbelimitedto$50,000pertaxpayerpertaxableyearorthetotaltaxliability,whicheverisless.Effectiveforthetaxyear2017andforeverytaxableyearthereafterthetotalcreditwillbe$50,000.However,foranyfeesimpledonationoflandconveyedtotheCommonwealthonorafterJanuary1,2015,theamountofthecreditclaimedissubjecttoahigherlimitationof$100,000pertaxpayerforeachtaxableyear,providedthatnopartofthecharitablecontributionsdeductionunder§170ofthe Internal Revenue Code related to such fee simple donation isallowablebyreasonofasaleorexchangeofproperty.Fortaxpayersaffectedbytheusagelimitsfortaxableyears2009and2010,anadditional2-yearcarryforwardwillbeaddedtothecredit.Fortaxpayersaffectedbytheusagelimitsfortaxableyears 2011 and 2015 and thereafter, an additional 3-yearcarryforwardwillbeadded to thecredit. Anyunusedcreditnotaffectedbythecarryforwardperiodswillretaintheoriginalcarryforwardperiods(5yearsfordonationsoriginatingpriortoJanuary1,2007and10yearsfordonationsoriginatingonorafterJanuary1,2007).

Any taxpayer holding Land PreservationTaxCredits thatoriginatedonorafterJanuary1,2002,maytransferunusedbut otherwiseallowable credits for usebyanother taxpayeron such taxpayer’s Virginia income tax return. Transfers and pass-through allocations derived from donations recorded on orafterJanuary1,2007,aresubjecttoafee.SeeScheduleAofFormLPC-1orFormLPC-2forfurtherinformation.

Ifthiscreditistaken,thenforthenext3yearstaxpayerscannottakeasubtractionforthegainonthesaleoflandoreasementsdedicatedtoopen-spaceuse.Asubtractionisallowedforanygainor incomerecognizedbya taxpayeron theapplicationofaLandPreservationTaxCreditagainstaVirginia incometax liability to theextent that thegain is included inandnototherwisesubtractedfromfederaladjustedgrossincome.Thetransferofthecreditanditsapplicationagainstataxliabilityshall not create gain or loss for the transferor or the transferee.

Beforeclaimingthecredit,completeandfileFormLPC-1and/orFormLPC-2with theDepartmentofTaxationat least90daysbeforefilinganannualreturn.ForlandoraninterestinlandconveyedonorafterJuly1,2015,nocreditwillbeallowedunless a completed credit applicationwith regard to suchconveyancehasbeen filedwith theDepartmentofTaxationbyDecember31oftheyearfollowingthecalendaryearoftheconveyance.Additionally,applicantsfilingfortaxcreditsof$1million or more must apply to the Department of Conservation and Recreation to receive verification of the conservation value. TheDepartmentofTaxationwillissuealetteracknowledgingtheamountofthecredit.ForassistancewritetotheVirginia Department of Taxation, Tax Credit Unit, P. O. Box 715, Richmond, VA 23218-0715,orcall804-786-2992.

V. OTHER CONSIDERATIONS FOR FIDUCIARIES

Inaddition to the filingof incometaxreturns, fiduciariesaregenerallyresponsibleforensuringthatallVirginiataxobligationsofanestateortrusthavebeenfulfilled.Theinformationinthissection provides details on the settlement of accounts and outlinesotherVirginiataxesforwhichanestateortrustmay

beheldliable.

SETTLEMENT OF ACCOUNTSInconnectionwiththesettlementoffiduciaryaccounts,specialattention should begiven to the provisions ofVa. Code §§ 58.1-22and58.1-23,dealingwiththecollectionoftaxesandlevies upon property under the control of the fiduciaries and the courts.Thesectionsaresetoutbelow.

Va. Code § 58.1-22. Accounts Not Settled Until Taxes Paid or Provided for –No commissionerofaccountsshall, underVa. Code § 64.2-1211, fileany report of an account of the transactions of any fiduciarynotgovernedbyVa. Code § 58.1-911 until the commissionerfindsthatalltaxes,whetherstate,countyorcity,assessedandchargeableuponthepropertyinthehandsofthepersonforwhomsuchaccountissettledhavebeenpaidorunlesssuchaccountshallshowthatthereremainsinthehandsofsuchpersona sufficient sum, over and above the charges ofadministration,topayalltaxeschargedagainstsuchperson in his capacity as fiduciary.

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Va. Code § 58.1-23. Inquiries Required of Fiduciaries –Everypersonal representative,beforesettling theestateinhishands,shallmakeinquiryofthetreasurerofthecountyorcitywhereinthedecedentlastresidedandoftheDepartmentwithrespecttoanyunpaidtaxesand levies assessed against his decedent.

Inquiries made with respect to the provisions of Va. Code § 58.1-23 should be addressed to the Virginia Department of Taxation, Customer Services, P.O. Box 1115, Richmond, VA 23218-1115.

UNIFIED FILINGFiduciariesmay request to file, on behalf of nonresidentbeneficiariesorparticipants,aunifiedreturntherebyrelievingthesepersonsorentitiesoftheresponsibilityoffilingaVirginianonresident income tax return. There are certain conditions that mustbemetinordertobegrantedapprovaltofileaunifiedreturn. For further information call the Department of Taxation, Customer Services at 804-367-8031.

PROBATE TAX (TAX ON WILLS AND ADMINISTRATIONS)Astate tax is imposedon theprobateofwillsandgrantsofadministrationthatarenotexemptbylaw.Aprobatetaxreturnmust be filedwith the clerk of the court at the time thewillisofferedforprobate,orgrantofadministration issought, iftheestateexceeds$15,000 invalueat thedateofdeathofthedecedent.There isnoprobate taxonestatesvaluedat$15,000orless.Forestatesexceeding$15,000invalue,thetax is 10 cents per $100, or fraction of $100, including thefirst$15,000.Inaddition,thecountyorcityinwhichthewillisofferedforprobate,orgrantofadministrationissought,mayalsoimposealocalprobatetaxequalto1/3ofthestatetax.For further information on the probate tax, contact the Clerk of the Circuit Court in the appropriate jurisdiction, or the Department of Taxation at 804-367-8031.

ESTATE TAXVirginia lawdoesnot currently imposeanestate taxon theestatesofdecedentswhosedateofdeathisonorafterJuly1,2007.Forfurtherinformation,visittheDepartment’swebsiteat www.tax.virginia.gov, call 804-367-8031, or write to Virginia Department of Taxation, P.O. Box 1115, Richmond, VA 23218-1115.

CONSUMER’S USE TAXIfanestateortrustthatisnotengagedinatradeorbusinessisnotchargedsalestaxonpurchasesoftangiblepersonalproperty(otherthanforresale),itmustfileaVirginiaConsumer’sUseTaxReturnforIndividuals,Form CU-7.

Form CU-7 and the tax are due the same day that the income taxreturnisdue.IffilingataxdueForm770return,donotsendasinglepaymenttocoverboththefiduciaryreturnliabilityandtheconsumer’susetaxliability.Form CU-7mustbefiledseparately.

Ifengagedinatradeorbusiness,fileaVirginiaConsumer’sUseTaxReturn,Form ST-7. Form ST-7 and the tax are due bythe20thdayofthemonthfollowingthemonthinwhichthepurchasewasmade.

