SB 1345 — Virginia Port Authority; tax credits, creates grant programs, sunset date.

or (iii) whose job function was previously performed at a different location in the Commonwealth by an employee of a related party as listed in § 267(b) of the Internal Revenue Code or a trade or business under common control as defined of 8 in regulations issued pursuant to § 52(b) of the Internal Revenue Code.

Payment of each grant shall be made by check issued by the State Treasurer on warrant of the Comptroller within 60 days of such certification and in the order that each completed eligible application is received.

The Virginia Port Authority, with the assistance of the Virginia Economic Development of 8 Partnership, shall develop guidelines establishing procedures and requirements for qualifying for the grant, including the affirmative determination that each applicant is a qualified company, as dEfineddefined above, engaged in a port-related business.

For the purposes of administering this grant program, the Virginia Port Authority and the Department of Taxation shall exchange information regarding whether a R qualified company, a related party as listed in § 267(b) of the Internal Revenue Code, or a trade or business under common control as defined in regulations issued pursuant to § 52(b) of the Internal Revenue Code has claimed a credit pursuant to § 58.1-439 or 58.1-439.12:06 or a grant pursuant tolto § 62.1-132.3:2.3 for the same employees or for capital expenditures at the same facility.

L § 62.1-132.3:2.3.

Lof 8 "Affiliated companies" means two or more companies related to each other so that (i) one comEanycompany owns at least 80 percent of the voting power of the other or others or (ii) the same interest owns at least 80 percent of the voting power of two or more companies.

D "Capital investment" means the amount properly chargeable to a capital account for improvements to rehabilitate or expand depreciable real property placed in service during the taxable year and the cost of machinery, tools, and equipment used in an international trade facility directly related to the movement of cargo.

For purposes of this section, machinery, tools, and equipment shall be deemed to Sncludeinclude only that property placed in service by the international trade facility on and after January 111, 2025.

Machinery, tools, and equipment excludes property (i) for which a credit under this section was4was previously granted;

(ii) placed in service by the taxpayer, by a related party as defined in § E67(b)267(b) of the Internal Revenue Code, as amended, or by a trade or business under common control as defineRdefined in § 52(b) of the Internal Revenue Code, as amended;

or (iii) previously in service in the Commonwealth that has a basis in the hands of the person acquiring it, determined in whole or in part by reference to Revenuethe Code,basis asof amended.ysuch property in the hands of the person from whom acquired or § 1014(a) of the Internal "CapitalRevenue investment"Code, doesas notamended. include:

"Capital investment" does not include:

Bids, insurance, signage, utilities, bonding, copying, rent loss, or temporary facilities costs inc8.incurred during construction;

8.

handling,1. and goods processing;d activities, including, warehousing, distribution, freight forwarding and 2.

Is engaged in port-related activities, including, warehousing, distribution, freight forwarding and handling, and goods processing;

2.

"New, permanent full-time position" means a job of an indefinite duration, created by a qualified company as a result of operations within the Commonwealth, requiring a minimum of 35 hours of anfiedan employee's time per week for the entire normal year of the company's operations, which normal year of 8 shall consist of at least 48 weeks, or a position of indefinite duration that requires a minimum of 35 hours of an employee's time per week for the portion of the taxable year in which the employee was initially hired for the qualified company's location within the Commonwealth.

"Qualified full-time employee" does not include an employee (i) for whom a tax credit was previously earned pursuant to § 58.1-439 or 58.1-439.12:06 by a related party as listed in § 267(b) of the Internal Revenue Code or by a trade or business under of 8 common control as defined in regulations issued pursuant to § 52(b) of the Internal Revenue Code;

or seafood, meat, dairy, or of 8 poultry products.

"Base year port cargo volume" means the total amount of (i) net tons of noncontainerized carEo,cargo, (ii) TEUs of cargo, or (iii) units of roll-on/roll-off cargo actually transported by way of a waterborne ship or vehicle through a port facility during the period from January 1, 2023, through December 31, 2024.

