2022 Instructions for Preparing Schedule 500MT
        Electric Cooperatives Minimum Tax and Credit Schedule

General Information

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 Instructions

Part I – Minimum Tax Computation                                 Line 10:  Subtotal. Subtract Line 9 from Line 8.
Line 1:  Enter the amount of gross receipts as certified by      Line 11:  Add Line 4 and Line 10.
        the State Corporation Commission.                        Line 12:  Tax. Enter the greater of Line 4 or Line 11. Enter 
                                                                         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 
        by the State Corporation Commission.                     Part III – Tax Credit Carryover Amount

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 
Line 4:  Minimum Tax – Subtract Line 3 from Line 2.                      enter the result. This is the credit amount available 
                                                                         for carry forward to subsequent tax years.
Part II – Tax Computation                                        Line 14:  Enter the amount of carryover credit from Part III, 
                                                                         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, 
        enter that amount on Line 12 and skip to Line 13         Line 16:  Enter the amount of credit used in the current year 
        to  compute  the  modified  net  income  tax  credit             from Line 7. 
        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 
Line 6:  Subtract Line 4 from Line 5.                                    years.
Line 7:  Enter the amount of credit available from Part III, 
        Line 17 of previous year’s Schedule 500MT (not           Part IV – Estimated Income Tax Carryover Amount
        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. 09/22