Virginia FWV - Farm and Wineries Tax Credit Application

FWV - Farm and Wineries Tax Credit Application
Form FWV - Application for Farm Wineries and Vineyards Tax Credit
Virginia
Form FWV

Application for
Farm Wineries and Vineyards Tax Credit

Tax Year

___________

Submit this form by April 1.
This credit must be approved before being claimed on your return. See instructions for details.
Section I – Taxpayer Information
Business Name

FEIN / SSN

Trading As

Office Use Only

Street Address
City, State, ZIP Code

Email Address

Contact Name

Phone Number

Fax Number

Entity Type: (Check One)	

  Sole Proprietor	

  C Corporation	

  S Corporation

	

  Partnership	

 LLC	

  Other

Section II – Business Information
The above named business qualifies as a:

c Virginia farm winery — “Virginia farm winery” is defined as an establishment located in the Commonwealth that is
licensed as a Virginia farm winery pursuant to Va. Code § 4.1-206.1.

c Virginia vineyard — “Virginia vineyard” is defined as agricultural lands located in the Commonwealth consisting

of at least one contiguous acre dedicated to the growing of grapes that are used or are intended to be used in the
production of wine by a Virginia farm winery as well as any plants or other improvements thereon.

Section III – Credit Calculation
NOTE: Any expenses claimed as a federal deduction under IRC § 179 may not be included in the calculation of this credit.
1.

2.

Enter the total amount of qualified capital expenditures.
Enclose Schedule A with Form FWV giving the description and amount
of each qualified expenditure, date of purchase, and supplier. Retain the
receipts for your records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

.00

Total credit requested. Multiply Line 1 by 25% (.25).. . . . . . . . . . . . . . . . . . .

$

.00

Section IV – Declaration and Signature
I (we) the undersigned declare, under the penalties provided by law, that this form (including any accompanying schedules,
statements, and attachments) has been examined by me (us) and is, to the best of my (our) knowledge and belief, a true,
correct, and complete application, made in good faith pursuant to the income tax laws of the Commonwealth of Virginia.
Authorized Signature

Title

Date

Printed Name

Phone Number

Email Address

Fax Number

File Form FWV no later than April 1 for expenditures made during the preceding taxable year.
Va. Dept. of Taxation  3101030  Rev. 08/23

Form FWV
Schedule A

Farm Wineries and Vineyards
Tax Credit Schedule

Name as it Appears on Form FWV

Tax Year
___________
FEIN / SSN

Complete the below schedule if claiming the Farm Wineries and Vineyards Tax Credit. Copies of Schedule A can be
submitted if additional space is needed.
NOTE: Any expenses claimed as a federal deduction under IRC § 179 may not be included in the calculation of this credit.

Date of
Expenditure

Detailed Description of Expenditure

Supplier

Amount of
Expenditure
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00

Total Amount
of Expenditures $	

.00

Instructions for Form FWV
Application for Farm Wineries and Vineyards Tax Credit
General Information

Qualified Capital Expenditures

An individual and corporate income tax credit is available
for Virginia farm wineries and vineyards in an amount equal
to 25% of the cost of all qualified capital expenditures
made in connection with the establishment of new Virginia
farm wineries and vineyards and capital improvements
made to existing Virginia farm wineries and vineyards. The
purpose of this credit is to incentivize winery and vineyard
establishment and expansion in Virginia by lessening the
burden on Virginia vineyards and farm wineries.

“Qualified capital expenditures” means expenditures made
by the taxpayer for the purchase and/or installation of the
following:

Who May Apply?
Any Virginia vineyard or Virginia farm winery that has
qualified capital expenditures may apply for this tax credit.
A “Virginia vineyard” means agricultural lands located in
Virginia consisting of at least one contiguous acre dedicated
to the growing of grapes that are used or are intended to be
used in the production of wine by a Virginia farm winery as
well as any plants or other improvements located thereon.
A “Virginia farm winery” means an establishment located in
Virginia that is licensed as a Virginia farm winery pursuant
to Va. Code § 4.1-206.1. Licensed Virginia farm wineries
are authorized to manufacture wine containing 21% or less
of alcohol by volume and to sell, deliver, or ship wine in
closed containers to the following:
•	 The Virginia Alcoholic Beverage Control Board;
•	 Persons licensed to sell the wine at wholesale for the
purpose of resale; and
•	 Persons outside Virginia.
Additionally, licensed Virginia farm wineries may:
•	 Acquire and receive deliveries and shipments of wine
and sell and deliver or ship this wine to the Virginia
Alcoholic Beverage Control Board, persons licensed
to sell wine at wholesale for the purpose of resale, or
to persons outside Virginia,
•	 Operate a contract winemaking facility on the
premises of the licensee in accordance with Board
regulations,
•	 Store wine in bonded warehouses located on or off
the licensed premises upon permits issued by the
Virginia Alcoholic Beverage Control Board, and
•	 Sell wine at retail at the places of business designated
in the licenses, which may include no more than five
additional retail establishments of the licensee. Wine
may be sold at these business places for on-premises
consumption and in closed containers for off-premises
consumption, provided that any brand of wine not
owned by the farm winery licensee is purchased from
a wholesale wine licensee. In addition, wine may be
pre-mixed by the licensee to be served and sold for
on-premises consumption at these business places.