If the totalamountofpurchaseswere fromout-of-statemailorder catalog(s) ONLY and totaled $100 or less for the entire year,youarenotrequiredtopaytheusetax.Ifthepurchaseswerefromout-of-statemailordercatalog(s)andexceed$100

orthepurchaseswereofanyamountfromsourcesotherthanmailordercatalog(s), thenyoumustreportthesepurchasesand pay consumer’s use tax on the TOTAL amount of untaxed purchases from all sources during the calendar year. Nonprescriptiondrugsandproprietarymedicinespurchasedforthecure,mitigation,treatmentorpreventionofdiseasesinhumanbeingsareexemptfromtheconsumer’susetax.

EffectiveonJuly1,2013, thestatewideretailsalesandusetax ratewas increased from5% to5.3%. In addition to thestatewide increase, there is an additional 0.7% increase inlocalitiesincludedintheNorthernVirginiaandHamptonRoadsregions. These changes apply to general retail sales only and do not impact the rate charged for sales of food for home consumption. The sales tax rate on food purchased for home consumptionremains2.5%.

Forfurtherinformationontheconsumer’susetax,visitwww.tax.virginia.gov,writetothe Virginia Department of Taxation, P.O. Box 1115, Richmond, VA 23218-1115 or call 804-367-8037.

LITTER TAXLittertaxisreportedonaseparatereturn,Form 200. This tax isimposedonevery“person,”whoonJanuary1ofthetaxableyear,wasengagedinbusinessasamanufacturer,wholesaler,distributororretailerofthefollowingproducts:foodforhumanorpetconsumption;groceries;cigarettesandtobaccoproducts;softdrinksandcarbonatedwaters;beerandmaltbeverages;wine; newspapers andmagazines; paper products andhouseholdpaper;glassandmetalcontainers;plasticorfibercontainers made of synthetic materials; cleaning agents and toiletries; nondrug drugstore sundry products; distilled spirits; andmotorvehicleparts.“Person”meansanynaturalperson,corporation,partnership,administrator,fiduciaryrepresentativeor group of individuals or entities of any kind operating such abusiness.

Littertaxiscomputedandfiledonacalendaryearbasisforall filers, regardlessof the taxableyearused for incometaxpurposes.Thereturn,Form 200,andpaymentofthetaxaredueonMay1ofeachyearfortheprecedingyear.Onceaninitialreturnisfiled,preprintedformswillbemailedautomaticallyforsubsequentyears.For further information on litter tax, contact the Department of Taxation at 804-367-8037.

VI. LINE BY LINE INSTRUCTIONS

FORM 770 - PAGE 1Complete the information in the sections at the top of Form 770. IfthisreturnisforaperiodotherthanJanuary1toDecember31ofthetaxableyearshownonyourreturn,indicatethefiscalbeginningandendingdatesinthespaceprovided.ThetaxableperiodofyourVirginiareturnmustbethesameasthatofyourfederalreturn.Itisimportantthatthename,addressandFederalEmployerIdentificationNumber(FEIN)areenteredcorrectly.Do NOT use the decedent’s social security number or the preparer’s FEIN as the estate’s or trust’s FEIN.

IftheestateortrusthasnotreceiveditsFEIN,write“AppliedFor”intheappropriateboxandnotifytheDepartment of Taxation inwritingatP. O. Box 1115, Richmond, VA 23218-1115 as soonastheFEINisreceived.

Locality Code. Lookupthe3-digitcodeonthebackcoveroftheinstructionsforthelocalityinwhichthefiduciaryqualified.Enterthecorrespondingnumberintheboxesthatareprovided

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ontheform.Ifthefiduciaryisnotqualified,enter300asthe“unassigned” locality.

Charitable Remainder Trust.Check thebox for “Exempt -CharitableRemainderTrust”undertheFEINsection.OnLine3, enter zero for the amount ofVirginia taxable income. Ascheduleorotherstatementoftheincome,andallcreditsandmodificationsattributabletothebeneficiaryoftheCharitableRemainderTrustmustbeprovidedtothebeneficiary.

SCHEDULE 1 - COMPUTATION OF TAXABLE INCOME AND TAX OF FIDUCIARY

Before completing Schedule 1, complete all applicableschedulesonthebackofForm770.

Line 1: Federal taxable income of the estate or trust.

Resident fiduciaries: EnterthefederaltaxableincomereportedonForm

1041.

Nonresident fiduciaries: EnterthetaxableincomefromSchedule2,Line8.

Line 2: Fiduciary’s share of Virginia modifications. Enter on Line 2(a) or Line 2(b), the netmodificationsamountfromSchedule3,Line12onthebackofthe return.

The instructions forSchedule3,Line12,explainwhethertheamountshouldbeenteredonLine2(a)orLine2(b).

SeeSchedule 3, Lines3and8, for amounts onLines2FAand2FS.

Line 3: Virginia taxable income of fiduciary.Add theamountsreportedonLines1and2(a),orsubtracttheamountonLine2(b)fromtheamountonLine1,andentertheresultonLine3.

Line 4: Virginia income tax. Compute the tax on the incomereportedonLine3,according to therateschedulebelow.

IfLine3is$3,000orless,thetaxis2%ofLine3;

IfLine3isover$3,000,butnotover$5,000,thetaxis$60plus3%oftheexcessover$3,000;

IfLine3isover$5,000,butnotover$17,000,thetaxis$120plus5%oftheexcessover$5,000;or

IfLine3isover$17,000,thetaxis$720plus5.75%oftheexcessover$17,000.

Line 5: Payments and credits. Enter the appropriate amountsonLines5(a)through5(q).EnterthetotalpaymentsandcreditsclaimedonLine5.

(a) Virginia income tax withheld. Enter the amount ofanyVirginiawithholdingonthewages,salariesorotherincomeofthedecedentthatwasreceivedbytheestate.EncloseacopyofFormsW-2,W-2G,1099-R and/or VK-1 to support the amount claimed.

(b)2015 Estimated tax payments. Enter the amount of any 2015 Virginia estimated tax paymentsmadebytheestateortrust,includinganyoverpayment credit applied from the fiduciary’s 2014 return.Donotincludepaymentsmadeonbehalfofa decedent for individual income tax purposes.

(c) Extension payments made with Form 770IP. Enter the amount of tentative tax paidwith thefiduciary’s Form 770IP.

(d) Credit for tax paid to another state. Enter the creditcomputedfromForm770,Schedule4,Line7.See“CreditforTaxPaidtoAnotherState”inSectionIV of these instructions to see if you qualify for this credit.

A complete copy of the fiduciary return of any state for which the credit is claimed must be enclosed.

(e)-(q) CompleteSchedule5onPage3ofForm770todeterminetheallocationsbetweenthefiduciaryandbeneficiaries.

(e) Neighborhood Assistance Act Tax Credit. Complete the worksheet below and enter theallowablecreditfromLine7onForm770,Line5(e).

1. Fiduciary’sshareofcreditfromSchedule5,Column3,Line(e) .............. 1. ___________

2. Carryover credit from prior year ............................. 2. ___________

3. Subtotal:AddLines1and2 3. ___________

4. TaxfromSchedule1,Line4 4. ___________

5. Credit for tax paid to another state .................................... 5. ___________

6. SubtractLine5fromLine4. 6. ___________

7. Allowable 2015 Credit. Enter thelesserofLine3orLine6hereand onSchedule1,Line5(e) ..... 7. ___________

8. Carryover to 2016 Form 770. IfLine3islargerthanLine7, enter the difference .............. 8. ___________

(f) Enterprise Zone Act Tax Credit. Enter the fiduciary’screditascomputedonForm301usingonly the fiduciary’s share of qualifying income,the Virginia unemployment tax credit and the investmenttaxcredit.EncloseForm301.

