500EC: Virginia Electric Cooperative Modified Net Income Tax Return (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Form 500EC is the 2024 Electric Cooperative Modified Net Income Tax Return. It reports Virginia electricity sales revenue, expenses allocated to nonmember sales, modified net income, and the calculation of tax, payments, and any balance due or refund.
When it's due
For tax year 2024, mail Form 500EC on or before the 15th day of the 4th month following the close of the taxable year.
What you'll need
The form calls for the following information and supporting forms:
- The cooperative’s FEIN, mailing address, incorporation details, business activity, and NAICS code.
- Virginia electricity sales revenue, including sales to members and nonmembers, and expense amounts for the method used.
- Amounts of 2024 estimated Virginia tax payments, extension payments, and other payments.
- Schedule 500MT, to report the modified net income tax and obtain the tax amount for Line 8a.
- Schedule 500CR, if reporting tax credits on Line 7.
- A schedule supporting expenses entirely attributable to Virginia electricity sales to nonmembers, if using Line 18 under Method 1.
- Form 500C, for the additional charge on Line 13.
- Form 500V, to enclose with payment.
How to file
Complete the cooperative’s identifying information and the tax calculation. Use either Method 1 or Method 2 to calculate the nonmember share of ordinary and necessary expenses, then enter that amount on Line 4.
Enter Line 8 on Line 5 of Schedule 500MT, and enter the amount from Schedule 500MT, Line 12, on Form 500EC, Line 8a. Complete the payment, balance due, or overpayment lines as applicable.
Have an authorized officer sign and date the return and provide their title, printed name, and phone number. The form also includes a preparer information and signature area.
Mail the return to:
Virginia Department of Taxation
P.O. Box 1500
Richmond, VA 23218-1500
Make checks payable to the Virginia Department of Taxation. Enclose Form 500V with payment. If paid by EFT, check the box on Line 14.
Common mistakes
- Leaving out fiscal-year or short-year details. The form directs these filers to enter beginning and ending dates and check the designated box.
- Missing the transfers to and from Schedule 500MT. Also enter Form 500EC, Line 8, on Schedule 500MT, Line 5. Use Schedule 500MT, Line 12, for Form 500EC, Line 8a.
- Omitting required enclosures. Line 18 calls for an expense schedule, Line 13 calls for Form 500C, and Line 14 calls for Form 500V with payment.
- Not marking an EFT payment. If paid by EFT, check the box on Line 14.
- Not giving a reason code for an amended return. The amended-return checkbox includes a space for the reason code.
Questions people ask
How is modified net income calculated?
Subtract revenue from Virginia electricity sales to members from total Virginia electricity sales revenue. Then subtract the nonmember share of ordinary and necessary expenses. The result goes on Line 5.
What tax rate is printed on the form?
Line 6 calculates tax as 6% of the modified net income on Line 5. The form then accounts for credits and uses Schedule 500MT to determine the tax amount entered on Line 8a.
How do I calculate the nonmember share of expenses?
Use either Method 1 or Method 2. Method 1 adds expenses entirely attributable to nonmember sales to an allocated share of other expenses. Method 2 multiplies total expenses attributed to all Virginia electricity sales by the nonmember sales ratio. Enter the result on Line 4.
Can an overpayment be applied to next year’s estimated tax?
Yes. Line 16 lets you designate an amount of the overpayment for 2025 estimated tax. Line 17 shows the remaining amount to be refunded.
How do I mark a final return?
Check the “Final Return / Close Account” box if the cooperative is no longer liable for tax.