2022 Virginia        Home Service Contract Provider 

Form 500HS                         Minimum Tax Computation                          *VAHSCP122888*

CHECK HEREif filing aFISCAL orSHORT YEAR RETURN.Enter begin date______________2022,,          and end date _____________, ________. 
Short year filers, enter the calendar year during which provider fees were collected:  _______________.
Name (as shown on Virginia return)                                                                                             FEIN

Part I – Adjusted Corporate Income Tax Computation
1. Corporate income tax liability (from Form 500, Line 9) ..........................................................           1.            .00
2. Tax credits
(A) Neighborhood Assistance Act Tax Credit ..........................................................................          (A)           .00
(B) Enterprise Zone Act Tax Credit (Carryover credits only. See Schedule 500CR Instructions)                                   (B)           .00
(C) Conservation Tillage Equipment Tax Credit (carryover credits only) ................................                        (C)           .00
(D) Biodiesel and Green Diesel Fuels Tax Credit ...................................................................            (D)           .00
(E) Precision Fertilizer and Pesticide Application Equipment Tax Credit (carryover credits only) .....                         (E)           .00
(F) Recyclable Materials Processing Equipment Tax Credit ..................................................                    (F)           .00
(G) Clean-Fuel Vehicle Tax Credit (carryover credits only) .....................................................               (G)           .00
(H) Vehicle Emissions Testing Equipment Tax Credit .............................................................               (H)           .00
(I) Major Business Facility Job Tax Credit .............................................................................       (I)           .00
(J) Reserved for Future Use .................................................................................................. (J)
(K) Historic Rehabilitation Tax Credit ......................................................................................  (K)           .00
(L) Reserved for Future Use .................................................................................................. (L)
(M) Waste Motor Oil Burning Equipment Tax Credit ...............................................................               (M)           .00
(N)  Riparian Waterway Buffer Tax Credit ................................................................................      (N)           .00
(O) Land Preservation Tax Credit ...........................................................................................   (O)           .00
(P) Virginia Coal Employment and Production Incentive Tax Credit (carryover credits only) ....                                 (P)           .00
(Q) Community of Opportunity Tax Credit ...............................................................................        (Q)           .00
(R) Green Job Creation Tax Credit .........................................................................................    (R)           .00
(S) Farm Wineries and Vineyards Tax Credit .........................................................................           (S)           .00
(T) International Trade Facility Tax Credit ..............................................................................     (T)           .00
(U) Port Volume Increase Tax Credit ......................................................................................     (U)           .00
(V) Barge and Rail Usage Tax Credit .....................................................................................      (V)           .00
(W) Livable Home Tax Credit .................................................................................................. (W)           .00
(X) Nonrefundable Research and Development Expenses Tax Credit ..................................                              (X)           .00
(Y) Education Improvement Scholarships Tax Credit .............................................................                (Y)           .00
(Z) Major Research and Development Expenses Tax Credit .................................................                       (Z)           .00
(AA) Food Crop Donation Tax Credit ........................................................................................ (AA)             .00
(BB) Worker Training Tax Credit ............................................................................................... (BB)         .00
(CC) Virginia Housing Opportunity Tax Credit ............................................................................ (CC)               .00
(DD) 100% Coalfield Employment Enhancement Tax Credit from 2022 Form 306D,  
     Part II, Section 1, Line 1 ....................................................................................................... (DD) .00
     a. Full credit: Enter the amount from 2022 Form 306D, Part II, Section 2, Line 3 ...........                              a.            .00
     b. 85% credit: Enter the amount from 2022 Form 306D, Part II, Section 3, Line 5 ..............                            b.            .00
     c. Total Coalfield Employment Enhancement Tax Credit allowable this year:
        Add Lines (DD)a and (DD)b ........................................................................................     c.            .00
(EE) Motion Picture Production Tax Credits ............................................................................. (EE)                .00
(FF) Refundable Research and Development Expenses Tax Credit ........................................ (FF)                                   .00
(GG) Agricultural Best Management Practices Tax Credits ....................................................... (GG)                         .00
(HH) Conservation Tillage and Precision Agriculture Equipment Tax Credit ............................. (HH)                                  .00
Va. Dept. of Taxation  2601025-W  Rev. 07/22

2022 Virginia                      Home Service Contract Provider 
Schedule 500HS                     Minimum Tax Computation                          *VAHSCP222888*
Page 2

Name (as shown on Virginia return)                                                                                                                   FEIN

2. Total tax credits. Add Lines (A) through (I), (K), (M) through (CC), (DD)c, and  
   (EE) through (HH) ............................................................................................................................    2.  .00
3. Adjusted corporate income tax. Subtract Line 2 from Line 1................................................                                        3.  .00

