{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/58.1-421.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/58.1-421.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/58.1-421.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/58.1-421.html"}],"law_id":372323,"edition_id":2,"section_id":372323,"structure_id":52969,"section_number":"58.1-421","catch_line":"Alternative method of allocation","history":"Code 1950, \u00a7 58-151.051; 1971, Ex. Sess., c. 171; 1984, c. 675.","full_text":"If any corporation believes that the method of allocation or apportionment hereinbefore prescribed as administered by the Department has operated or will so operate as to subject it to taxation on a greater portion of its Virginia taxable income than is reasonably attributable to business or sources within this Commonwealth, it shall be entitled to file with the Department a statement of its objections and of such alternative method of allocation or apportionment as it believes to be proper under the circumstances with such detail and proof and within such time as the Department may reasonably prescribe. If the Department concludes that the method of allocation or apportionment theretofore employed is in fact inapplicable or inequitable, it shall redetermine the taxable income by such other method of allocation or apportionment as seems best calculated to assign to the Commonwealth for taxation the portion of the income reasonably attributable to business and sources within the Commonwealth, not exceeding, however, the amount which would be arrived at by application of the statutory rules for allocation or apportionment.\n\n","order_by":null,"text":{"0":{"id":1388307,"text":"If any corporation believes that the method of allocation or apportionment hereinbefore prescribed as administered by the Department has operated or will so operate as to subject it to taxation on a greater portion of its Virginia taxable income than is reasonably attributable to business or sources within this Commonwealth, it shall be entitled to file with the Department a statement of its objections and of such alternative method of allocation or apportionment as it believes to be proper under the circumstances with such detail and proof and within such time as the Department may reasonably prescribe. If the Department concludes that the method of allocation or apportionment theretofore employed is in fact inapplicable or inequitable, it shall redetermine the taxable income by such other method of allocation or apportionment as seems best calculated to assign to the Commonwealth for taxation the portion of the income reasonably attributable to business and sources within the Commonwealth, not exceeding, however, the amount which would be arrived at by application of the statutory rules for allocation or apportionment.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":52969,"edition_id":2,"name":"Taxation of Corporations","identifier":"10","label":"article","depth":4,"order_by":9,"parent_id":52888,"metadata":{"child_laws":34,"child_structures":0},"date_created":"2026-08-02 03:08:54","date_modified":"2026-08-02 12:35:52","permalink":{"id":1480361,"object_type":"structure","relational_id":52969,"identifier":"10","token":"58.1\/I\/3\/10","url":"\/58.1\/I\/3\/10\/","edition_id":2,"permalink":0,"preferred":1}},{"id":52888,"edition_id":2,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":3,"parent_id":52818,"metadata":{"child_laws":307,"child_structures":23},"date_created":"2026-08-02 03:07:22","date_modified":"2026-08-02 12:35:49","permalink":{"id":1480269,"object_type":"structure","relational_id":52888,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":2,"permalink":0,"preferred":1}},{"id":52818,"edition_id":2,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":2,"parent_id":52815,"metadata":{"child_laws":762,"child_structures":68},"date_created":"2026-08-02 03:06:17","date_modified":"2026-08-02 12:35:49","permalink":{"id":1479077,"object_type":"structure","relational_id":52818,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":2,"permalink":0,"preferred":1}},{"id":52815,"edition_id":2,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":125,"parent_id":null,"metadata":{"child_laws":1793,"child_structures":194},"date_created":"2026-08-02 