# Va. Code Ann. § 38.2-1709: Tax write-offs of certificates of contributions > Virginia · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1709 ## Section - **Citation:** Va. Code Ann. § 38.2-1709 - **Heading:** Tax write-offs of certificates of contributions - **Jurisdiction:** Virginia - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Virginia Code / Title 38.2 / Chapter 17 / Article 1 / Section 38.2-1709 ## Text A. A member insurer shall have at its option the right to show a certificate of contribution as an asset in the form approved by the Commission pursuant to subsection H of § 38.2-1705 at the original face amount for the calendar year of issuance. Such amount shall be amortized over the 10 calendar years following the year the contribution was paid in amounts each equal to 10 percent of the amount of the contribution. B. The member insurer may offset the amount of the certificate amortized in a calendar year as provided in subsection A. This amount shall be deducted from the premium tax liability incurred on business transacted in the Commonwealth for that year. However, the Association shall diligently pursue all rights available to it to recover its expenditures made in the fulfillment of its responsibilities under this chapter. If the Commission determines after a hearing that the Association is not diligently pursuing available measures of recovery, the Commission shall notify the Department and contributing member insurers will not be able to offset amounts amortized during the period that the Commission determines that the Association has not been diligently pursuing available measures of recovery. C. Any sums for which a certificate of contribution has been issued that have been (i) amortized by contributing insurers and offset against premium taxes as provided in subsection B and (ii) subsequently refunded pursuant to subsection F of § 38.2-1705 shall be paid to the Department of Taxation and deposited with the State Treasurer for credit to the general fund of the Commonwealth. D. The amount of any credit against premium taxes provided for in this section for a member insurer shall be reduced by the amount of reduction in federal income taxes for any deduction claimed by the member insurer for an assessment paid pursuant to this chapter. E. A member insurer that is exempt from taxes referenced in subsection A may recoup its assessments by a surcharge on its premiums in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the Commission. Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax, the loss ratio, or agent commission. If a member insurer collects excess surcharges, the member insurer shall remit the excess amount to the Association, and the excess amount shall be applied to reduce future assessments in the appropriate account. 1976, c. 330, § 38.1-482.27; 1986, c. 562; 1987, cc. 565, 655; 1991, c. 371; 1997, c. 160 ; 2010, c. 510 ; 2011, c. 850 ; 2018, c. 706 . ## Nearby sections - [Va. Code Ann. § 38.2-1700 Purpose and applicability of chapter](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1700.md) - [Va. Code Ann. § 38.2-1701 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1701.md) - [Va. Code Ann. § 38.2-1702 Association; creation; memberships; accounts; supervision](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1702.md) - [Va. Code Ann. § 38.2-1703 Board of directors of Association](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1703.md) - [Va. Code Ann. § 38.2-1704 Powers and duties of Association](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1704.md) - [Va. Code Ann. § 38.2-1705 Assessments](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1705.md) - [Va. Code Ann. § 38.2-1706 Plan of operation](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1706.md) - [Va. Code Ann. § 38.2-1707 Duties and powers of the Commission](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1707.md) - [Va. Code Ann. § 38.2-1708 Detection and prevention of insolvencies](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1708.md) - [Va. Code Ann. § 38.2-1709 Tax write-offs of certificates of contributions](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1709.md) - [Va. Code Ann. § 38.2-1710 Miscellaneous provisions](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1710.md) - [Va. Code Ann. § 38.2-1711 Examination of the Association; annual report](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1711.md) - [Va. Code Ann. § 38.2-1712 Tax exemptions](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1712.md) - [Va. Code Ann. § 38.2-1713 Immunity](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1713.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C17_A1_S38.2-1709. Check the current official text before relying on it. Not legal advice.