With the passing of Virginia House Bill 2387, Virginia individual filers are now able to claim up to a $300 annual tax credit ($600 if married-filing-jointly and each spouse submits an individual application) on eligible transactions of one or more firearm safety devices between January 1, 2024, and January 1, 2028.
Key Terms Defined
The House defines an “eligible transaction” as a purchase of one or more firearm safety devices from a federally licensed dealer.
A “firearm safety device” is any secure container made to store a firearm safely. It must have a way to limit access, like a lock-and-key or combination lock. This includes things like safes, gun safes, gun cases, lock boxes, or trigger locks.
Applying for the Credit
Applications can be filed annually through the 2027 tax year, as the Firearm Safety Credit sunsets on January 1, 2028. Individuals can submit the application electronically here.
If you prefer to send your application by mail, you may do so by sending your completed Form FSD to the following address:
Virginia Department of Taxation, P.O. Box 1217, Richmond, VA 23218-1217.
A printable copy of the PDF version is available at the attached link. Please note that if the application is sent to the Department by U.S. mail, the received date will be considered the date the mail is delivered to the Department.
Claiming the Credit
Once you have received confirmation that your Firearm Safety Credit has been approved from the Virginia Department of Taxation, you are eligible to claim the credit on the corresponding year’s Virginia individual income tax return.
This credit may be claimed on individual tax returns beginning in the tax year 2024. Each application requires the submission of corresponding receipts of purchase, so be sure to hold on to any digital or physical receipts from the purchase of firearm safety devices dated no earlier than January 1, 2024. For example, if you wish to apply for the credit on your 2024 individual tax return, you must have made the purchase between January 1, 2024 and December 31, 2024. Please note that eligible applications cannot have both firearm safety devices and firearms on the same receipt. Each individual taxpayer is allowed only one credit per taxable year.
The Virginia Department of Taxation will grant applications on a first-come, first-served basis with a maximum total aggregate tax credit of $5 million per year. This non-refundable credit may not exceed your total tax liability; however, in the case that it does, the remaining credit may be rolled forward up to five tax years or until the full amount of the credit has been claimed, whichever is sooner.
Key Considerations
Please note that this bill does not restrict nor prohibit the purchase of firearms or other safety devices. It is simply an incentive for practicing firearm safety in the Commonwealth of Virginia.
Please feel free to reach out to any of our tax professionals regarding any questions on claiming the Firearm Safety Credit at (703) 385 – 8888 and follow our newsletter for the latest tax updates.
References
https://law.lis.virginia.gov/vacodeupdates/title58.1/section58.1-339.14/
https://www.tax.virginia.gov/other-credits#firearm-safety-device
https://www.tax.virginia.gov/news/firearm-safety-device-credit
Niko Louvros
Niko Louvros joined Thompson Greenspon as a staff tax accountant in August of 2021 and is currently a tax senior with the firm. He is responsible for providing clients with tax preparation and planning throughout the year at both the business and individual level to help them prepare for the future.