FCD-1/FCD-2: Food Donation Tax Credit Application and Donation Certification (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Forms FCD-1 and FCD-2 are the Food Donation Tax Credit Application and Food Donation Certification. The donor completes FCD-1 to report donated food crops or wholesome foods and calculate the credit requested, while the receiving nonprofit food bank completes FCD-2 to ce
Who files this form
For tax year 2025, this credit is available to a person engaged in the business of farming as defined under 26 C.F.R. § 1.175-3 who donates food crops they grew or wholesome food they produced in Virginia to a qualifying nonprofit food bank.
- The donor completes Form FCD-1 to apply for the credit.
- The nonprofit food bank completes Form FCD-2 to certify the donation.
- The donor submits both forms to the Virginia Department of Taxation.
A qualifying food bank must be located in Virginia, be exempt from tax under IRC § 501(c)(3), and have a principal purpose of providing food to the needy. The donated food must meet the use and distribution restrictions stated in the form.
When it's due
For tax year 2025 donations, the application and review schedule is in the year following the donation year:
- February 1: Submit Forms FCD-1 and FCD-2. Without a postmark, the Department uses the date it receives the application to determine whether it is timely.
- March 1: The Department will contact you by this date if it needs additional information.
- March 15: Respond to any request for additional information by this date. If you have not received acknowledgment of your application, call (804) 786-2992.
- April 1: The Department will issue the credit by this date.
- April 15: If you have not received your credit certification, call (804) 786-2992.
The food bank must prepare and give the donor Form FCD-2 within 30 days of the donation.
A pass-through entity allocating the credit must file Form TCA within 30 days after the credit is granted, but at least 90 days before participants file their income tax returns.
You must receive credit certification before claiming the credit. If the return claiming the credit is due on or before April 15, you may need to submit an extension payment for tax due or file an amended return after receiving certification.
What you'll need
Submit with the application:
- Form FCD-1, completed and signed by the donor.
- Form FCD-2, completed and signed by the recipient nonprofit food bank. Include a separate FCD-2 for each qualifying food bank that received donations.
- A separate sheet for FCD-2 donation information if more space is needed.
Have your taxpayer identification number, contact information, and donation details available. The forms request the food type or description, weight in pounds, and fair market value. Form FCD-2 also requests donation dates and the valuation approach used.
Keep, but do not submit: Timely and accurate records supporting eligibility and the amount claimed, including records showing how the food bank determined fair market value.
When claiming an approved credit: Corporations file Schedule 500CR, individuals file Schedule CR, and pass-through entities file Schedule 502ADJ. Pass-through entities allocating the credit must also file Form TCA and give each participant a Schedule VK-1.
How to file
- Business taxpayers should register with the Department before completing FCD-1. If not registered, complete Form R-1.
- Obtain a completed Form FCD-2 from each recipient food bank. The food bank calculates and reports fair market value.
- Complete and sign one Form FCD-1. Calculate 50% of the donated food's fair market value, then request the lesser of that amount or $10,000.
- Attach all required Forms FCD-2 and any enclosures.
Mail the application to:
Department of Taxation
ATTN: Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715
Or fax it to: (804) 774-3902.
After receiving notification of the allowable credit, claim that amount on the applicable Virginia income tax return. If notification arrives after your return's due date, the text allows filing during the extension period or filing without the credit and then amending after notification. See the applicable return instructions for details.
Send Form TCA to the same address or fax number. Do not both mail and fax Form TCA.
Common mistakes
- Claiming the credit before approval. Department certification is required first.
- Leaving out Form FCD-2. Both forms are required. For multiple food banks, submit one FCD-1 with a separate FCD-2 from each organization.
- Requesting more than $10,000 for the year. This is the maximum aggregate credit per taxpayer per taxable year.
- Sending supporting valuation records with the application. Keep these records, but do not submit them with the application.
- Entering an email address when you do not want electronic communications. Providing an email address consents to emailed communications about this application.
- Failing to file Form TCA when allocating a pass-through credit. This may lead to disallowance of the credit claim or delays in processing participants' returns.
- Overlooking the federal deduction adjustment. To the extent the credit is allowed, the text requires an income addition for an amount claimed as a federal income tax deduction for the donation.
Questions people ask
How much is the credit?
The credit equals 50% of the fair market value of eligible donations, up to $10,000 per taxpayer per taxable year. The statewide limit is $250,000 per fiscal year. If applications exceed that limit, the Department allocates credits proportionally.
What food qualifies?
Food crops include grains, fruits, nuts, and vegetables. Wholesome food must meet all federal, state, and local quality standards. It can include food that is not readily marketable because of appearance, age, freshness, grade, surplus, or another condition. The donor must meet the farming and Virginia growing or production requirements.
Who determines fair market value?
The recipient nonprofit food bank calculates fair market value and reports it on Form FCD-2. The text describes a federal approach and an average price approach, and allows the food bank to use the least burdensome approach.
Can I carry forward unused credit?
Credit amounts that exceed your tax liability can be carried forward for five years.
Where can I get help?
Call (804) 786-2992 or write to the Department of Taxation, ATTN: Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-0715. Forms and accompanying instructions are available at www.tax.virginia.gov.