Virginia Tax Commissioner Upholds Denial of Machinery Purchase Tax Credit

The Virginia Tax Commissioner determined in a letter ruling that the taxpayer may claim a credit for a taxable year only for machinery and equipment purchases made during that year. The taxpayer sought a 2023 credit for purchased equipment. The Department denied the credit because the taxpayer had not paid for the equipment in 2023, and the taxpayer appealed. The Commissioner determined that taxpayers may claim the credit for a taxable year only for machinery and equipment purchases made during that year, and the guidelines clearly state that “[I]f such machinery or equipment does not qualify for the credit in ...