If you conducted business or earned income in Virginia, you may be subject to Virginia state taxes. If this applies to you, here are the key tax deadlines and credit application details for Virginia in 2024.
In Virginia, businesses aiming to claim the R&D tax credit must complete and receive approval for an application.
The deadlines for filing the Research and Development Credits are aligned with the state's income tax filing deadlines for different business entities.
In Virginia, you may:
File your taxes online with any approved software.
Free file options: Virginia state approved software
When filing by mail, ensure that your documents are postmarked by the due date.
Federal filing is not required.
Amendments are not allowed.
Note: There are 2 separate R&D forms for Virginia.
If you had $5 million or less in qualified R&D expenses during the year.
Use Form RDC (Research and Development)
If you had more than $5 million in qualified expenses
Use Form MRD (Major Research and Development)
Application Information
Virginia's R&D tax credit program requires the filing and approval of an application to claim the credit.
Here is how you can apply
Here is how you can apply
Important Note:
The RDC and MRD tax credits both require certification from the Tax Credit Unit in order to be claimed on your tax return. After reviewing the application, a letter will be sent certifying the credit.
RDC - Research and Development
Complete Form RDC and submit it with supporting documents by September 1
There are 2 options to calculate the credit
MRD - Major Research and Development
Complete Form MRD and submit it with supporting documents by September 1
Use the following spreadsheet
When applying, taxpayers are required to provide information including:
The number of full-time employees employed by the taxpayer in the Commonwealth during the taxable year for which the credit is sought.
The taxpayer's sector or sectors according to the 2012 edition of the North American Industry Classification System (NAICS) as published by the United States Census Bureau.
A brief description of the area, discipline, or field of Virginia qualified research performed by the taxpayer.
The total gross receipts or anticipated total gross receipts of the taxpayer for the taxable year for which the credit is sought.
Whether the Virginia qualified research was conducted in conjunction with a Virginia public or private college or university.
The taxpayer will NOT be eligible if research is conducted in the Commonwealth on human cells or tissue derived from induced abortions or from stem cells obtained from human embryos. The foregoing provision shall NOT apply to research conducted using stem cells other than embryonic stem cells.
Overview, Eligibility, Limitations, and Allocation Cap
Overview, Eligibility, Limitations, and Allocation Cap
Research and Development Tax Credit
Virginia allows a refundable individual and corporate income tax credit for conducting qualified research and development in Virginia, to the extent a taxpayer's Virginia qualified R&D expenses (QREs) exceed a base amount.
Eligible Entities
C-Corporations, S-Corporations, LLCs, Partnerships
RDC - Research and Development
RDC - Research and Development
$5 million or less in qualified R&D expenses
Virginia allows a refundable income tax credit for individuals and businesses for qualified research and development expenses.
Effective for taxable years beginning on or after January 1, 2016, the tax credit amounts are:
15% of the first $300,000 in Virginia qualified research and development expenses, or
20% of the first $300,000 of Virginia qualified research and development expenses if the research was conducted in conjunction with a Virginia public or private college or university, to the extent the expenses exceed a base amount.
Credit Carryforward
Any unused credit for the taxable year in which it was first allowed may be carried forward and applied against the taxpayer's income taxes for the next 10 succeeding taxable years, or until the total amount of the credit has been utilized, whichever comes first.
The research credit is refundable.
Credit Limitations
Any taxpayer who claims the tax credit for Virginia qualified research and development expenses pursuant to this section shall not use such expenses as the basis for claiming any other credit provided under the Code of Virginia.
Allocation Cap
There is a $7 million cap on the total amount of credits allowed in any fiscal year.
MRD - Major Research and Development
MRD - Major Research and Development
$5 million or more in qualified R&D expenses
Virginia allows a refundable income tax credit for individuals and businesses for qualified research and development expenses.
