Instructions for Schedule 500mt - Electric Cooperatives Minimum Tax Credit Schedule 2017

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2017 INSTRUCTIONS FOR PREPARING SCHEDULE 500MT
ELECTRIC COOPERATIVES MINIMUM TAX CREDIT SCHEDULE
Electric cooperatives are required to pay a minimum tax rather than a modified net income tax for any taxable year their
minimum tax liability is greater than their modified net income tax liability. The minimum tax is equal to 1.45% of the electric
cooperative’s gross receipts from sales to nonmembers minus the state’s portion of the consumption tax collected from
nonmembers. For years in which the minimum tax exceeds the modified net income tax, a carry forward credit is computed
for use against future modified net income tax when modified net income tax exceeds the minimum tax.
LINE-BY-LINE INSTRUCTIONS:
Part I - Minimum Tax Computation
Line 10: Subtotal - Subtract Line 9 from Line 8.
Line 11: Add Line 4 and Line 10.
Line 1:
Enter the amount of gross receipts as certified by
Line 12: Tax. Enter the greater of Line 4 or Line 11. Enter
the State Corporation Commission.
this amount on Line 8a of Form 500EC.
Line 2:
Multiply Line 1 by 1.45% (.0145), the minimum tax
rate, or enter the amount of minimum tax certified
Part III - Tax Credit Carryover Amount
by the State Corporation Commission.
Line 3:
Enter the state’s portion of the electric utility
Line 13: If Line 4 (minimum tax) exceeds Line 5 (modified
consumption tax collected from nonmembers.
net income tax), subtract Line 5 from Line 4 and
enter the result. This is the credit amount available
Line 4:
Minimum Tax - Subtract Line 3 from Line 2.
for carry forward to subsequent tax years.
Line 14: Enter the amount of carryover credit from Part III,
Part II - Tax Computation
Line 17 of previous year’s Schedule 500MT.
Line 5:
Enter the modified net income tax from Line 8
Line 15: Subtotal - Add Line 13 and Line 14.
of Form 500EC. If Line 4 is greater than Line 5,
Line 16: Enter the amount of credit used in the current year
enter that amount on Line 12 and skip to Line 13
from Line 7.
to compute the modified net income tax credit
carryover amount. If Line 5 is greater than Line 4,
Line 17: Subtract Line 16 from Line 15. This is the amount
continue to Line 6.
of carryover credit available for subsequent years.
Line 6:
Subtract Line 4 from Line 5.
Part IV - Estimated Income Tax Carryover
Line 7:
Enter the amount of credit available from Part III,
Amount
Line 17 of previous year’s Schedule 500MT (not to
exceed the amount on Line 6).
Line 18: Enter the amount of unused estimated income tax
Line 8:
Subtract Line 7 from Line 6.
payments from prior years.
Line 9:
If estimated payments were made and not used
Line 19: Enter the amount of estimated tax used in payment
in 2001, 2002, and/or 2003, enter the available
of current year taxes (from Line 9).
amount here. Do not exceed the amount of excess
Line 20: Subtract Line 19 from Line 18. This is the amount
modified net income tax on Line 8.
of carryover estimated income tax payments
available for subsequent years.
Va. Dept. of Taxation 2601121 Rev. 08/17
2017 INSTRUCTIONS FOR PREPARING SCHEDULE 500MT
ELECTRIC COOPERATIVES MINIMUM TAX CREDIT SCHEDULE
Electric cooperatives are required to pay a minimum tax rather than a modified net income tax for any taxable year their
minimum tax liability is greater than their modified net income tax liability. The minimum tax is equal to 1.45% of the electric
cooperative’s gross receipts from sales to nonmembers minus the state’s portion of the consumption tax collected from
nonmembers. For years in which the minimum tax exceeds the modified net income tax, a carry forward credit is computed
for use against future modified net income tax when modified net income tax exceeds the minimum tax.
LINE-BY-LINE INSTRUCTIONS:
Part I - Minimum Tax Computation
Line 10: Subtotal - Subtract Line 9 from Line 8.
Line 11: Add Line 4 and Line 10.
Line 1:
Enter the amount of gross receipts as certified by
Line 12: Tax. Enter the greater of Line 4 or Line 11. Enter
the State Corporation Commission.
this amount on Line 8a of Form 500EC.
Line 2:
Multiply Line 1 by 1.45% (.0145), the minimum tax
rate, or enter the amount of minimum tax certified
Part III - Tax Credit Carryover Amount
by the State Corporation Commission.
Line 3:
Enter the state’s portion of the electric utility
Line 13: If Line 4 (minimum tax) exceeds Line 5 (modified
consumption tax collected from nonmembers.
net income tax), subtract Line 5 from Line 4 and
enter the result. This is the credit amount available
Line 4:
Minimum Tax - Subtract Line 3 from Line 2.
for carry forward to subsequent tax years.
Line 14: Enter the amount of carryover credit from Part III,
Part II - Tax Computation
Line 17 of previous year’s Schedule 500MT.
Line 5:
Enter the modified net income tax from Line 8
Line 15: Subtotal - Add Line 13 and Line 14.
of Form 500EC. If Line 4 is greater than Line 5,
Line 16: Enter the amount of credit used in the current year
enter that amount on Line 12 and skip to Line 13
from Line 7.
to compute the modified net income tax credit
carryover amount. If Line 5 is greater than Line 4,
Line 17: Subtract Line 16 from Line 15. This is the amount
continue to Line 6.
of carryover credit available for subsequent years.
Line 6:
Subtract Line 4 from Line 5.
Part IV - Estimated Income Tax Carryover
Line 7:
Enter the amount of credit available from Part III,
Amount
Line 17 of previous year’s Schedule 500MT (not to
exceed the amount on Line 6).
Line 18: Enter the amount of unused estimated income tax
Line 8:
Subtract Line 7 from Line 6.
payments from prior years.
Line 9:
If estimated payments were made and not used
Line 19: Enter the amount of estimated tax used in payment
in 2001, 2002, and/or 2003, enter the available
of current year taxes (from Line 9).
amount here. Do not exceed the amount of excess
Line 20: Subtract Line 19 from Line 18. This is the amount
modified net income tax on Line 8.
of carryover estimated income tax payments
available for subsequent years.
Va. Dept. of Taxation 2601121 Rev. 08/17

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