When qualifying in more than one Enterprise Zone, complete a separate Form 301 for each zone. Add the totals from each Form 301 and enter the grand total on this line.

(g) Major Business Facility Job Tax Credit. Enter the fiduciary’s credit as computed on Form 304.

(h) Historic Rehabilitation Tax Credit. Complete theworksheetbelowandentertheallowablecredit.

1. Fiduciary’s credit share from Schedule 5,Line(e)ofcolumnusedtoclaim credit. Enclose certification .. 1. ___________


3. Subtotal:AddLines1and2 . 3. ___________

4. TaxfromSchedule1,Line4 4. ___________

5. Total of other credits claimed 5. ___________


7. Allowable 2015 Credit. Enter the lesserofLine3orLine6hereand onSchedule1,Line5(h) ..... 7. ___________

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(i) Low-Income Housing Tax Credit. Complete theworksheetbelowandentertheallowablecredit.

1. Fiduciary’s credit share from Schedule 5,Line(e)ofcolumnusedtoclaim credit. Enclose certification .. 1. ___________

2. Carryover credit from prior year. .......................... 2. ___________


4. TaxfromSchedule1,Line4. 4. ___________

5. Total of other credits claimed. 5. ___________


7. Allowable 2015 Credit. Enter the lesser ofLine3orLine6hereandon Schedule1,Line5(i) ............ 7. ___________


(j) Barge and Rail Usage Tax Credit. Complete theworksheetbelowandentertheallowablecredit.

1. Fiduciary’s credit share from Schedule5,Line(e)ofcolumn used to claim credit .............. 1. ___________





6. SubtractLine5fromLine4 . 6. ___________

7. Allowable 2015 Credit. Enter thelesserofLine3orLine6 hereandonSch.1,Line5(j) 7. ___________


(k) Linereservedforfutureuse.

(l) Worker Retraining Tax Credit. Complete the worksheetbelowandentertheallowablecredit.


2. Carryover credit from prior year .......................... 2. ___________





7. Allowable 2015 Credit. Enter thelesserofLine3orLine6 hereandonSch.1,Line5(I) 7. ___________


(m) Qualified Equity and Subordinated Debt Investments Tax Credit. Completetheworksheetbelowandentertheallowablecredit.






6. SubtractLine5fromLine4 . 6. ___________

7. Allowable 2015 Credit. Enter thelesserofLine3orLine6 hereandonSch.1,Line5(m) 7. __________


(n)-(o) Coalfield Employment Enhancement Tax Credit and Virginia Coal Employment and Production Incentive Tax Credit Enter on Line5(n)i the fiduciary’s credit as computed on Form 306.EnteronLine5(n)iiithefullcreditfromForm306,Line12.EnteronLine5(o)ithefiduciary’screditascomputedonForm306,Line13.EncloseForm306.

(p)Linereservedforfutureuse.

(q) Land Preservation Tax Credit. Complete the worksheetbelowandentertheallowablecredit.

1. Fiduciary’s credit share from Schedule5,Line(e)ofcolumn used to claim credit ............. 1. ___________






7. Allowable 2015 Credit. Enter thelesserofLine3orLine6 hereandonSch.1,Line5(q) 7. ___________


Line 5: Total payments and credits. EnterthetotalofLines5(a) through 5(q).

Line 6: Balance due. IfthetotalcreditsclaimedonLine5arelessthanthetaxreportedonLine4,subtractLine 5 from Line 4 and enter the result. SeeSection II of this instructionbook for informationonwhenandwheretofileyourreturn.A check for the balance due, made payable to the Treasurer

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of the city or county where the return will be filed, must be enclosed with the return. A list of the filing addresses and phone numbers for each city or county is available at the back of these instructions.

Line 7: Overpayment. If the total payments and credits claimedonLine5exceedthetaxreportedonLine4,subtractLine4fromLine5andentertheresultonLine7.

Line 8: Amount of overpayment to be credited to 2016. Entertheamountoftheoverpaymenttobecreditedto the fiduciary’s 2016 estimated income tax.

Line 9: Amount to be refunded. SubtractLine8fromLine7 and enter the refund amount here.

Line 10: Coalfield Employment Enhancement Tax Credit Earned. EnteramountfromForm306,Line11.Thisisthecredittobereportedonyour2018return.EncloseForm306.

Line 11: Amount from Form 760C or Form 760F. Enter the addition to tax amount from Form 760C or Form 760F,ifapplicable.

FORM 760C OR FORM 760FSee the “Estimated Tax” section in Part III of these instructions todetermine ifyouoweanaddition to tax. Ifexception1or2wasmetforallquarters,itisnotnecessarytocompleteorenclose Form 760C or Form 760F. If exception 3 or 4 was used to calculate the addition to tax or to determine that you did not owe the addition to tax for any quarter, you must enclose Form 760C and the associated worksheet(s) with the return.

IfForm760CorForm760Fisenclosed,completeLine11ofSchedule1.EncloseacheckfortheTOTALamountofincometax due and the addition to tax computed on Form 760C or Form 760F.IfyourreturnshowsarefundonLine9,theadditiontotaxwillbedeductedfromyourrefund.

COMPLETING THE RETURN

SIGNATURE: Thereturnmustbesignedbythefiduciaryoran authorized officer of the organization receiving or having custody or control of the management of the estate or trust. If twoormoreindividualsactjointlyasfiduciaries,thereturnmaybesignedbyanyoneofthoseindividuals.Youhavenotfiledacompleteorlegalreturnunlessithasbeensigned.

TELEPHONE NUMBERS:Telephonenumberswhereyoucanbecontactedbetweenthehoursof8:30a.m.and5:00p.m.arerequested so that a representative of the Department can call youifthereisaquestionaboutthereturn.

WHEN AND WHERE TO FILE AND PAY THE TAX: See SectionIII,FilingInformation,onPage2oftheseinstructionsforinformationonwhenandwheretofileandpaythetax.

FORM 770 - PAGE 2

SCHEDULE 2 - COMPUTATION OF VIRGINIA TAXABLE INCOME OF A NONRESIDENT ESTATE

OR TRUSTOnLines1through3,enterthedistributableamountinColumnAandthenondistributableamountinColumnB.

Line 1: Income from sources within Virginia. Enter the

income from property or businesses located oradministered in Virginia to the extent that the item ofincomeisincludableinthecomputationoffederaltaxableincome.

Line 2: Federal deductions attributable to income from sources within Virginia. Enter the federal deductionsattributabletotheincomereportedonLine1above.

Line 3: Net Virginia source income. SubtracttheamountreportedonLine2fromtheincomereportedonLine1 and enter the result here.

Line 4: Allocation of Virginia source income. Line 4is used to report the allocation of income among the fiduciary and the beneficiaries. Incomewillbeallocatedto thefiduciaryonly if the incomeisaccumulated during the taxable year and, as inthecaseofacomplextrust,notalloftheincomeisdistributedcurrently.

