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 increased the amount of the credit, imposed an annual credit cap, and amended certain credit qualification requirements.
The legislation required Virginia Tax, in consultation with the Department of Environmental Quality, to adopt guidelines to implement the provisions of the legislation.