Schedule VP: Vanpool Credit (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Schedule VP reports qualifying shuttle van purchase and lease costs and calculates the Vanpool Credit. The credit equals 30% of qualifying costs for vans used in an employer-sponsored ridesharing program.
Who files this form
Schedule VP is used to claim the Massachusetts Vanpool Credit. A business corporation is eligible if it purchases or leases qualifying shuttle vans for an employer-sponsored ridesharing program in Massachusetts.
The vans must transport employees or students from their homes or public transportation facilities to a workplace or campus in Massachusetts. They must be used by the corporation in Massachusetts and located in Massachusetts on the last day of the corporation’s taxable year.
Vehicles that would be required even without the ridesharing program do not qualify. The credit equals 30% of qualifying purchase or lease costs.
What you'll need
Have the following information ready:
- The corporation’s name and federal identification number.
- A brief description of each qualifying van, including its make, model and registration number.
- The total purchase cost for purchased vans.
- The taxable year’s lease or contract payment costs for leased vans.
Use an additional sheet if needed. Additional details about the vans must be available upon request.
How to file
File electronically. Paper returns will not be accepted.
To complete Schedule VP:
- On line 1, describe each qualifying van. Report purchase costs in column a and the taxable year’s lease or contract payment costs in column b.
- On line 2, total the qualifying costs separately for each column.
- On line 3, add the two column totals from line 2.
- On line 4, enter the allowable current-year Vanpool Credit, which equals 30% of qualifying costs. Enter that amount on the appropriate line of the Credit Manager Schedule.
For questions about electronic filing, call 617-887-6367. See the Massachusetts electronic filing and payment requirements for more information.
Common mistakes
- Sending a paper return: The form says electronic filing is required and paper returns will not be accepted.
- Combining purchase and lease costs: The form requires these costs to be reported separately, with purchased costs in column a and leased costs in column b.
Questions people ask
What counts as a qualifying shuttle van?
It must be a highway vehicle with seating for at least seven adults, including the driver. At least 80% of its mileage must reasonably be expected to come from transporting students and employees. On average, at least half of its adult seating capacity must be occupied.
Who counts as an employee for this credit?
An employee is someone who works more than eight paid hours per week for an employer, or a full-time student at a college, university or other postsecondary educational institution who regularly commutes between home and campus.
Can operating expenses be included?
No. Only purchase or lease costs qualify. Insurance, maintenance, fuel, drivers’ salaries and other operating expenses do not qualify.
Which taxable year can the credit be claimed in?
For purchased vehicles, the credit may be taken only in the taxable year when the qualifying vehicles were acquired and placed in service. For leased vehicles, it may be taken in taxable years when a lease or contract payment is incurred.
Can the corporation also claim depreciation on a qualifying van?
Yes. However, the basis used to calculate depreciation must be reduced by the amount of the allowable credit.