Virginia Application for Recycling Materials Processing Equipment

Application for Recycling Materials Processing Equipment
Form RMC - Application for Recycling Materials Processing Equipment Tax Credit
Virginia
Form RMC

Application for Recyclable Materials
Processing Equipment Tax Credit

Tax Year
___________

Submit this form by June 1.

This credit must be approved before being claimed on your return. See the instructions for details.
IMPORTANT: All applicants must apply for certification from the Department of Environmental Quality prior to
March 1. Please see the instructions for more details.
Part I – Taxpayer Information
Name

FEIN

Trading As/Business Name

NAICS Code

Street Address
City, State, ZIP Code

Email Address

Contact Name

Phone Number

Entity Type: (Check One)	

	 C Corporation	

	 Partnership	

	

	LLC	

	 Other

Fax Number

	 S Corporation	

Part II – Credit Calculation
1. Enter amount paid for machinery and equipment used:
(i)	 predominantly to manufacture, process, compound, or produce items of tangible
personal property from recyclable materials, or
(ii)	 predominantly in or on the premises of facilities that are predominantly engaged in
advanced recycling.............................................................................................................

.00

2. If you intend to capitalize machinery and equipment that qualifies for the credit, enter the
amount of any original total capitalized costs incurred in the year of purchase to make the
machinery and equipment operational.......................................................................................

.00

3. Total amount paid. Add Lines 1 and 2 and enter here..............................................................

.00

4. Total credit requested. Multiply Line 3 by 20% (0.2). Round to the nearest whole dollar........

.00

Part III – 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.
If a person other than the taxpayer prepares this application, such declaration is based on all information of which he or
she has knowledge.
Authorized Signature

Title

Printed Name
Preparer Name

Dept. of Taxation  2604045  Rev. 08/23

Date
Phone Number

Preparer Email Address

Preparer Phone Number

Instructions for Form RMC
Application for the Recyclable Materials Processing Equipment Tax Credit
General Information
The Recyclable Materials Tax Credit may be claimed against
individual and corporate income taxes for certain equipment
and machinery purchases. For taxable years beginning on
or after January 1, 2020, but before January 1, 2025, the
tax credit amount is equal to 20% of the purchase price paid
during the taxable year for:
(i)	 machinery and equipment used predominantly in or on
the premises of manufacturing facilities or plant units
which manufacture, process, compound, or produce
items of tangible personal property from recyclable
materials, within the Commonwealth, for sale and
(ii)	 machinery and equipment used predominantly in or
on the premises of facilities that are predominantly
engaged in advanced recycling.
The credit amount that may be claimed cannot exceed 40%
of the taxpayer’s Virginia income tax liability for the taxable
year in which the credit is being claimed. For purposes of
determining “purchase price paid,” the taxpayer may use
the original total capitalized cost of the machinery and
equipment, less capitalized interest.
The total amount of tax credits available to all taxpayers for
a fiscal year cannot exceed $2 million. If applications for this
credit exceed $2 million, 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.

Definitions
“Purchase price paid” consists of:
•	 The amount actually paid for machinery and equipment
that qualifies for the credit in the year of the purchase;
or
•	 If you intend to capitalize machinery and equipment
that qualifies for the credit, an amount equal to the
original total capitalized cost of the machinery and
equipment minus any capitalized interest related to
the machinery and equipment.
“Original total capitalized costs” include both the
purchase price of machinery or equipment that is capitalized
for federal income tax purposes, and any capitalized costs
incurred in the year of purchase to acquire or produce the

machinery or equipment. “Original total capitalized costs”
do not include costs that are incurred in a year other than
the year of purchase or costs that are not capitalized. When
determining the purchase price for machinery or equipment,
subtract any capitalized interest related to the purchase
from the original total capitalized cost of the machinery or
equipment.
“Advanced recycling” is the operation of a single-stream
or multi-stream recycling plant that converts waste materials
into new materials for resale by processing them and
breaking them down into their raw constituents. “Advanced
recycling” includes the operation of a materials recovery
facility or materials reclamation facility that receives,
separates, and prepares recyclable materials for sale to
end-user manufacturers.
IMPORTANT
All applicants must receive certification from the Department
of Environmental Quality (DEQ) prior to applying with the
Department of Taxation. All applications for certification must
be filed with DEQ by March 1. Please see Form 50‑11S and
accompanying instructions, available via the DEQ website,
www.deq.virginia.gov. For assistance with Form 50-11S,
call: (804) 698-4145.
All business taxpayers should be registered with the
Department of Taxation before completing Form RMC. 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 June 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.

When to Submit Application
Form RMC and any supporting documentation must be
completed and mailed to the Department of Taxation no
later than June 1. For any application received without a
postmark, the date received by the Department will be used
to determine if the application was received by June 1.

What to Enclose
To allow us to process this application, provide the following:
•	 Copies of certification of the machinery and equipment
from DEQ.
•	 Proof of purchase of certified machinery and
equipment, such as an invoice or receipt.
•	 Summary of all other capitalized cost to make the
machinery and equipment operational. This summary
should include a date of service, description, and cost.

Where to Submit Application

Pass-Through Entities

Submit Form RMC and any enclosures to the Department of
Taxation, ATTN: Tax Credit Unit, P.O. Box 715, Richmond,
VA 23218-0715 or fax it to (804) 774-3902.

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: 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.

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

Credit must be allocated among owners in proportion to
each owner’s percentage of ownership or participation in the
pass-through entity.

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 space provided on the form.

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.

What the Taxpayer Needs to Do

Where To Get Help

Upon receiving notification of the allowable credit amount,
taxpayers may claim the allowable credit amount on the
applicable Virginia income tax return. Taxpayers who do
not receive notification of allowable credit amounts before
their Virginia income tax return due date may file during
the extension period or file their regular return without the
credit and then file an amended tax return after receipt of
notification of the allowable credit amount. To claim the tax
credit, a corporation must file Schedule 500CR; an individual
must file Schedule CR; and a pass-through entity must file
Schedule 502ADJ.

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