Virginiasourceincomemustbeallocatedtoeachbeneficiary based on his or her proportionateshareofthefederaldistributablenet income.Forexample, if 50%of theestate’sor trust’s federaldistributablenetincomeisallocatedtoabeneficiaryfromForm1041orScheduleK-1,then50%ofthenetVirginiasourceincomeshouldbeallocatedtothatbeneficiary.

Complete the allocation schedule provided on Lines4(a) through4(c)orencloseascheduleofcomputation if more space is needed.

Line 5: Deduction for distributions to beneficiaries. EntertheamountfromLine4a,Column4orLine4a,Column2,whicheverisless.

Line 6: Fiduciary’s share of Virginia source income. SumofLine4b,Column4orLine4b,Column2,whicheverisless,plusLine4b,Column5.

Line 7: Exemption from federal Form 1041. Enter the amountofthefederalexemptionallowedonfederalForm 1041.

Line 8: Income taxable to fiduciary. SubtractLine7fromLine6.Enter theresulthereandonSchedule1,Line1ofForm770.

SCHEDULE 3 - MODIFICATIONSFixed Date Conformity Update

Virginia’s Fixed Date Conformity with the Internal Revenue Code:Virginia’sdateofconformitywiththeInternalRevenueCode(IRC)wasadvancedfromJanuary2,2013toDecember31, 2014, with limited exceptions. Virginia will continue todisallow any bonus depreciation allowed for certain assetsunderIRC§§168(k),168(l),168(m),1400Land1400N;thefive-year carrybackof federal net operating lossdeductionsgeneratedinTaxableYear2008or2009;andfederalincometaxdeductions forapplicablehighyielddiscountobligationsunderIRC§163(e)(5)(F).

Atthetimetheseinstructionswenttoprint,theonlyrequiredadjustmentsfor“fixeddateconformity”werethosementionedabove.However,iffederallegislationisenactedthatresultsinchangestotheIRCforthe2015taxableyear,taxpayerswillberequiredtomakeadjustmentstotheirVirginiareturnsthatarenotdescribedintheinstructionbooklet.Informationabout

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any such adjustments will be posted on the Department’swebsiteatwww.tax.virginia.gov.

PART I - ADDITIONS TO FEDERAL TAXABLE INCOME

Line 1: Interest on obligations of other states. Enter the amountofinterest,lessrelatedexpensestotheextentthatitwasnotdeductedindeterminingfederaltaxableincome,onobligationsofanystateotherthanVirginia,orofapoliticalsubdivisionofanysuchstateunlessitwascreatedbyacompactoragreement towhichVirginia is a party.

If the estate or trust received federally exempt dividend income from a regulated investment company (mutual fund) that invested in obligations both taxable andexemptforVirginiapurposes,theentireincomemustbereported unless a statement from the fund is enclosed that:

• detailsthedividendsearnedfromthefund;and

• summarizes theprorationsbetweenexempt andtaxabledividends(monthlybreakdownpreferred).

EXAMPLE:AtrustreceivesdividendsfromamutualfundthatinvestsinobligationsofVirginiaandNewYork.Theinterestreceivedfromalloftheobligationsis exempt from federal taxation. The fund provides thefollowingstatement:

Dividendpaymentsfor2015 $4,000

%ofincomefromNYobligations 60%

%ofincomefromVAobligations 40%

Basedon this information, the trustmayexclude40%or$1,600oftheincomefromVirginiataxableincome.Therefore,thetrustwouldmakeanadditionforonlypartofitsmutualfundincome,$2,400,andenclosetheabovestatementtosupportthepartialaddition.

Line 2: Income taxes of this state or any other taxing jurisdiction. Enter the amount of income tax imposedbythisstateoranyothertaxingjurisdictionto the extent that such taxeswere deducted incomputingfederaltaxableincome.

Line 3: Fixed Date Conformity Additions.

a: Bonus Depreciation.Foranexplanation,pleaseseethesectionentitled,Fixed Date Conformity Update. Entertheamountthatshouldbeaddedtofederaltaxableincomebasedupontherecomputationofallowabledepreciation. ............... a ___________

b: Other Fixed Date Conformity Additions from Supplemental Instructions.Adjustmentsresultingfrom net operating loss deduction carrybacksand applicable high yield discount obligationsnot included in federal adjusted gross income. If federal tax legislation passed after the printing deadlinefortheseinstructions,pleaserefertotheSupplemental Fixed Date Conformity Instructions to determine if you are required to make any additional additions due to federal tax legislation. The Supplemental Fixed Date Conformity Instructions are available on the Department’s website: www.tax.virginia.gov. If you are required to make

anysupplementalfixeddateconformityadditions,please enter the total amount of such additions onthisline.AnyamountofdomesticproductionadjustmentduetofixeddateconformityshouldbeenteredonLine4d.. .................. b ___________

Enter the total of Lines a and b here and on Form 770, Schedule 1, Line 2FA and Schedule 3, Line 3. ..............................TOTAL ___________

Line 4: Other additions to federal taxable income. Enter thefollowingamounts,ifapplicable,andencloseascheduleofcomputationwiththereturn:

a. The amount of a lump sumdistribution froma qualified retirement plan, less theminimumdistributionallowance,andanyamountexcludedfrom federal taxable incomesolelybyvirtueofafiduciary’s election to use the averaging provisions under IRC § 402.

b. TheamountnecessarytopreventthedeductionofanyitemproperlydeductiblebythetaxpayerindeterminingataxunderVirginialawpriorto1972.

c. The amount that would be reported underthe installment method from certain dispositions of property. If, in a prior year, the taxpayerwasallowed a subtraction for certain income fromdealer dispositions of property made on or after January1,2009,intheyearsfollowingtheyearofdisposition, the taxpayer is required toaddbacktheamountthatwouldhavebeenreportedundertheinstallmentmethod.Eachdispositionmustbetracked separately for purposes of this adjustment.

d. Other incomenot included in federal taxableincome,butsubjecttoVirginiaincometax.

Line 5: Total Additions. AddLines1through4andenterthe result.

PART II - SUBTRACTIONS FROM FEDERAL TAXABLE INCOME

Line 6: Income (interest, dividends or gains) from obligations or securities of the U.S. exempt from state income taxes, but not exempt from federal income taxes. Enter the income derived from obligationsorthesaleorexchangeofobligationsoftheUnitedStatesandonobligationsorsecuritiesofanyauthority,commissionorinstrumentalityoftheUnitedStates to theextent thatsuch incomeis exempt from state income taxes. The amount enteredhereshouldinclude,butisnotlimitedto,qualifyingstocks,bonds,treasurybillsandtreasurynotes.

Do not include interest on federal tax refunds,equipment purchase contracts and other normal businesstransactions.

Only income received fromdirect obligations oftheUnitedStatesiseligibleforthesubtraction.Apartial list of federal organizations and the Virginia tax status of income received from investments in securitiesissuedbythoseentitiesisshownbelow.ThelistisbasedontheDepartment’sanalysisoffederal and state law as applicable to selectedorganizations.Fororganizationsnot listedbelow,

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additional informationmustbeenclosedshowingthat the interest is exempt from Virginia income tax.

