Virginia Gun Safe Tax Credit

The “Firearm Safety Device Credit” provides a credit toward taxpayers’ Virginia state income tax if they purchase a firearm safety device. The maximum credit amount is $300 per individual. The credit may be beneficial, but there are several special rules that taxpayers must follow.

What is the credit for?

The “Firearm Safety Device Credit” is a credit available for purchasing a qualifying safety device.  Qualifying devices include: safes, gun safes, gun cases, lock boxes, any other device designed for or that can be used to store a firearm. If the device does not come with a built-in lock, a separate lock must be purchased in the same transaction.

All purchases must be made from a federally licensed firearms dealer. Only purchases made during the year may be claimed for that tax-year. Taxpayers need to keep the receipt from the transaction as well.

What is the amount of the credit?

The credit is limited to the cost of the device purchased or the maximum credit amount. Just the purchase price and sales tax qualify. Shipping and handling expenses do NOT qualify.

The maximum credit is $300 per individual each year. However, spouses can each claim the credit ($600 total). However, spouses much submit a separate application, and as such the expenses must be separate – at least two separate devices were purchased.

The credit is also not refundable – it will reduce Virginia income tax, but not below $0. Any unused credit amount can be carried forward for up to 5 years.

Some of the guidance also suggests that the device needs to be purchased in a separate transaction than a firearm – to qualify, the safe should not be purchased in the same transaction as a gun.

How to claim the credit?

In addition to claiming the credit on your Virginia tax return, you also have to fill out a separate application. On the application, you must enter your personal information, as well as detailed information about your purchase. Only one application can be submitted per person each year.

Also, only a total of $5 million of credits are available each year, and they are granted in the order applications are received. Interestingly, the 2024 application is not available yet, so it appears taxpayers are not yet able to apply for purchases made this year. The 2023 application is available, but only purchases made in 2023 qualify.

If you have any comments, questions, or ideas for future posts, please let me know

I hope you found this post helpful and educational. If you have any comments, questions, or ideas for future posts, please let me know. You can reach me directly via email at crawford@ulmerfinancial.com.