Part II – Minimum Tax Computation

4. Collected provider’s fees for the taxable period  ..................................................................                              4.  .00
5. Minimum tax. Multiply Line 4 by 2.25% (0.0225). .....................................................................                             5.  .00

Part III – Corporate Tax Computation
Separate Return Filers
6. Adjusted corporate income tax. Enter the amount from Part I, Line 3....................................                                           6.  .00

Consolidated / Combined Return Filers 
7. Affiliated corporation adjusted corporate income tax. See instructions. .............................                                             7.  .00

8. Separately computed adjusted corporate income tax of home service contract 
   provider. Enter the amount from the home service contract provider’s Form 500HS, Part 1, 
   Line 3.  ........................................................................................................................................ 8.  .00
9. Adjusted corporate tax liability. Enter the lesser of Line 7 or 8. .............................................                                  9.  .00

Part IV – Tax Liability

10. (a) Separate return filers – Enter the larger of Line 5 or Line 6.
   (b)  Consolidated / combined filers – Enter the larger of Line 5 or Line 9.

   (c)  Noncorporate home service contract providers – If Line 5 is greater than Line 6, 
        subtract Line 6 from Line 5. If Line 5 is less than Line 6, enter -0-.
   Enter the result here and then transfer this amount to Form 500, Page 1 in the HSCP 
   section. .......................................................................................................................................  10. .00

                            Instructions for 2022 Virginia Form 500HS,
             Home Service Contract Provider Minimum Tax Computation

        GENERAL INFORMATION                                   underpayment of any installment of estimated taxes is not 
                                                              imposed, it is irrelevant whether the tax shown on the return 
A home service contract provider is exempt from the  for the preceding taxable year is the corporate income tax or 
insurance premiums license tax and instead will be subject  the minimum tax. 
to the Virginia corporation income tax. Providers must pay a 
minimum tax instead of the 6% corporate income tax (less any  How to File
applicable tax credits), if the minimum tax liability exceeds  Corporations  and pass-through entities must make 
the corporate income tax. The minimum tax on home service     tax  payments  and  file  their  annual  income  tax  returns 
contract providers is 2.25% of collected provider fees.       electronically. Home service contract providers must include 
                                                              the Form 500HS with the electronically-filed Form 500 and 
Who Must File
                                                              Form  502,  if  applicable.  Information  on  filing  and  paying 
All home service contract providers, as defined below, are    electronically  is available  on the Department’s website, 
subject to the minimum tax.                                   www.tax.virginia.gov.
                                                              If  you  are  unable  to  file  and  pay  electronically,  you 
How to Prepare the Return
                                                              must request  a waiver  in  writing  using  the Corporation 
Corporations,  partnerships,  and  all  other types of home  Income  Tax Electronic Filing Waiver Request Form. 
service contract providers must complete both a Form 500HS  Waiver  forms are available  on  the Department’s website, 
and a Virginia Corporation Income Tax Return, Form 500.       www.tax.virginia.gov or by calling (804) 367-8037.
A noncorporate home service contract provider  must           Definitions
complete Form 502, Pass-Through Entity Return of Income                                 provider fees collected on home 
                                                              Collected provider fees – 
and Return of Nonresident Withholding Tax in addition to the  service contracts issued to a resident of the Commonwealth.
Form 500 and Form 500HS. Noncorporate  home  service 
contract providers must calculate an income tax liability     Home service  contract – a contract or agreement  for a 
as if it were a corporation, using a pro forma Form 500 to    separately stated consideration for any duration to perform 
determine a corporate income tax liability to compare to the  the service, repair, replacement, or maintenance of property 
minimum tax.                                                  or to indemnify for the costs of service, repair, replacement, 
                                                              or maintenance, for the operational failure of any property 
Partnerships and all other noncorporate  home service         due to  a defect  in materials, workmanship, inherent 
contract providers must write along the top margin of Form    defect, or normal wear and tear, with or without additional 
500 “RETURN  BY  NONCORPORATE  HOME  SERVICE                  provisions for incidental payment of indemnity under limited 
CONTRACT PROVIDER.”                                           circumstances. Home service contracts may provide for the 
Noncorporate companies are required to submit a schedule  service, repair, replacement, or maintenance of property for 
that lists the name, address, tax identification number, and  damage resulting from power surges or interruption and for 
proportionate share of the home service contract provider’s  accidental damage from handling. Home service contracts 
income and credit taxable to each entity, partner, or other  may provide roof leak coverage.
person.                                                                  a person that is contractually obligated  to the 
                                                              Provider –
When to File                                                  purchaser under the terms of the home service contract.
                                                              Provider fee – the consideration paid for a home service 
Form 500 and Form 500HS are due by the 15th day of 
                                                              contract issued to a resident of the Commonwealth.
the 4th month after the close of the home service contract 
provider’s taxable year.                                      Short Taxable Periods

