Schedule VP: Vanpool Credit (2025)

Who files this form

Schedule VP is used to claim the 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. Each van must be used by the corporation in Massachusetts and be situated in Massachusetts on the last day of the corporation’s taxable year.

The credit does not cover vehicles that would be required even without the ridesharing program.

What you'll need

Have the following information ready for your 2025 Schedule VP:

• Name and federal identification number.
• A brief description of each qualifying shuttle van, including its make, model and registration number.
• Total purchase costs for purchased vans.
• The taxable year’s lease or contract payment costs for leased vans.

Use an additional sheet if necessary. Additional vehicle details must be available upon request.

How to file

File electronically. The form states that paper returns will not be accepted.

To complete Schedule VP:

1. On line 1, describe each qualifying van and include its make, model and registration number. Enter purchase costs in column a and the taxable year’s lease or contract payment costs in column b.
2. On line 2, total the qualifying costs separately for each column.
3. On line 3, add the two column totals from line 2.
4. On line 4, enter the allowable current-year Vanpool Credit. The credit equals 30% of qualifying purchase or lease costs. Enter the credit on the appropriate line of the Credit Manager Schedule.

For questions about electronic filing, call 617-887-6367. See the Massachusetts DOR electronic filing and payment requirements for more information.

Common mistakes

• Sending a paper return: The form is e-file only. Paper returns will not be accepted.
• Combining purchased and leased costs: Report purchased costs in column a and leased costs in column b. Keep them separate when entering costs and calculating the column totals.

Questions people ask

How much is the Vanpool Credit, and which costs count?

The credit equals 30% of qualifying shuttle van purchase or lease costs. Insurance, maintenance, fuel, drivers’ salaries and other operating expenses do not qualify.

What makes a vehicle 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, and at least half of its adult seating capacity must be occupied on average.

Who counts as an employee for this credit?

An individual qualifies if they work more than eight paid hours per week for an employer, or are a full-time student at a college, university or other postsecondary educational institution who regularly commutes between home and campus.

In which taxable year can the credit be claimed?

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

Can the corporation also claim depreciation on a qualifying van?

Yes. A depreciation deduction is allowed, but the basis used to calculate depreciation must be reduced by the allowable credit.

Official sources

• https://www.mass.gov/lists/dor-tax-forms-and-instructions