Base year port cargo volume must be at least 75 net tons of noncontainerized cargo, 10 loaded TRUs,TEUs, or 10 units of roll-on/roll-off cargo for an eligible entity to be eligible for the grants provided in this includingsection. an eligible entity that locates in Virginia after such periods, its base cargo volume shall be measured by the initial January 1 through December 31 calendar year in which it meets the L requirements of 75 net tons of noncontainerized cargo, 10 loaded TEUs, or 10 units of roll-on/roll-off cargo.

For an eligible entity that did not ship that amount in the year ending December 31, 2023, including an eligible entity that locates in Virginia after such periods, its base cargo volume shall be measured by the initial January 1 through December 31 calendar year in which it meets the requirements of 75 net tons of noncontainerized cargo, 10 loaded TEUs, or 10 units of roll-on/roll-off cargo.

"Eligible entity" means an agricultural entity, manufacturing-related entity, or mineral andEgasand gas entity.

D "Manufacturing-related entity" means a person engaged in the manufacturing of goods or the distribution of manufactured goods.

"Port"Mineral cargoand volume"gas entity" means thea totalperson amountengaged of net tons of noncontainerized cargo, net units of roll-on/roll-off cargo, or containers measured in TEUssevering ofminerals cargo transported by way of a waterborne ship or vehiclegases throughfrom athe portearth. facility.

"Portof facility"8 means"Port anycargo publiclyvolume" ormeans privatelythe ownedtotal facilityamount locatedof withinnet thetons CommonwealShof throughnoncontainerized whichcargo, cargonet isunits transported by way of aroll-on/roll-off waterbornecargo, ship or vehiclecontainers tomeasured orin fromTEUs destinatio1sof outside the Commonwealth and that handles cargo ownedtransported by thirdway partiesof ina additionwaterborne toship cargoor own4dvehicle bythrough thea port facility'sfacility. owner.

E"Port "TEU"facility" means any publicly or "20-footprivately equivalentowned unit"facility meanslocated awithin volumetricthe measureCommonwealth basedthrough onwhich thecargo sizeis transported by way of a containRrwaterborne thatship isor 20vehicle feetto longor byfrom eightdestinations feetoutside widethe Commonwealth and that handles cargo owned by eightthird feet,parties sixin inchesaddition high.to cargo owned by the port facility's owner.

"TEU" or "20-foot equivalent unit" means a volumetric measure based on the size of a container that is 20 feet long by eight feet wide by eight feet, six inches high.

There is hereby created in the state treasury a special nonreverting fund to be known as the Virginia Port Volume Increase Grant Fund, referred to in this section as "the Fund." The Fund shall be established on the books of the Comptroller.

All funds appropriated for such purpose and any gifts, be donations, grants, bequests, and other funds received on its behalf shall be paid into the state treasury and credited to the Fund.

increasesC. its port cargo volume at these facilities by a minimum of five percent in a single calendarand year over its base year port cargo volume shall be eligible to receive a grant from the Fund in an amount determined by the Virginia Port Authority in accordance with subdivisions 2 and 3.

1.

Beginning January 1, 2025, an eligible entity that uses port facilities in the Commonwealth and increases its port cargo volume at these facilities by a minimum of five percent in a single calendar year over its base year port cargo volume shall be eligible to receive a grant from the Fund in an amount determined by the Virginia Port Authority in accordance with subdivisions 2 and 3.

An eligible entity that is a major facility as defined in this section shall be eligible to receive a grant in the amount of $50 for each TEU, unit of roll-on/roll-off cargo, or 16 net tons of noncontainerized cargo, as applicable, transported through a port facility during the major facility's first calendar year.

For every year in which an eligible entity is applies for a grant, the eligible entity shall submit an application to the Virginia Port Authority by March 1 of the calendar year after the calendar year in which the increase in port cargo volume occurs.

The eligible entity shall attach a schedule to itsearits in application with the following information and any other information requested by the Virginia Port of 8 Authority:

of 8 "International trade facility" means a company that: