500AP: Modified Apportionment Schedule for VEDP-Certified Companies (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Schedule 500AP is used by VEDP-certified companies to calculate modified Virginia apportionment amounts. It reports amounts for all of Virginia, qualified Virginia localities, and modified Virginia amounts to transfer to the applicable apportionment schedule.
Who files this form
Companies certified by the Virginia Economic Development Partnership (VEDP) that are eligible to use modified apportionment factors must use Schedule 500AP to determine the modified amount attributable to Virginia.
Complete Schedule 500AP before completing the apportionment schedule appropriate for your return: Schedule 500A, 500AC, or 502A.
What you'll need
Have the following information and forms available:
- Your company name as shown on Form 500 or Form 502, and your FEIN.
- Your VEDP certification number.
- Your qualification year, from 1st through 7th.
- Whether your business operates entirely within Virginia or both within and outside Virginia.
- Amounts for all of Virginia and qualified Virginia localities for the apportionment method that applies to your company.
- The applicable apportionment schedule: Schedule 500A, 500AC, or 502A.
The form directs you to read the instructions before completing it.
Common mistakes
- Treating an entirely Virginia business differently for this calculation. The form warns that an eligible company conducting its entire business within Virginia must complete its applicable apportionment schedule and income tax return as if it were a multistate company. It refers you to the instructions for Schedule 500A or Form 502 for more information.
- Skipping the instructions. The form specifically directs you to read the instructions before completing Schedule 500AP.
Questions people ask
What do Columns A, B, and C represent?
Column A is for all of Virginia, Column B is for qualified Virginia localities, and Column C is for the modified Virginia amount.
Do I subtract Column B from Column A on every line?
The form directs you to subtract Column B from Column A on lines 1 through 4 and lines 8(a) and 8(b). Column C is preprinted as $0 on lines 5 through 7 and line 8(c).
Where do I transfer the Column C amounts?
Transfer them to Column B of the applicable apportionment schedule: Schedule 500A, 500AC, or 502A. Those amounts serve as the numerator when calculating the apportionment percentage used to compute income subject to Virginia tax.
What if my eligible company operates only in Virginia?
You must complete the appropriate apportionment schedule and your income tax return as if your company were a multistate company. The form refers you to the instructions for Schedule 500A or Form 502 for additional information.