During the 1990 Session, the Virginia General Assembly enacted Senate Bill 101 (1990 Acts of Assembly, Chapter 709), which established the Recyclable Materials Processing Equipment Tax Credit. This is an individual and corporate income tax credit for certain taxpayers that purchase machinery and equipment used on the premises of a manufacturing facility or plant unit which manufactures, processes, compounds, or produces items of tangible personal property from recyclable materials within Virginia for sale.
During the 2015 Session, the Virginia General Assembly enacted House Bill 1554 and Senate Bill 1205, which increase the amount of the credit, imposes an annual credit cap, and amended certain credit qualification requirements.
The legislation enacted during the 2015 Session required the Department, in consultation with the Department of Environmental Quality, to adopt guidelines to implement the provisions of such legislation. The Department is currently in the process of developing such guidelines.
House Bill 1554 (2015)
Senate Bill 1205 (2015)
Guideline Development Documents
- Final Recyclable Materials Processing Equipment Tax Credit Guidelines (PDF)
- Draft Recyclable Materials Processing Equipment Tax Credit Guidelines (PDF)
- Recyclable Materials Processing Equipment Tax Credit Workplan (PDF)