Massachusetts Vanpool Credit

Vanpool Credit
Schedule VP
CAUTION:
This tax return must
be filed electronically.
Paper versions of this return
will not be accepted.
If you have questions about filing electronically,
contact us at 617-887-6367.
See https://www.mass.gov/info-details/dor-e-filing-and-paymentrequirements for further information about our electronic filing and
payment requirements.

Massachusetts Department of Revenue

Schedule VP
Vanpool Credit

2023

Name 	

Federal Identification number

Eligible costs. Briefly describe purchased or leased qualifying shuttle vans. Include
make, model and registration number. Additional details must be available upon request.
Use additional sheet if necessary. Do not combine purchased and leased Costs.
Purchased and leased Costs should be reported separately.

a.
	Purchased		

Costs
b.
Leased

1	

2	 Totals. Add all costs for each column . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3	 Total costs. Add line 2, col’s. a and b. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3	

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4	 Vanpool Credit allowable from current year. Enter amount on appropriate line of Credit Manager Schedule. . . . . . . . . . . . 4	

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The Vanpool Credit is a tax credit equal to 30% of the total purchase
or lease costs for shuttle vans used in an employer-sponsored ridesharing program.

Is Depreciation Allowed on Shuttle Vans?

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Yes. A depreciation deduction may be taken on any qualifying vehicle.
However, the basis upon which the depreciation is taken must be
reduced by the amount of the allowable credit.

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When Must a Corporation Take the Vanpool
Credit?

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Line Instructions

Line 1

• Is a full-time student at a college, university or other postsecondary
educational institution and who commutes between home and campus on a regular basis.

Total all taxable year qualifying costs for each column.

Line 3

Total all qualifying costs for the taxable year.

16
-9

What Is a Shuttle Van?

Line 2

Se

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A shuttle van is a highway vehicle which meets all of the following
requirements:
• It has a seating capacity of at least seven adults, including the
driver;
• At least 80% of its mileage can be reasonably expected to be from
the transportation of students and employees; and
• At least half of its adult seating capacity is occupied on average.

21
-9

• Works more than eight paid hours per week for an employer; or

Enter in line 1 the make, model and registration number of the qualifying shuttle van(s). For purchased vans, enter in col. a the total purchase cost. For leased vans, enter in col. b the taxable year’s lease
or contract payment costs.

d

Pa
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er

For purposes of the Vanpool Credit, an employee is an individual
who:

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in

For purchased vehicles, the Vanpool Credit may only be taken in
the taxable year in which the qualifying vehicles were acquired and
placed in service. For qualifying leased vehicles, the credit may be
taken in those taxable years in which a lease or contract payment is
incurred.

an

Who Is an Employee?

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ns

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no

Any business corporation which purchases or leases shuttle vans
as part of an employer-sponsored ridesharing program in Massachusetts is eligible for the Vanpool Credit. The credit does not apply
to the purchase or lease costs of vehicles which would be required
even if an employer-sponsored ridesharing program did not exist.
Qualifying shuttle vans must be used for transporting employees or
students from their homes or public transportation facilities to a place
of employment or to a campus in the Commonwealth. To qualify, a
shuttle van must be used by the corporation in Massachusetts and
situated in the Commonwealth on the last day of the corporation’s
taxable year.

tb

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Who Is Eligible to Take the Vanpool Credit?

n.

No. Only the costs of purchasing or leasing shuttle vans are eligible.
The credit does not apply to the cost of insurance, maintenance,
fuel, drivers’ salaries or other operating expenses.

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What Is the Vanpool Credit?

Are All Costs Eligible for the Credit?

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General Information