500EC: Virginia Electric Cooperative Modified Net Income Tax Return (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Form 500EC is the 2025 Electric Cooperative Modified Net Income Tax Return. It reports Virginia electricity sales revenue, expenses allocated to nonmember sales, modified net income, tax credits, payments, and any tax due or overpayment.
Who files this form
Form 500EC is Virginia’s 2025 Electric Cooperative Modified Net Income Tax Return. It reports revenue from electricity sales in Virginia, separates sales to members and nonmembers, and calculates modified net income tax.
The form includes options for an amended return and a final return to close an account when the cooperative is no longer liable for tax.
When it's due
For tax year 2025, mail the return on or before the 15th day of the 4th month following the close of the taxable year.
What you'll need
Have the information and applicable schedules needed to complete the form:
- The cooperative’s FEIN, mailing address, incorporation details, business activity description, and NAICS code.
- Revenue figures for all electricity sales in Virginia and sales to members in Virginia.
- Expense figures for either Method 1 or Method 2. For Method 1, enclose a schedule of expenses entirely attributable to electricity sales to nonmembers in Virginia.
- Schedule 500MT, which is used with Lines 8 and 8a.
- Schedule 500CR information if reporting tax credits on Line 7.
- Amounts of 2025 estimated Virginia tax payments, extension payments, and other payments.
- Form 500C for an additional charge on Line 13.
- Form 500V to enclose with payment.
How to file
Complete the return and have an authorized officer sign and date it. The form also provides fields for the officer’s printed name, title, and phone number, and for a preparer’s information and signature.
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 payment was made by EFT, check the box on Line 14.
Common mistakes
Follow these reminders printed on the form:
- If filing for a fiscal or short year, enter the beginning and ending dates and check the designated box.
- Use either Method 1 or Method 2 to calculate nonmember ordinary and necessary expenses.
- If using Method 1, enclose the schedule requested for Line 18.
- Also enter the modified net income tax from Line 8 on Line 5 of Schedule 500MT.
- Enclose Form 500C for the additional charge on Line 13.
- Enclose Form 500V with payment, or check the Line 14 box if paid by EFT.
- If checking “Amended Return,” enter a reason code.
Questions people ask
How is modified net income calculated?
Subtract revenue from electricity sales to members in Virginia from total electricity sales revenue in Virginia. Then subtract the nonmember share of ordinary and necessary expenses.
What tax rate does the form use?
Line 6 calculates tax as 6% of modified net income on Line 5. Line 7 reports tax credits, which are subtracted on Line 8.
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 electricity sales in Virginia by the nonmember sales ratio.
Can an overpayment be applied to next year’s estimated tax?
Yes. Line 16 lets you apply an amount of the Line 15 overpayment to 2026 estimated tax. Line 17 shows the remaining amount to be refunded.