03:06:17","date_modified":"2026-08-02 12:35:49","permalink":{"id":1478961,"object_type":"structure","relational_id":52815,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":372197,"structure_id":52969,"section_number":"58.1-400","catch_line":"Imposition of tax","url":"\/58.1-400\/","token":"58.1\/I\/3\/10\/58.1-400","metadata":false},{"id":372193,"structure_id":52969,"section_number":"58.1-400.1","catch_line":"Minimum tax on telecommunications companies","url":"\/58.1-400.1\/","token":"58.1\/I\/3\/10\/58.1-400.1","metadata":false},{"id":372194,"structure_id":52969,"section_number":"58.1-400.2","catch_line":"Taxation of electric suppliers, pipeline distribution companies, gas utilities, and gas suppliers","url":"\/58.1-400.2\/","token":"58.1\/I\/3\/10\/58.1-400.2","metadata":false},{"id":372195,"structure_id":52969,"section_number":"58.1-400.3","catch_line":"Minimum tax on certain electric suppliers","url":"\/58.1-400.3\/","token":"58.1\/I\/3\/10\/58.1-400.3","metadata":false},{"id":372196,"structure_id":52969,"section_number":"58.1-400.4","catch_line":"Minimum tax on home service contract providers","url":"\/58.1-400.4\/","token":"58.1\/I\/3\/10\/58.1-400.4","metadata":false},{"id":372212,"structure_id":52969,"section_number":"58.1-401","catch_line":"Exemptions and exclusions","url":"\/58.1-401\/","token":"58.1\/I\/3\/10\/58.1-401","metadata":false},{"id":372228,"structure_id":52969,"section_number":"58.1-402","catch_line":"Virginia taxable income","url":"\/58.1-402\/","token":"58.1\/I\/3\/10\/58.1-402","metadata":false},{"id":372241,"structure_id":52969,"section_number":"58.1-403","catch_line":"Additional modifications to determine Virginia taxable income for certain corporations","url":"\/58.1-403\/","token":"58.1\/I\/3\/10\/58.1-403","metadata":false},{"id":372252,"structure_id":52969,"section_number":"58.1-404","catch_line":"Reserved","url":"\/58.1-404\/","token":"58.1\/I\/3\/10\/58.1-404","metadata":false},{"id":372263,"structure_id":52969,"section_number":"58.1-405","catch_line":"Corporations transacting or conducting entire business within this Commonwealth","url":"\/58.1-405\/","token":"58.1\/I\/3\/10\/58.1-405","metadata":false},{"id":372262,"structure_id":52969,"section_number":"58.1-405.1","catch_line":"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority","url":"\/58.1-405.1\/","token":"58.1\/I\/3\/10\/58.1-405.1","metadata":false},{"id":372264,"structure_id":52969,"section_number":"58.1-406","catch_line":"Allocation and apportionment of income","url":"\/58.1-406\/","token":"58.1\/I\/3\/10\/58.1-406","metadata":{"court_decisions":{"0":{"name":" .\u202f.\u202f. Commonwealth of Virginia, Department of Taxation v. FJ .\u202f.\u202f. ","case_number":"0701232","citation":null,"date":"2024-11-12","url":"https:\/\/www.courtlistener.com\/opinion\/10272400\/commonwealth-of-virginia-department-of-taxation-v-fj-management-inc\/","abstract":" .\u202f.\u202f. COURT OF APPEALS OF VIRGINIA .\u202f.\u202f. ","court_html":"<abbr title=\"Court of Appeals\">COA<\/abbr>"},"1":{"name":"COM., DEPT. OF TAXATION v. Delta Air Lines","case_number":"Record 980824","citation":"513 S.E.2d 130","date":"1999-02-26","url":"https:\/\/www.courtlistener.com\/opinion\/1059794\/com-dept-of-taxation-v-delta-air-lines\/","abstract":" .\u202f.\u202f. 513 S.E.2d 130 (1999) .\u202f.\u202f. ","court_html":"<abbr title=\"Supreme Court of Virginia\">SCV<\/abbr>"}}}},{"id":372265,"structure_id":52969,"section_number":"58.1-407","catch_line":"How dividends allocated","url":"\/58.1-407\/","token":"58.1\/I\/3\/10\/58.1-407","metadata":{"court_decisions":{"0":{"name":" .\u202f.\u202f. Commonwealth of Virginia, Department of Taxation v. FJ .\u202f.\u202f. ","case_number":"0701232","citation":null,"date":"2024-11-12","url":"https:\/\/www.courtlistener.com\/opinion\/10272400\/commonwealth-of-virginia-department-of-taxation-v-fj-management-inc\/","abstract":" .\u202f.\u202f. COURT OF APPEALS OF VIRGINIA .\u202f.\u202f. ","court_html":"<abbr title=\"Court of Appeals\">COA<\/abbr>"},"1":{"name":"COM., DEPT. OF TAXATION v. Delta Air Lines","case_number":"Record 980824","citation":"513 S.E.2d 130","date":"1999-02-26","url":"https:\/\/www.courtlistener.com\/opinion\/1059794\/com-dept-of-taxation-v-delta-air-lines\/","abstract":" .