A resource allocation service can provide for the limited redelivery of events for processing using a set of virtual resources. A customer can provide code for execution, and the service can allocate resource instances configured to execute the code in response to various events. The processing for an event may not be completed by a single resource instance. When a resource instance is to end processing, the instance can capture state information to be returned as checkpoint data for the event. When the processing result is received, the service determines whether checkpoint data was included, which functions as a request for further processing. The service can then place the event data back in an event queue for redelivery and additional processing. A customer can specify a time limit or a retry limit such that an event can only undergo up to a maximum amount of processing before the event is failed.