FWV: Farm Wineries and Vineyards Credit Application (2025)
Virginia · Virginia Tax · Used for tax years 2025
Virginia Form FWV is an application for the Farm Wineries and Vineyards Tax Credit. It reports business information, qualified capital expenditures, and the requested credit, calculated at 25% of those expenditures. Schedule A lists each expenditure’s date, description, supplier,
Who files this form
Virginia farm wineries and vineyards with qualified capital expenditures may apply for this credit using Form FWV. Applicants must apply each year and receive approval before claiming the credit on a Virginia income tax return.
- A Virginia farm winery is an establishment in Virginia licensed as a farm winery under Va. Code § 4.1-206.1.
- A Virginia vineyard is agricultural land in Virginia with at least one contiguous acre dedicated to grapes used, or intended for use, in making wine by a Virginia farm winery, including plants and other improvements on that land.
The expenditures must relate to establishing a new Virginia farm winery or vineyard, or making capital improvements to an existing one.
When it's due
For the application covering tax year 2025 expenditures, the printed schedule is:
- April 1 following the taxable year: Complete and mail Form FWV and its attachments no later than this date.
- May 1: The Department will contact you by this date if it needs more information.
- May 15: Respond by this date if additional information is requested.
- May 31: If you have not received acknowledgement of your application by this date, call (804) 786-2992.
- June 30: The Department will issue the credit by this date.
- July 15: If you have not received your credit certification by this date, call (804) 786-2992.
For an application received without a postmark, the Department uses the date it receives the application to determine whether it met the filing deadline.
What you'll need
- Form FWV: Provide taxpayer and business information, FEIN or SSN, entity type, credit calculation, and an authorized signature.
- Schedule A: Enclose a detailed description, purchase date, supplier, and amount for each qualified expenditure. You may submit copies of Schedule A if you need more space.
- Supporting records: Keep receipts and other supporting documentation for your records. Examples include invoices, canceled checks, bank statements, and credit card statements. Supporting documents must clearly separate qualified costs from ineligible costs.
- Form R-1, if needed: Business taxpayers should be registered with the Department before completing Form FWV. If not registered, complete Form R-1.
- Pass-through entity documents: An entity allocating the credit must file Form TCA and give each participant Schedule VK-1.
How to file
- Complete the taxpayer and business information and identify whether the business qualifies as a Virginia farm winery or vineyard.
- Complete Schedule A. Enter total qualified capital expenditures on Line 1, then multiply by 25% to calculate the credit requested on Line 2.
- Sign the declaration and submit Form FWV with Schedule A and any other enclosures using one of these methods:
Mail:
Virginia Department of Taxation
ATTN: Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715
Fax: (804) 774-3902
Do not both mail and fax the application.
Wait for notification of the allowable credit before claiming it on the applicable Virginia income tax return. If that return is due on or before May 1, you may need to submit an extension payment for tax due or file an amended return after receiving credit certification.
Pass-through entities must file Form TCA when allocating the credit. File it within 30 days after the credit is granted, but at least 90 days before participants file their income tax returns. Use the same mailing address or fax number above, not both.
Common mistakes
- Including expenses deducted under IRC § 179. You cannot use the same expenses for this credit and a federal deduction under that section.
- Including ineligible costs. Only expenditures on the qualified list are eligible. Utilities, service costs, repairs, and maintenance are ineligible. Clearly separate these costs in supporting documents.
- Claiming the credit before approval. The credit must be approved before it is claimed on a return.
- Sending the application twice. Mail or fax it, but do not do both. The same warning applies to Form TCA.
- Entering an email address when you do not want email communications. Providing an email address gives consent for application-related emails from the Department.
- Failing to file Form TCA. For pass-through allocations, this may cause the participant’s credit claim to be disallowed or delay return processing.
Questions people ask
How much is the credit?
The credit is 25% of qualified capital expenditures. Total credits available to all taxpayers are capped at $250,000 per calendar year. If applications exceed that amount, the Department allocates credits on a pro rata basis.
What kinds of purchases qualify?
The qualified list includes items such as barrels, bottling equipment, grape plants, irrigation equipment, tractors, and wine tanks. Purchase and installation costs for listed items can qualify when connected with establishing a new Virginia farm winery or vineyard or making capital improvements to an existing one. Items not on the qualified list are ineligible.
What if my approved credit exceeds my tax liability?
You may carry forward the excess credit for 10 years.
How is the credit divided among business owners?
Credits attributable to a partnership, S corporation, or LLC are allocated to partners, shareholders, or members in proportion to their ownership or interest in the business. Pass-through entities must file Form TCA and provide each participant with Schedule VK-1.