\u202f.\u202f. 513 S.E.2d 130 (1999) .\u202f.\u202f. ","court_html":"<abbr title=\"Supreme Court of Virginia\">SCV<\/abbr>"},"2":{"name":"Corning Glass Works, Inc. v. Virginia Department of Taxation","case_number":"Record 900872","citation":"402 S.E.2d 35","date":"1991-03-01","url":"https:\/\/www.courtlistener.com\/opinion\/1217444\/corning-glass-works-inc-v-virginia-department-of-taxation\/","abstract":" .\u202f.\u202f. 402 S.E.2d 35 (1991) .\u202f.\u202f. ","court_html":"<abbr title=\"Supreme Court of Virginia\">SCV<\/abbr>"}}}},{"id":372266,"structure_id":52969,"section_number":"58.1-408","catch_line":"What income apportioned and how","url":"\/58.1-408\/","token":"58.1\/I\/3\/10\/58.1-408","metadata":{"court_decisions":{"0":{"name":" .\u202f.\u202f. Commonwealth of Virginia, Department of Taxation v. FJ .\u202f.\u202f. ","case_number":"0701232","citation":null,"date":"2024-11-12","url":"https:\/\/www.courtlistener.com\/opinion\/10272400\/commonwealth-of-virginia-department-of-taxation-v-fj-management-inc\/","abstract":" .\u202f.\u202f. COURT OF APPEALS OF VIRGINIA .\u202f.\u202f. ","court_html":"<abbr title=\"Court of Appeals\">COA<\/abbr>"},"1":{"name":"Department of Taxation v. Westmoreland Coal Co.","case_number":"Record 841635","citation":"366 S.E.2d 78","date":"1988-03-04","url":"https:\/\/www.courtlistener.com\/opinion\/1272233\/department-of-taxation-v-westmoreland-coal-co\/","abstract":" .\u202f.\u202f. 366 S.E.2d 78 (1988) .\u202f.\u202f. ","court_html":"<abbr title=\"Supreme Court of Virginia\">SCV<\/abbr>"},"2":{"name":"Virginia Department of Taxation v. R.J. Reynolds Tobacco","case_number":"201263","citation":null,"date":"2022-02-10","url":"https:\/\/www.courtlistener.com\/opinion\/6349284\/virginia-department-of-taxation-v-rj-reynolds-tobacco\/","abstract":" .\u202f.\u202f. PRESENT: All the Justices 1 .\u202f.\u202f. ","court_html":"<abbr title=\"Supreme Court of Virginia\">SCV<\/abbr>"},"3":{"name":" .\u202f.\u202f. Commonwealth of Virginia, Department of Taxation v. 1887 .\u202f.\u202f. ","case_number":"0598222","citation":null,"date":"2023-05-23","url":"https:\/\/www.courtlistener.com\/opinion\/9401156\/commonwealth-of-virginia-department-of-taxation-v-1887-holdings-inc\/","abstract":" .\u202f.\u202f. COURT OF APPEALS OF VIRGINIA .\u202f.\u202f. ","court_html":"<abbr title=\"Court of Appeals\">COA<\/abbr>"},"4":{"name":"The Corporate Executive Board Co. v. Dept. of Taxation","case_number":"171627","citation":null,"date":"2019-02-07","url":"https:\/\/www.courtlistener.com\/opinion\/4588244\/the-corporate-executive-board-co-v-dept-of-taxation\/","abstract":" .\u202f.\u202f. PRESENT: All the Justices .\u202f.\u202f. ","court_html":"<abbr title=\"Supreme Court of Virginia\">SCV<\/abbr>"},"5":{"name":"COM., DEPT. OF TAXATION v. 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","court_html":"<abbr title=\"Supreme Court of Virginia\">SCV<\/abbr>"}}}},{"id":372267,"structure_id":52969,"section_number":"58.1-409","catch_line":"Property factor","url":"\/58.1-409\/","token":"58.1\/I\/3\/10\/58.1-409","metadata":false},{"id":372268,"structure_id":52969,"section_number":"58.1-410","catch_line":"Valuation of property owned or rented","url":"\/58.1-410\/","token":"58.1\/I\/3\/10\/58.1-410","metadata":false},{"id":372280,"structure_id":52969,"section_number":"58.1-411","catch_line":"Average value of property","url":"\/58.1-411\/","token":"58.1\/I\/3\/10\/58.1-411","metadata":false},{"id":372291,"structure_id":52969,"section_number":"58.1-412","catch_line":"Payroll factor","url":"\/58.1-412\/","token":"58.1\/I\/3\/10\/58.1-412","metadata":false},{"id":372303,"structure_id":52969,"section_number":"58.1-413","catch_line":"When compensation deemed paid or accrued in this Commonwealth","url":"\/58.1-413\/","token":"58.1\/I\/3\/10\/58.1-413","metadata":false},{"id":372314,"structure_id":52969,"section_number":"58.1-414","catch_line":"Sales factor","url":"\/58.1-414\/","token":"58.1\/I\/3\/10\/58.1-414","metadata":false},{"id":372317,"structure_id":52969,"section_number":"58.1-415","catch_line":"When