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Barrels
Bins
Bottling equipment
Capsuling equipment
Chemicals
Corkers
Crushers and destemmers
Dirt
Fermenters or other recognized fermentation devices
Fertilizer and soil amendments
Filters
Grape harvesters
Grape plants
Hoses
Irrigation equipment
Labeling equipment
Poles
Posts
Presses
Pumps
Refractometers
Refrigeration equipment
Seeders
Tanks
Tractors
Vats
Weeding and spraying equipment
Wine tanks
Wire

The total amount of tax credits available to all taxpayers
for a calendar year cannot exceed $250,000. If applications
for this credit exceed $250,000, the Department of Taxation
will allocate the credits on a pro rata basis. Any credit
amounts that exceed a taxpayer’s liability can be carried
forward for 10 years. Credits attributable to a partnership,
S corporation, or LLC will be allocated to the individual
partners, shareholders, or members in proportion to their
ownership or interest in the business entity.
Taxpayers cannot claim both this credit and a federal
deduction for the same expenses under IRC § 179.

Ineligible Expenditures
This credit may only be claimed for qualified capital
expenditures. Any expenditure not included in the list of
qualified capital expenditures is ineligible for this credit.

Such ineligible expenditures include utilities, service costs,
repair costs, and maintenance costs. Any supporting
documentation must clearly differentiate the costs of
qualified capital expenditures from ineligible expenditures.
To qualify for the credit, the capital expenditures must be
made in connection with the establishment of a new Virginia
farm winery or vineyard or capital improvements made to an
existing Virginia farm winery or vineyard.

Supporting Documentation

What to Expect from the Department
If the Department needs additional information the agency
will contact you by May 1 and you will have until May 15 to
respond. If you have not received acknowledgement of your
application by May 31, call (804) 786-2992.
The Department will issue the credit by June 30. If you have
not received your credit certification by July 15, please call
(804) 786-2992.

•	 Proof of purchase, such as an invoice or receipt.

NOTE: By providing an email address on the form, the
taxpayer consents to allow emailed communications from
the Virginia Department of Taxation related to this tax credit
application. If the taxpayer does not wish to receive electronic
communications, do not enter an email address in the spaces
provided on the form.

•	 Proof of payment, such as a canceled check, bank
statement, or credit card statement.

What Does the Taxpayer Need to Do?

You must retain a copy of any supporting documentation
of these expenditures for your records. Supporting
documentation may include any of the following:

Issuance of Tax Credits
The Department is responsible for administering the Farm
Wineries and Vineyards Tax Credit. Because this credit is
subject to an annual $250,000 cap, taxpayers must apply for
this credit each year. To apply for the credit, taxpayers must
submit Form FWV at the beginning of each calendar year
for qualified capital expenditures made during the preceding
taxable year. If the amount of tax credit applications exceeds
the $250,000 maximum, the Department will allocate all
credits on a pro rata basis. Once all credit applications have
been received, the Department will issue credit certificates
indicating the amount of credit that each taxpayer may claim
on its annual tax return.
Any allocated credit amounts that exceed a taxpayer’s liability
can be carried forward for 10 years. Credits attributable to
a partnership, S corporation, or LLC will be allocated to the
individual partners, shareholders, or members in proportion
to their ownership or interest in the business entity.

When to Submit Application
Form FWV and any attachments must be completed and
mailed no later than April 1 to claim expenditures for the
preceding taxable year.
For any application received without a postmark, the date
received by the Department will be used to determine if the
application was received by the filing deadline.

Where to Submit Application
Submit Form FWV and any enclosures to the Virginia
Department of Taxation, ATTN: Tax Credit Unit, P.O. Box
715, Richmond, VA 23218-0715 or fax it to (804) 774-3902.
Please do not do both.

Upon receiving notification of the allowable credit amount,
taxpayers may claim the allowable credit amount on the
applicable Virginia income tax return and compute any
carryover credit amount.
IMPORTANT: All business taxpayers should be registered
with the Department before completing Form FWV. If you are
not registered, complete Form R-1.
If the tax return upon which this credit will be claimed is due on
or before May 1, you may need to either submit an extension
payment for any tax due or file an amended return once you
have received the credit certification.

Pass-Through Entities
Each pass-through entity must file Form TCA with the
Department when allocating this credit to its participants.
Form TCA should be filed within 30 days after the credit is
granted, but at least 90 days prior to the participants filing their
income tax returns. Failure to file Form TCA may result in the
credit claim being disallowed and/or a delay in processing
the participant’s return. Form TCA should be sent to the
Virginia Department of Taxation, ATTN: Tax Credit Unit,
P.O. Box 715, Richmond, VA 23218‑0715 or you may fax
it to (804) 774-3902. Do not do both.
Credits must be allocated among owners in proportion to
each owner’s percentage of ownership or participation in
the pass-through entity.
All pass-through entities distributing this credit to its
participants, including owners, shareholders, partners, or
members must give each such participant a Schedule VK‑1,
Owner’s Share of Income and Virginia Modifications and
Credits.

Where to Get Help
Write to the Virginia Department of Taxation, ATTN: Tax
Credit Unit, P. O. Box 715, Richmond, VA 23218-0715 or
call (804) 786‑2992.