ISSUING ORGANIZATION TAX STATUS

Export-ImportBankoftheUnited States .......................................................Exempt

FederalHomeLoanBank(FHLB) ............Exempt FederalHomeLoanMortgage

Corporation(FHLMC) ............................. Taxable Federal Intermediate Credit Bank ............Exempt FederalLandBank ...................................Exempt FederalNationalMortgageAssociation

(FNMA) .................................................... Taxable GovernmentNationalMortgage

Association(GNMA) ................................ Taxable Inter-AmericanDevelopmentBank ......... Taxable International Bank for Reconstruction

& Development ....................................... Taxable StudentLoanMarketAssociation

(SLMA) .....................................................Exempt UnitedStatesSavingsBonds ...................Exempt UnitedStatesTreasuryBills,Notes,

and Bonds ................................................Exempt

If the estate or trust received income from a regulated investment company (mutual fund) that invested in obligations both taxable andexemptforVirginiapurposes, theentire incomemustbereportedas taxableunlessa statement from thefund is enclosed that:

• detailstheamountofincomeearnedfromthefund; and

• summarizestheprorationsbetweenexemptandtaxableincome(monthlybreakdownpreferred).

If the estate or trust is provided the information specifiedabove,entertheexemptportionofincome.A copy of the statement from the fundmust beenclosedwiththereturntosupportthesubtraction.

Line 7: Any state income tax refund or credit reported as “other income” on federal Form 1041. Enter any state income tax refund or credit included in the estate’s or trust’s income on Form 1041.

Line 8: Fixed Date Conformity Subtractions.

a: Bonus Depreciation. For an explanation,see the section entitled,Fixed Date Conformity Update . En te r the amount tha t shou ld be subtracted from federal taxable incomebased upon the recomputation of allowable depreciation. ........................... a ___________

b: Other Fixed Date Conformity Subtractions from the Supplemental Instructions.Adjustmentsresulting from net operating loss deduction carrybacks and applicable high yield discountobligations included in federal adjusted grossincome. If federal tax legislation is passed after the printing deadline for these instructions,please refer to the Supplemental Fixed Date Conformity Instructions to determine if you are requiredtomakeanyadditionalsubtractionsdue

to federal tax legislation. The Supplemental Fixed DateConformityInstructionsareavailableontheDepartment’s website:www.tax.virginia.gov. Enter the total Supplemental Fixed Date Conformity subtractionshere. ....................... b ___________

Enter the total of Lines a and b here and on Form 770 Schedule 1, Line 2FS and Schedule 3, Line 8. TOTAL .................. ___________

Line 9: Other subtractions from federal taxable income. Enter the following amounts, if applicable, andencloseascheduleofcomputationwiththereturn.

a. Theamountofincomeonobligationsorsalesandexchangesofobligationsofthisstateorofanypoliticalsubdivisionorinstrumentalityofthisstateincludedinfederaltaxableincome.

b. Theamountofwagesorsalarieseligibleforthefederalworkopportunitytaxcreditwhichwasnotdeducted for federal purposes on account of the provisions of IRC § 280C(a).

c. TheamountofTier1RailroadRetirementActbenefits, Tier 2 vested dual benefits and otherRailroadRetirementAct benefits, andRailroadUnemploymentInsuranceActbenefitsincludedinfederaltaxableincome.

d. Transitional modifications provided in Va. Code §58.1-315.

e. Adeduction,nottoexceed$4,000peraccountperyear, for theamountpaidorcontributed toaprepaid tuition contract or a college savings trust account entered into with the Virginia CollegeSavingsPlan.Donotincludeanyamountthatwasdeducted on the federal return.

f. AllowstheincomefromdealerdispositionsofpropertymadeonorafterJanuary1,2009,toberecognized under the installment method at the electionofthetaxpayer,providedthat(i)theelectionrelating to the dealer disposition of the property has beenmadeonorbeforetheduedateprescribedbylawforfilingthetaxpayer’sincometaxreturn,and (ii) the dealer disposition is in accordance withrestrictionsandconditionsestablishedbytheDepartment.

g. To the extent included in federal taxableincome,anyamountofgainorincomerecognizedby a taxpayer in connection with the HistoricRehabilitationTaxCreditisallowedasasubtractionon the Virginia return.

h. Otherincomeincludedinfederaltaxableincome,butexemptfromVirginiaincometax.

Line 10: Total subtractions. AddLines 6 through9 andenter the total here.

Line 11: Net Virginia modifications. SubtractLine10fromLine5andenterthedifference.

Line 12: Net Virginia modifications allocated to the fiduciary. Multiply Line 11 by the fiduciary’spercentage of federal distributable net income.Enter the result here and:

Page13

If Line 5 is larger than Line 10,

Enter the amount from Line 12 above on Line 2(a) of Schedule 1. This is a net ADDITION.

If Line 5 is not larger than Line 10,

Enter the amount from Line 12 above on Line 2(b) of Schedule 1. This is a net SUBTRACTION.

Net Virginia Modifications Allocated to the Beneficiaries

Each beneficiary must be provided a statement of income and modifications for use in completing the individual income tax return. See“AllocationofIncometoBeneficiaries” in Section II of these instructions for more information.

SCHEDULE 4 - COMPUTATION OF THE CREDIT FOR TAX PAID TO ANOTHER STATE

Ifacredit isbeingclaimedfor taxespaidby the fiduciary toanotherstate,completeLines1through7ofSchedule4onForm 770 to compute the allowable credit. See “CREDITFORTAXPAIDTOANOTHERSTATE”inSectionIVoftheseinstructions formore information.A complete copy of thereturnfiledwithanystateforwhichacredit isclaimedmustbeenclosed.Ifacreditisbeingclaimedfortaxespaidtomorethan1otherstate,aseparatecomputationmustbeenclosedforeachstate(followingtheformatofForm770,Schedule4).

Line 1: Taxable income reported on another state’s return. Enterthetaxableincomeonwhichthetaxintheotherstateisbased.Encloseacopyofthereturn filed in the other state to support the amount claimed.

Line 2: Virginia taxable income. EnterthetaxableincomefromSchedule1,Line3ofForm770.

Line 3: Total income tax paid to another state. Enter the income tax paid to another state.Alsoenter thename of the other state.

Line 4: Virginia income tax. Enter the tax from Schedule 1,Line4ofForm770.

Line 5: Allowable percentage for credit. Resident Estate or Trust:DivideLine1byLine2,

and enter the result to 1 decimal place (example: 10.5%).Donotentermorethan100%.

Nonresident Estate or Trust:DivideLine2byLine1,andentertheresultto1decimalplace(example:10.5%).Donotentermorethan100%.

Line 6: Resident Estate or Trust: Multiply Line 5byLine4.

Nonresident Estate or Trust:MultiplyLine5byLine3.

Line 7: Allowable credit.

Resident Estate or Trust: Enter the smaller amountfromLine3orLine6.

Nonresident Estate or Trust: Enter the smaller amountfromLine4orLine6.AlsoenterthisamountonLine5(d)ofSchedule1.

SCHEDULE 5 - COMPUTATION OF CREDIT TO TAX AND QUALIFYING INCOMESchedule 5 is used to allocate the approved tax credits among thebeneficiariesandthefiduciary.Lines(a)through(d)should

beusedforthebeneficiaries,andLine(e)shouldbeusedforthefiduciary.Ifyouneedadditionallines,youmayencloseasupplementaryschedulewith thereturn following the formatshownonForm770.Thecreditsand thequalifying incomemust be allocated according to each person’s share of thefederaldistributablenet income,usingthepercentagesfromForm 1041 or Schedule K-1.