Effective for taxable years beginning on or after January 1, 2016, the tax credit amounts are:
10% of the difference between the Virginia qualified research and development expenses paid or incurred by the taxpayer during the taxable year, and
50% of the average Virginia qualified research and development expenses paid or incurred by the taxpayer for the 3 taxable years immediately preceding the taxable year for which the credit is being determined.
If the taxpayer didn't pay or incur Virginia qualified research and development expenses in any 1 of the 3 taxable years immediately preceding the taxable year for which the credit is being determined, the tax credit will equal 5% of the Virginia qualified research and development expenses paid or incurred by the taxpayer during the relevant taxable year.
Credit Carryforward
Any unused credit for the taxable year in which it was first allowed may be carried forward and applied against the taxpayer's income taxes for the next 10 succeeding taxable years, or until the total amount of the credit has been utilized, whichever comes first.
The research credit is refundable.
Credit Limitations
The amount of the credit claimed for the taxable year will not exceed 75% of the total amount of tax imposed by this chapter upon the taxpayer for the taxable year.
Allocation Cap
No more than $20 million in tax credits can be issued in any fiscal year.
If the approved applications for the tax credits allowed under this section exceed $20 million for any taxable year, Virginia Tax will apportion the credits by dividing $20 million by the total amount of tax credits approved, to determine the percentage of allowed tax credits each taxpayer will receive.
S-Corporation / Partnership
You must file in Virginia by April 15, 2025.
Applicable R&D Forms
Form RDC – Research and Development Tax Credit Application
Form MRD – Major Research and Development Tax Credit Application
File the above form with the following tax forms:
Form 502 – Pass-Through Entity Return of Income
or Form 502PTET – Pass-Through Entity Elective Income Tax Return
Form 504ADJ – Pass-Through Entity Schedule of Adjustments
Extension to File Taxes in Virginia for 2024
Taxes owed in Virginia for the tax year 2024 must be paid by April 15, 2025.
No separate extension filing is required in Virginia.
Virginia automatically grants a 6-month extension for both S-Corporation and Partnership tax returns.
S-Corporation: the extension deadline is October 15, 2025.
Partnership: the extension deadline is October 15, 2025.
Note that this extension pertains to the filing deadline, not the payment deadline.
Payment of taxes owed is still due by April 15, 2025.
C-Corporation
You must file in Virginia by April 15, 2025.
Applicable R&D Forms
Form RDC – Research and Development Tax Credit Application
Form MRD – Major Research and Development Tax Credit Application
File the above form with the following tax forms:
Form VA-500 – Virginia Corporation Income Tax Return
Form 500CR – Credit Computation Schedule for Corporation Returns
Extension to File Taxes in Virginia for 2024
Taxes owed in Virginia for the tax year 2024 must be paid by April 15, 2025.
No separate extension filing is required in Virginia.
Virginia automatically grants a 6-month extension for C-Corporation tax returns.
C-Corporation: the extension deadline is October 15, 2025.
Note that this extension pertains to the filing deadline, not the payment deadline.
Payment of taxes owed is still required by April 15, 2025.
Sole-Proprietorship
You must file in Virginia by May 1, 2025.
Applicable R&D Forms
Form RDC – Research and Development Tax Credit Application
Form MRD – Major Research and Development Tax Credit Application
File the above form with the following tax forms:
Form 760 – Residents Income Tax Return
Schedule CR – Credit Computation Schedule for Individual and Fiduciary Returns
Extension to File Taxes in Virginia for 2024
Taxes owed in Virginia for the tax year 2024 must be paid by May 1, 2025.
No separate extension filing is required in Virginia.
Virginia automatically grants a 6-month extension for individual tax returns.
Sole-Proprietorship: the extension deadline is November 1, 2025.
Note that this extension pertains to the filing deadline, not the payment deadline.
Payment of taxes owed is still required by May 1, 2025.
References
We strive to ensure the accuracy of the information on this page, but it is not intended as tax or legal advice. Please use your own professional judgment and consult with a tax professional. Any advice you provide in connection with tax return preparation must comply in full with the requirements of IRS Circular 230.