500CR: Credit Computation Schedule for Corporation Returns (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Schedule 500CR is the Credit Computation Schedule for Corporations, enclosed with the Virginia Corporation Income Tax Return, Form 500. It calculates allowable tax credits and tracks credit carryovers and certain credit transfers.
Who files this form
Schedule 500CR is for corporations claiming the tax credits listed on the schedule with their 2024 Virginia Corporation Income Tax Return, Form 500. It computes both nonrefundable and refundable credits.
Enclose Schedule 500CR with Form 500 when claiming these credits.
What you'll need
Have your 2024 Virginia Form 500 available, including the tax amount on Line 9. Enter your corporation’s name as shown on the Virginia return and its FEIN on Schedule 500CR.
For an original credit claim, the form lists these enclosures:
- Biodiesel and Green Diesel Fuels: The Virginia Department of Taxation’s certification letter authorizing the credit.
- Vehicle Emissions Testing Equipment: A copy of your Air Check Virginia Station Participation and Services Agreement or Northern Virginia Analyzer Equipment Certification.
- Waste Motor Oil Burning Equipment: Approved Form 50-12 from the Department of Environmental Quality, plus receipts, invoices, or other documentation confirming the purchase price paid.
- Coalfield Employment Enhancement: Form 306D and additional pages, if applicable.
For a carried-forward credit, include a computation schedule. The form also directs you to the Schedule 500CR instructions for additional enclosure requirements.
How to file
- Complete the parts of Schedule 500CR for the credits you are claiming.
- Enter the tax from Form 500, Line 9, in Section 1, Line 1A. This is the maximum total nonrefundable credit amount.
- Total your allowable nonrefundable credits in Section 2 and transfer Line 1B to Form 500, Line 10.
- Total your refundable credits in Section 4 and enter that amount on Form 500, Line 14.
- Enclose Schedule 500CR and the required supporting documents with Form 500.
The supplied form does not give a mailing address or e-file directions.
Common mistakes
- Leaving out supporting documents. The form warns that missing enclosures may cause a credit to be disallowed. Computation schedules are required for carried-forward credits.
- Claiming too much in nonrefundable credits. The total cannot exceed the tax from Form 500, Line 9.
- Overlooking individual credit limits. For example, the Major Research and Development Expenses credit cannot exceed 75% of the tax on your return, and each Historic Rehabilitation credit holder cannot claim more than $5 million.
- Claiming a new Enterprise Zone Act credit. The form allows only Enterprise Zone Real Property Investment Tax Credit carryovers from prior years.
Questions people ask
Does Schedule 500CR cover refundable credits?
Yes. Section 3 lists refundable credits. Their total goes in Section 4 and on Form 500, Line 14.
Can I carry unused credits into another year?
Several credits have carryover provisions, but the periods differ. For example, the Biodiesel and Green Diesel Fuels credit has a 3-year carryover period, the Neighborhood Assistance Act credit has a 5-year period, and the Livable Home credit has a 7-year period. Follow the provision for your specific credit.
How do I account for credits transferred to someone else?
The Biodiesel and Green Diesel Fuels, Land Preservation, and Port Volume Increase parts have lines for credits transferred to others. Those amounts are subtracted when computing the credit available to you.
Where can I get copies of vehicle emissions credit documents?
For a copy of your service agreement, contact Opus Inspection at (703) 822-7587. For a copy of the Analyzer Equipment Certification, contact Air Check Virginia at (703) 583-3800.