Columns 1 and 2: Name and social security number and percentage. Enter the name and social security number of each beneficiary and the appropriatedistributionpercentage.

Column 3: Allocation of Neighborhood Assistance Act Tax Credit. Enter the total authorizedNeighborhoodAssistanceAct Tax Credit on Line (f) in theappropriate column.

MultiplytheamountonLine(f)bythepercentagesinColumn2foreachbeneficiary[lines(a)through(d)]andthefiduciary[Line(e)],andentertheresultsontheappropriateLinesinColumn3usedtoclaimthe credit.

Enter the fiduciary’s share of theNeighborhoodAssistanceActTaxCredit[Column3,Line(e)]onLine5(e)onSchedule1.

A copy of theNeighborhoodAssistanceActTaxCreditCertificate(s)mustbeenclosed tosupportthe credit claimed.

Columns 4 - 7: Allocation of the Enterprise Zone Tax Credits. Form301anda copy of the certificateof qualification from the Virginia Department of Housing andCommunityDevelopmentmust beenclosedtosupportanyEnterpriseZoneTaxCreditclaimed.Computethefiduciary’sEnterpriseZoneCreditonForm301andentertheresultonForm770,Schedule1,Line5(f).

Column 4: Allocation of Enterprise Zone Qualifying Income. EnterthetotalEnterpriseZonequalifyingincomeonLine(f).Thisistheamountofincomederivedfromaqualifiedbusinessoperatingwithinanenterprisezone.

MultiplytheamountonLine(f)bythepercentagesshowninColumn2foreachbeneficiary[lines(a)through(d)]andthefiduciary[Line(e)].EntertheresultsontheappropriateLinesinColumn4.

Theamountofqualifyingincomeattributabletothefiduciary is used to compute the fiduciary’s general taxcreditportionoftheEnterpriseZoneTaxCreditonForm301.

Column 5: A l locat ion o f Enterpr ise Zone Sta te Unemployment Tax Credit. Compute the total UnemploymentTaxCreditusingtheinstructionsonForm301andentertheresultonLine(f).

MultiplytheamountonLine(f)bythepercentagesshowninColumn2foreachbeneficiary[Lines(a)through(d)]andthefiduciary[Line(e)].Entertheresults on the appropriate lines in Column 5.

ThebeneficiarywillusethiscreditwhencomputingtheStateUnemploymentTaxCreditportionoftheEnterpriseZoneActCreditonForm301.

EncloseacopyoftheCertificateofUnemploymentTax Credit from the Virginia Employment Commission

Page 14

to support any credit claimed.

Column 6: Space reserved for future use.

Column 7: Allocation of Enterprise Zone Investment Tax Credit. Compute the total Enterprise ZoneInvestment Tax Credit using the instructions on Form301andentertheresultonLine(f).MultiplytheamountonLine(f)bythepercentagesshowninColumn2foreachbeneficiary[Lines(a)through(d)]andthefiduciary[Line(e)].Entertheresultsonthe appropriate lines in Column 7.

Thebeneficiarieswillusethiscreditwhencomputingthe Investment Tax Credit portion of the Enterprise ZoneActCreditonForm301.

Columns 8 - 11: Other credits. Enter the name of the credit beingclaimedontheappropriatelineofColumn8.Ifmorethanonecreditisbeingclaimed,entertheadditionalcreditinformationonColumns9-11,asnecessary.

Allocation of Major Business Facility Job Tax Credit. Enter the amount of Major Business Facility Job Tax Credit authorized by the Departmenton Line (f).Multiply the amount on Line (f) bythe percentages shown in Column 2 for eachbeneficiary[lines(a)though(d)]andthefiduciary[Line(e)].EntertheresultsontheappropriateLines.Enter the fiduciary’s share of the Major Business Facility JobTaxCredit [Line (e)] on Line5(g) ofSchedule 1.

Allocation of Historic Rehabilitation Tax Credit. Enter the totalHistoricRehabilitationTaxCreditallowedonLine(f).MultiplytheamountonLine(f)bythepercentagesinColumn2foreachbeneficiary[Lines(a)through(d)]andthefiduciary[Line(e)].Enter the results on the appropriate lines. Enter the fiduciary’sshareofHistoricRehabilitationTaxCredit[Line(e)]onLine5(h)ofSchedule1.AcopyofthecreditcertificateissuedbytheVirginiaDepartmentofHistoricResourcesmustbeenclosedwith thereturn in order to claim this credit.

Allocation of Low-Income Housing Tax Credit. Enter the total Low-IncomeHousingTaxCreditallowedonLine(f).MultiplytheamountonLine(f)by thepercentagesshown inColumn2 foreachbeneficiary[Lines(a)through(d)]andthefiduciary[Line(e)].Entertheresultsintheappropriatelines.Enterthefiduciary’sshare[Line(e)]onLine5(i)ofSchedule 1. Enclose a certificate of qualification authorizing this credit.

Allocation of Barge and Rail Usage Tax Credit. EnterthetotalBargeandRailTaxCreditallowedon Line (f).Multiply the amount on Line (f) bythe percentages shown in Column 2 for eachbeneficiary[Lines(a)through(d)]andthefiduciary[Line(e)].Entertheresultsintheappropriatelines.Enterthefiduciary’sshare[Line(e)]onLine5(j)ofSchedule 1.

Allocation of Worker Retraining Tax Credit. Enter the total Worker Retraining Tax Credit

allowedonLine(f).MultiplytheamountonLine(f)by thepercentagesshown inColumn2 foreachbeneficiary[Lines(a)through(d)]andthefiduciary[Line(e)].Entertheresultsintheappropriatelines.Enterthefiduciary’sshare[Line(e)]onLine5(l)ofSchedule 1.

Allocation of Qualified Equity and Subordinated Debt Investments Tax Credit. Enter the total QualifiedEquityandSubordinatedDebtInvestmentsTaxCreditallowedonLine(f).MultiplytheamountonLine (f)by thepercentagesshown inColumn2foreachbeneficiary[Lines(a)through(d)]andthe fiduciary [Line (e)]. Enter the results in theappropriatelines.Enterthefiduciary’sshare[Line(e)]onLine5(m)ofSchedule1.

Allocation of Coalfield Employment Enhancement Tax Credit and Virginia Coal Employment and Production Incentive Tax Credit - Full Tax Credit. Enter the total Coalfield Employment Enhancement Tax Credit and Virginia Coal Employment and Production Incentive Tax Credit - Full Tax Credit allowedonLine(f).MultiplytheamountonLine(f)by thepercentages shown inColumn2 for eachbeneficiary[Lines(a)through(d)]andthefiduciary[Line(e)].Entertheresultsintheappropriatelines.Enterthefiduciary’sshare[Line(e)]onLine5(n)ofSchedule 1.

Allocation of Coalfield Employment Enhancement Tax Credit and Virginia Coal Employment and Production Incentive Tax Credit - Excess Tax Credit. Enter the total Coalfield Employment Enhancement Tax Credit and Virginia Coal Employment and Production Incentive Tax Credit - ExcessTaxCreditallowedonLine(f).MultiplytheamountonLine (f)by thepercentagesshown inColumn2 foreachbeneficiary [Lines(a) through(d)]and the fiduciary [Line (e)].Enter the resultsin the appropriate lines. Enter the fiduciary’s share [Line(e)]onLine5(o)ofSchedule1.