sales of tangible personal property deemed in the Commonwealth","url":"\/58.1-415\/","token":"58.1\/I\/3\/10\/58.1-415","metadata":false},{"id":372318,"structure_id":52969,"section_number":"58.1-416","catch_line":"(Contingent effective date \u2014 See Editor's note) When certain other sales deemed in the Commonwealth","url":"\/58.1-416\/","token":"58.1\/I\/3\/10\/58.1-416","metadata":false},{"id":372319,"structure_id":52969,"section_number":"58.1-417","catch_line":"Motor carriers; apportionment","url":"\/58.1-417\/","token":"58.1\/I\/3\/10\/58.1-417","metadata":false},{"id":372320,"structure_id":52969,"section_number":"58.1-418","catch_line":"Financial corporations; apportionment","url":"\/58.1-418\/","token":"58.1\/I\/3\/10\/58.1-418","metadata":false},{"id":372321,"structure_id":52969,"section_number":"58.1-419","catch_line":"Construction corporations; apportionment","url":"\/58.1-419\/","token":"58.1\/I\/3\/10\/58.1-419","metadata":false},{"id":372322,"structure_id":52969,"section_number":"58.1-420","catch_line":"Railway companies; apportionment","url":"\/58.1-420\/","token":"58.1\/I\/3\/10\/58.1-420","metadata":{"court_decisions":{"0":{"name":" .\u202f.\u202f. Commonwealth of Virginia, Department of Taxation v. FJ .\u202f.\u202f. ","case_number":"0701232","citation":null,"date":"2024-11-12","url":"https:\/\/www.courtlistener.com\/opinion\/10272400\/commonwealth-of-virginia-department-of-taxation-v-fj-management-inc\/","abstract":" .\u202f.\u202f. COURT OF APPEALS OF VIRGINIA .\u202f.\u202f. ","court_html":"<abbr title=\"Court of Appeals\">COA<\/abbr>"}}}},{"id":372323,"structure_id":52969,"section_number":"58.1-421","catch_line":"Alternative method of allocation","url":"\/58.1-421\/","token":"58.1\/I\/3\/10\/58.1-421","metadata":false},{"id":372329,"structure_id":52969,"section_number":"58.1-422","catch_line":"Manufacturing companies; apportionment","url":"\/58.1-422\/","token":"58.1\/I\/3\/10\/58.1-422","metadata":{"court_decisions":{"0":{"name":" .\u202f.\u202f. Commonwealth of Virginia, Department of Taxation v. 1887 .\u202f.\u202f. ","case_number":"0598222","citation":null,"date":"2023-05-23","url":"https:\/\/www.courtlistener.com\/opinion\/9401156\/commonwealth-of-virginia-department-of-taxation-v-1887-holdings-inc\/","abstract":" .\u202f.\u202f. COURT OF APPEALS OF VIRGINIA .\u202f.\u202f. ","court_html":"<abbr title=\"Court of Appeals\">COA<\/abbr>"}}}},{"id":372324,"structure_id":52969,"section_number":"58.1-422.1","catch_line":"Retail companies; apportionment","url":"\/58.1-422.1\/","token":"58.1\/I\/3\/10\/58.1-422.1","metadata":{"court_decisions":""}},{"id":372325,"structure_id":52969,"section_number":"58.1-422.2","catch_line":"Apportionment; taxpayers with enterprise data center operations","url":"\/58.1-422.2\/","token":"58.1\/I\/3\/10\/58.1-422.2","metadata":false},{"id":372326,"structure_id":52969,"section_number":"58.1-422.3","catch_line":"Debt buyers; apportionment","url":"\/58.1-422.3\/","token":"58.1\/I\/3\/10\/58.1-422.3","metadata":false},{"id":372327,"structure_id":52969,"section_number":"58.1-422.4","catch_line":"Property information and analytics firms","url":"\/58.1-422.4\/","token":"58.1\/I\/3\/10\/58.1-422.4","metadata":false},{"id":372328,"structure_id":52969,"section_number":"58.1-422.5","catch_line":"(Contingent effective date \u2014 See Editor's note) Internet root infrastructure providers","url":"\/58.1-422.5\/","token":"58.1\/I\/3\/10\/58.1-422.5","metadata":false},{"id":372330,"structure_id":52969,"section_number":"58.1-423","catch_line":"Income tax paid by commercial spaceflight entities","url":"\/58.1-423\/","token":"58.1\/I\/3\/10\/58.1-423","metadata":false}],"previous_section":{"id":372322,"structure_id":52969,"section_number":"58.1-420","catch_line":"Railway companies; apportionment","url":"\/58.1-420\/","token":"58.1\/I\/3\/10\/58.1-420","metadata":{"court_decisions":{"0":{"name":" .\u202f.\u202f. Commonwealth of Virginia, Department of Taxation v. FJ .\u202f.\u202f. ","case_number":"0701232","citation":null,"date":"2024-11-12","url":"https:\/\/www.courtlistener.com\/opinion\/10272400\/commonwealth-of-virginia-department-of-taxation-v-fj-management-inc\/","abstract":" .\u202f.