Estimated Payments of Tax                                     For  tax  returns  that  cover  a  period  less  than  12  months, 
                                                              the  minimum tax is based on the provider fees that were 
A  home  service  contract  provider  must  file  and  pay 
                                                              collected  during  the calendar  year which ends during  the 
installments  of estimated  tax regardless  of whether  the 
                                                              taxable period. If none, the minimum tax is based on provider 
provider will be subject to the minimum tax or the corporate 
                                                              fees that were collected during the most recent calendar year 
income  tax.  For  information  on  how  to  file  estimated 
                                                              that ended before the taxable period. Prorate the minimum 
payments, including a payment schedule, see Form 500ES, 
                                                              tax by multiplying the minimum tax by the number of months 
Corporation Estimated Income Tax Payment Vouchers. 
                                                              in the short taxable year and divide by 12. Indicate this on 
To determine whether a provider has paid enough estimated  the Form 500HS by checking the box at the top of the return 
tax,  see Form 500C, Underpayment  of Estimated  Tax by  and entering the year during which the provider fees were 
Corporations. For purposes of determining the applicability  collected.
of any exceptions under which the addition to the tax for the 

Additional Information                                         Consolidated/Combined Filers
Visit www.tax.virginia.gov to access forms and other tax       Providers  who  are  included  in  a  consolidated/combined 
information. You may also call (804) 367-8037 or write to:     corporate income tax return must determine the portion of 
                                                               the adjusted corporate income tax liability that is attributable 
        Virginia Department of Taxation
                     P.O. Box 1115                             to the provider as follows:
               Richmond, VA 23218-1115                         Line 7: Enter the adjusted  corporate  income  tax from the 
Additional  information regarding  home service contract               group’s Form 500, less any corporate income  tax 
providers  can be found on the Virginia  Department of                 credits that may be used to offset the tax. Refer to 
Agriculture  and Consumer  Services  (VDACS) website  at               Form 500, Lines 9, 10, and 14.
www.vdacs.virginia.gov.                                        Line 8: Separately compute  the home service contract 
                                                                       provider’s adjusted corporate tax liability as if filing a 
               LINE INSTRUCTIONS                                       separate return.
                                                               Line 9: Compare the adjusted corporate income tax of the 
Before completing the Form  500HS, you must  compute                   group (Line 7) to that of the home service contract 
the corporate income tax on Form 500, Lines 1-9. See the               provider (Line 8). Enter the lesser amount. This is 
instructions for Form 500 for information on completing the            the provider’s adjusted corporate income tax liability 
return.                                                                that will be compared to the minimum tax.

Part I – Adjusted Corporate Income Tax Liability               Part IV – Tax Liability

Line 1: Enter the corporate  income  tax liability  computed   Line 10:  (a) Separate  return  filers: compare the  amount 
        on the home service contract provider’s Form 500,              on Line 5 to the amount on Line 6 and enter 
                                                                       the greater of the two.
        Line 9.
                                                                       (b)  Consolidated/combined      filers:  compare 
Line 2: Report  refundable  and  nonrefundable  corporate 
                                                                       Line 5 to Line 9 and enter the greater of the 
        income tax  credit amounts on Lines (A)  through 
                                                                       two.
        (HH). Add Lines  (A) through  (I), (K), (M) through 
        (CC), (DD)c, and (EE) through (HH) and enter the               (c) Noncorporate   home         service  contract
        total.                                                         providers:         compare the  minimum tax  on 
                                                                       Line 5 to the adjusted corporate tax on Line 6. 
Line 3: Subtract the total amount of tax credits on Line 2 
                                                                       If the minimum tax is greater than the corporate 
        from  the  corporate income tax  liability reported 
                                                                       income tax, subtract Line 6 from Line 5. If the 
        on Line 1 to  calculate the home service contract 
                                                                       corporate tax on Line 5 is greater than the 
        provider’s adjusted corporate income tax.
                                                                       minimum tax,  enter -0-.  You do not  owe the 
                                                                       minimum tax. 
Part II – Minimum Tax Computation
                                                                       All home service contract providers must enter 
Line 4: Enter the total collected provider fees. If the return         the  amount from  Line 10 in the  Home Service 
        is based on a period of less than 12 months, see the           Contract Provider section on  Form  500, Page 1. 
        above section Short Taxable Periods.                           Noncorporate  home service contract providers 
Line 5: Calculate the minimum tax liability by multiplying the         must also check the box in this section of Form 500. 
        amount on Line 4 by 2.5% (0.0225).                             In addition, if the amount  on Line  10 is equal  to 
Part III – Corporate Tax Computation                                   minimum tax,  enter this amount on Line 11 of 
                                                                       Form 500 and enter $0 on Line 10 of Form 500.
Separate Return Filers
Line 6: Enter the adjusted  corporate  income  tax amount 
        from Part I, Line 3.