Allocation of Land Preservation Tax Credit. Enter the total Land Preservation Tax CreditallowedonLine(f).MultiplytheamountonLine(f)by thepercentagesshown inColumn2 foreachbeneficiary[Lines(a)through(d)]andthefiduciary[Line(e)].Entertheresultsontheappropriatelines.Enterthefiduciary’sshare[Line(e)]onLine5(q)ofSchedule 1.

Allocation of Coalfield Employment Enhancement Tax Credit and Virginia Coal Employment and Production Incentive Tax Credit Earned. Compute the total Coalfield Employment Enhancement Tax Credit and Virginia Coal Employment and Production IncentiveTaxCredit onForm306 and enter theearnedamountonLine(f).MultiplytheamountonLine(f)bythepercentagesshowninColumn2foreachbeneficiaryandthefiduciary.Entertheresultson the appropriate lines. Enter the fiduciary’s share onLine10ofSchedule1.

Page 15

001AccomackCounty .. 757-787-5747 ... P.O.Box186 ...........Accomac23301-0186003AlbemarleCounty ..434-296-5851 ... P.O.Box1498 ........Richmond23218-1498510AlexandriaCity* .....703-746-3909 ... P.O.Box1498 ........Richmond23218-1498005AlleghanyCounty...540-863-6640 ... 9212WinterberryAve.,SuiteE, Covington ....................................... 24426007AmeliaCounty ...... 804-561-2158 ... P.O.Box269 ........................Amelia23002009AmherstCounty ....434-946-9310 ... P.O.Box719 ......................Amherst24521011AppomattoxCounty 434-352-7450 ... P.O.Box125 ................Appomattox24522013ArlingtonCounty ....703-228-3055 ... P.O.Box1498 ........Richmond23218-1498015AugustaCounty .... 540-245-5640 ... P.O.Box959 ........................Verona 24482017 Bath County ...........540-839-7231 ... P.O.Box130 .............Warm Springs 24484019 Bedford County ..... 540-586-7621 ... 122E.MainSt.Suite103 ...Bedford24523021 Bland County ........ 276-688-4291 ... P.O.Box130 ..........................Bland24315023BotetourtCounty...540-473-8270 ... P.O.Box128 ............Fincastle 24090-0128520 Bristol City .............276-645-7316 ... 497CumberlandSt.,Ste.1-A Bristol .............................................. 24201025BrunswickCounty .434-848-2313 ... P.O.Box669 ............. Lawrenceville23868027 Buchanan County ..276-935-6542 ... P.O.Box1042 ..................... Grundy24614029BuckinghamCounty434-969-4972 . P.O.Box138 ............... Buckingham23921530BuenaVistaCity ... 540-261-8610 ... 2039SycamoreAve. ....Buena Vista 24416031CampbellCounty ...434-332-9518 ... P.O.Box66 .......................Rustburg24588033CarolineCounty .....804-633-4050 ... P.O.Box819 ............BowlingGreen22427035CarrollCounty.......276-730-3080 ... P.O.Box1498 ........Richmond23218-1498036CharlesCityCounty804-652-2161 . P.O.Box1498 ........Richmond23218-1498037CharlotteCounty...434-542-5546 ... P.O.Box308 ............ CharlotteC.H.23923540 Charlottesville City .434-970-3160 ... P.O.Box2964 .......Charlottesville,VA22902550 Chesapeake City ...757-382-6732 ... P.O.Box15285 ...........Chesapeake23328041 Chesterfield County 804-748-1281.. P.O.Box124 ................Chesterfield23832043ClarkeCounty ........ 540-955-5108 ... P.O.Box67 .......................Berryville 22611570ColonialHeightsCity804-520-9280 P.O.Box3401 ......ColonialHeights23834580 Covington City ......540-965-6350 ... P.O.Drawer58 ...............Covington 24426045 Craig County ......... 540-864-6241 ... P.O.Box186 .................NewCastle24127047 Culpeper County....540-727-3443 ... P.O.Box1807 ...................Culpeper 22701049CumberlandCounty804-492-4280 . P.O.Box77 ..................Cumberland23040590 Danville City...........434-799-5145 ... P.O.Box480 ...................... Danville24543051 Dickenson County 276-926-1646 ... P.O.Box1067 ................. Clintwood24228053DinwiddieCounty.. 804-469-4500 ... P.O.Box104 ....................Dinwiddie23841595 Emporia City .........434-634-5405 ... P.O.Box956......................Emporia23847057 Essex County .......804-443-4737 ... P.O.Box879 ............Tappahannock 22560600 Fairfax City ...........703-385-7880 ... Rm.224,CityHall,10455ArmstrongSt., Fairfax ............................................. 22030059FairfaxCounty** ...703-222-8234 ... P.O.Box1498 ........Richmond23218-1498610 Falls Church City ...703-248-5065 ... 300ParkAve.,#104-E, Falls Church ...........................22046-3301061 Fauquier County ....540-422-8163 ... P.O.Box149 ......... Warrenton 20188-0149063FloydCounty ........540-745-9345 .. P.O.Box1498 ........Richmond23218-1498065 Fluvanna County ...434-591-1940 ... P.O.Box1498 ........Richmond23218-1498620 Franklin City........... 757-562-1157 ... P.O.Box389 .............Franklin23851-0389067 Franklin County .....540-483-3083 ... 1255FranklinSt.,Suite102, Rocky Mount ................................... 24151069 Frederick County .. 540-665-5681 ... P.O.Box1498 ........Richmond23218-1498630FredericksburgCity540-372-1004 . P.O.Box644 ...........Fredericksburg22404640GalaxCity*.............276-236-2528 ... P.O.Box1498 ........Richmond23218-1498071GilesCounty .........540-921-3321 ... 130N.MainSt. ..............Pearisburg24134073GloucesterCounty .804-693-3451 ... 6489MainSt.,Ste.137 .Gloucester23061075GoochlandCounty 804-556-5807 ... P.O.Box60 ....................Goochland23063077GraysonCounty....276-773-2381 ... P.O.Box126 ............ Independence24348079GreeneCounty ......434-985-5211 ... P.O.Box1498 ........Richmond23218-1498081GreensvilleCounty 434-348-4227 ... 1781GreensvilleCountyCir.,Room132, Emporia .......................................... 23847083HalifaxCounty ......434-476-3314 ... P.O.Box1847 ......................Halifax24558650HamptonCity ........ 757-727-6690 ... P.O.Box636 ........... Hampton23669-0636085HanoverCounty....804-365-6129 ... P.O.Box129 ......................Hanover23069660HarrisonburgCity...540-432-7704 ... P.O.Box20031 .Harrisonburg22801-7531087HenricoCounty* ...804-501-4263 ... P.O.Box1498 ........Richmond23218-1498089HenryCounty........276-634-4690 ... P.O.Box1077 .......Collinsville 24078-1077091HighlandCounty .... 540-468-2142 ... P.O.Box148 .................... Monterey 24465670HopewellCity.........804-541-2237 ... P.O.Box1604 .................. Hopewell23860093IsleofWightCounty757-365-6222 . P.O.Box107 ...... IsleofWight23397-0107095JamesCityCounty 757-253-6695 ... P.O.Box283 ...............Williamsburg23187097KingandQueenCo.804-785-5976 P.O.Box178, King&QueenCourthouse ............... 23085099KingGeorgeCounty540-775-4664 10459CourthouseDr.,Suite101, KingGeorge ...........................22485-3865101 King William County 804-769-4941 . P.O.Box217 ............... KingWilliam23086103LancasterCounty . 804-462-7920 ... 8311MaryBallRoad,Room203, Lancaster ........................................ 22503