\u202f. COURT OF APPEALS OF VIRGINIA .\u202f.\u202f. ","court_html":"<abbr title=\"Court of Appeals\">COA<\/abbr>"}}}},"next_section":{"id":372329,"structure_id":52969,"section_number":"58.1-422","catch_line":"Manufacturing companies; apportionment","url":"\/58.1-422\/","token":"58.1\/I\/3\/10\/58.1-422","metadata":{"court_decisions":{"0":{"name":" .\u202f.\u202f. Commonwealth of Virginia, Department of Taxation v. 1887 .\u202f.\u202f. ","case_number":"0598222","citation":null,"date":"2023-05-23","url":"https:\/\/www.courtlistener.com\/opinion\/9401156\/commonwealth-of-virginia-department-of-taxation-v-1887-holdings-inc\/","abstract":" .\u202f.\u202f. COURT OF APPEALS OF VIRGINIA .\u202f.\u202f. ","court_html":"<abbr title=\"Court of Appeals\">COA<\/abbr>"}}}},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-421\/","history_text":"<p>The record of this law\u2019s original creation isn\u2019t available online. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 1984, chapter 675.<\/p>","references":false,"refers_to":false,"permalink":{"id":1480467,"object_type":"law","relational_id":372323,"identifier":"58.1-421","token":"58.1\/I\/3\/10\/58.1-421","url":"\/58.1-421\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/58.1-421\/","token":"58.1\/I\/3\/10\/58.1-421","dublin_core":{"Title":"Alternative method of allocation","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-421","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section><p>If any <span class=\"dictionary\">corporation<\/span> believes that the method of allocation or apportionment hereinbefore prescribed as administered by the <span class=\"dictionary\">Department<\/span> has operated or will so operate as to subject it to taxation on a greater portion of its Virginia taxable income than is reasonably attributable to business or sources within this Commonwealth, it shall be entitled to file with the <span class=\"dictionary\">Department<\/span> a statement of its objections and of such alternative method of allocation or apportionment as it believes to be proper under the circumstances with such detail and proof and within such time as the <span class=\"dictionary\">Department<\/span> may reasonably prescribe. If the <span class=\"dictionary\">Department<\/span> concludes that the method of allocation or apportionment theretofore employed is in <span class=\"dictionary\">fact<\/span> inapplicable or inequitable, it shall redetermine the taxable income by such other method of allocation or apportionment as seems best calculated to assign to the Commonwealth for taxation the portion of the income reasonably attributable to business and sources within the Commonwealth, not exceeding, however, the amount which would be arrived at by application of the statutory rules for allocation or apportionment.<\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nALTERNATIVE METHOD OF ALLOCATION (\u00a7 58.1-421)\n\nIf any corporation believes that the method of allocation or apportionment\nhereinbefore prescribed as administered by the Department has operated or will\nso operate as to subject it to taxation on a greater portion of its Virginia\ntaxable income than is reasonably attributable to business or sources within\nthis Commonwealth, it shall be entitled to file with the Department a statement\nof its objections and of such alternative method of allocation or apportionment\nas it believes to be proper under the circumstances with such detail and proof\nand within such time as the Department may reasonably prescribe. If the\nDepartment concludes that the method of allocation or apportionment theretofore\nemployed is in fact inapplicable or inequitable, it shall redetermine the\ntaxable income by such other method of allocation or apportionment as seems best\ncalculated to assign to the Commonwealth for taxation the portion of the income\nreasonably attributable to business and sources within the Commonwealth, not\nexceeding, however, the amount which would be arrived at by application of the\nstatutory rules for allocation or apportionment.\n\nHISTORY: Code 1950, \u00a7 58-151.051; 1971, Ex. Sess., c. 171; 1984, c. 675.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}