105LeeCounty ............276-346-7722 ... P.O.Box96 ..................... Jonesville24263678LexingtonCity .......540-462-3701 ... P.O.Box922 ....................Lexington24450107LoudounCounty ...703-777-0260 ... P.O.Box1498 ........Richmond23218-1498109LouisaCounty........540-967-3432 ... P.O.Box8 .............................Louisa23093111LunenburgCounty 434-696-2516 ... 11512CourthouseRd.,Suite,101, Lunenburg....................................... 23952680LynchburgCity ......434-455-3870 ... P.O.Box858 ......... Lynchburg24505-0858113MadisonCounty .... 540-948-4421 ... P.O.Box56 ........................Madison 22727683ManassasCity .....703-257-8222 ... P.O.Box1498 ........Richmond23218-1498685ManassasParkCity703-335-8825 . OneParkCenterCt. Manassas Park 20111690 Martinsville City .....276-403-5131 ... P.O.Box1222 ...... Martinsville 24114-1222115MathewsCounty ... 804-725-7168 ... P.O.Box1498 ........Richmond23218-1498117MecklenburgCounty,434-738-6191 P.O.Box360 ......................Boydton23917119 Middlesex County .804-758-5331 ... P.O.Box148 ...............Saluda23149-0148121MontgomeryCounty540-382-5710 . 755RoanokeSt.,Suite1-A, Christiansburg ................................. 24073125NelsonCounty .......434-263-7070 ... P.O.Box246 ..................Lovingston22949127NewKentCounty... 804-966-9610 ... P.O.Box1498 ........Richmond23218-1498700NewportNewsCity 757-926-8653 ... 2400WashingtonAve., NewportNews ................................ 23607710NorfolkCity ........... 757-664-7885 ... P.O.Box2260 .............Norfolk23501-2260131NorthamptonCounty757-678-0446 P.O.Box65 ........................Eastville23347133Northumberland .... 804-580-4600 ... P.O.Box309 ..................Heathsville22473720NortonCity.............276-679-0031 ... P.O.Box347 ........................ Norton24273135NottowayCounty ...434-645-9317 ... P.O.Box5 ........................Nottoway23955137OrangeCounty ...... 540-672-4441 ... P.O.Box389 .......................Orange22960139PageCounty ..........540-743-3840 ... 103S.CourtSt.,Ste.C ......... Luray22835141 Patrick County ......276-694-7131 ... P.O.Box1498 ........Richmond23218-1498730PetersburgCity ......804-733-2315 ... 135N.UnionSt. ....Petersburg,VA23803143PittsylvaniaCounty434-432-7940... P.O.Box272 ....................Chatham24531735PoquosonCity .......757-868-3020 ... 500CityHallAve. ...........Poquoson23662740 Portsmouth City .....757-393-8773 ... 801CrawfordSt. ..........Portsmouth23704145PowhatanCounty .. 804-598-5616 ... 3834OldBuckinghamRd.,SuiteC, Powhatan ........................................ 23139147PrinceEdwardCounty434-392-3231 ..P.O.Box446 ................Farmville23901149PrinceGeorgeCounty804-722-8740...P.O.Box155 .......PrinceGeorge23875153PrinceWilliamCounty703-792-6710 ...P.O.Box1498 ...Richmond23218-1498155 Pulaski County ...... 540-980-7750 ... 52WestMainStreet,Suite200, Pulaski ............................................ 24301750 Radford City ..........540-731-3613 ... 619SecondSt.,Rm.161...Radford 24141157RappahannockCounty540-675-5370 P.O.Box115 ........... Washington 22747760 Richmond City ....... 804-646-6474 ... P.O.Box1498 ........Richmond23218-1498159 Richmond County ..804-333-3722 ... P.O.Box366 ......................Warsaw22572770 Roanoke City ........540-853-6543 ... P.O.Box718 .....................Roanoke 24004161 Roanoke County ... 540-772-2049 ... P.O.Box21709 .................Roanoke 24018163RockbridgeCounty 540-463-3431 ... P.O.Box1160 ..................Lexington24450165RockinghamCounty540-564-3000 . 20E.GaySt. ............. Harrisonburg22802167 Russell County ..... 276-889-8018 ... P.O.Box517 ..................... Lebanon24266775 Salem City .............540-375-3019 ... P.O.Box869 ................Salem24153-0869169 Scott County .........276-386-7692 ... 190BeechStreet,Suite104, GateCity ......................................... 24251171 Shenandoah County 540-459-6170 P.O.Box1498 ........Richmond23218-1498173SmythCounty ....... 276-782-4040 ... P.O.Box985 ........................Marion24354175SouthamptonCounty757-653-3032 P.O.Box1498 ........Richmond23218-1498177 Spotsylvania County 540-507-7054 P.O.Box175 ...............Spotsylvania22553179 Stafford County ......540-658-4132 ... P.O.Box98 ............... Stafford 22555-0098790 Staunton City .........540-332-3829 ... P.O.Box4 .........................Staunton 24402800 Suffolk City ........... 757-514-4260 ... P.O.Box1459 .............Suffolk23439-1459181 Surry County ......... 757-294-5225 ... P.O.Box35 .............................Surry23883183SussexCounty ......434-246-1030 ... P.O.Box1398 ..................... Sussex23884185TazewellCounty ....276-385-1235 ... 101E.MainSt.,Ste.201 ... Tazewell24651810 Virginia Beach ......757-385-4483 ... 2401CourthouseDr.,Bldg.1,Rm.121, Virginia Beach .........................23456-9002187 Warren County ......540-635-2651 ... P.O.Box1775 ..... FrontRoyal22630-0038191 Washington County 276-676-6270 ... OneGovernmentCenterPlace,Ste.C, Abingdon ................................24210-8484820WaynesboroCity ... 540-942-6610 ... 503W.MainSt.,Rm.107, Waynesboro .................................... 22980193WestmorelandCounty804-493-9052 ...P.O.Box68 ................. Montross 22520830WilliamsburgCity ... 757-220-6150 ... P.O.Box245 ...............Williamsburg23187840 Winchester City ..... 540-667-1815 ... P.O.Box546 ................. Winchester 22604195 Wise County ..........276-328-3556 ... P.O.Box1278 .........................Wise24293197 Wythe County ........276-223-6015 ... 225S.4thSt.,Room101, Wytheville ....................................... 24382199YorkCounty ...........757-890-3381 ... P.O.Box90 ............. Yorktown23690-0090300Unassigned............ 540-459-6170 ... P.O.Box1498 ........Richmond23218-1498

2015 Income Tax Return Mailing Addresses and Locality CodesMail your income tax return to your Commissioner of the Revenueattheaddressbelowordirectly

to the Department of Taxation, P.O. Box 760, Richmond, Virginia, 23218-0760.

* Denotes Director of Finance **Denotes Director, Department of Tax AdministrationCity or County Phone No. Address ZIP Code City or County Phone No. Address ZIP Code

FORM 770 - Virginia Tax...The current interest factor may be obtained by calling the Department at 804-367-8031 or going to the Department’s website at . ALLOCATION OF INCOME TO

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