RMC: Application for Recycling Materials Processing Equipment (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Form RMC is an application for the Recyclable Materials Processing Equipment Tax Credit. It reports qualifying machinery and equipment costs and calculates the credit requested. The credit must be approved before it can be claimed on a Virginia income tax return.
Who files this form
Use Form RMC to apply for Virginia’s Recyclable Materials Processing Equipment Tax Credit. The credit may be claimed against individual or corporate income taxes for qualifying machinery and equipment purchases.
Qualifying equipment includes machinery used predominantly:
- At Virginia manufacturing facilities or plant units that make tangible personal property from recyclable materials for sale.
- At facilities predominantly engaged in advanced recycling.
Applicants must receive Department of Environmental Quality (DEQ) certification before applying to the Department of Taxation. The credit must be approved before it is claimed on a tax return.
When it's due
The tax year 2024 version prints the following schedule, but does not specify the calendar year for these deadlines:
- March 1: The detailed instructions say DEQ certification applications must be filed by March 1. The front of the form says to apply prior to March 1.
- June 1: Submit Form RMC and supporting documents no later than June 1. If an application has no postmark, the Department uses its receipt date to determine timeliness.
- June 30: If you have not received acknowledgement of your application by this date, call (804) 786-2992.
- August 1: The Department will contact you by this date if it needs more information.
- August 15: Respond to that request for additional information by this date.
- September 1: The Department will issue the credit by this date.
- September 15: If you have not received your credit certification by this date, call (804) 786-2992.
What you'll need
Include these items with Form RMC:
- Copies of DEQ certification for the machinery and equipment.
- Proof of purchase of the certified machinery and equipment, such as invoices or receipts.
- A summary of all other capitalized costs to make the machinery and equipment operational, including the date of service, description, and cost.
The form also asks for taxpayer and business information, including the FEIN, NAICS code, address, entity type, and contact information. Complete the declaration with an authorized signature, title, date, printed name, and phone number.
How to file
- Get DEQ certification first. Use Form 50-11S and its instructions, available at www.deq.virginia.gov. For help with that form, call (804) 698-4145.
- Check business registration. Business taxpayers should be registered with the Department of Taxation before completing Form RMC. If not registered, complete Form R-1.
- Complete the credit calculation. Enter qualifying machinery and equipment purchases on Line 1 and qualifying capitalized costs to make the equipment operational on Line 2. Add them on Line 3. Multiply Line 3 by 20% and round to the nearest whole dollar for Line 4.
- Sign and submit Form RMC with its enclosures. Mail it to the address below or fax it to (804) 774-3902.
Department of Taxation
ATTN: Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715
After receiving notification of the allowable credit, claim it on the applicable Virginia return using Schedule 500CR for a corporation, Schedule CR for an individual, or Schedule 502ADJ for a pass-through entity.
A pass-through entity allocating the credit must also file Form TCA within 30 days after the credit is granted, but at least 90 days before participants file their returns. Send it to the same mailing address or fax number, not both. Give each participant a Schedule VK-1.
Common mistakes
- Claiming the credit before approval. Wait for notification of the allowable credit amount before claiming it.
- Applying to the Department of Taxation before receiving DEQ certification. DEQ certification must come first.
- Overlooking a tax return due before credit approval. If the return is due on or before June 1, you may need an extension payment for tax due or an amended return after certification. The instructions also allow filing during the extension period or filing without the credit and amending after approval.
- Entering an email address when you do not want email communications. Providing an email address means you consent to emailed communications about this application.
- Failing to file Form TCA when allocating a pass-through credit. This may cause the credit claim to be disallowed or delay processing of a participant’s return. Do not submit Form TCA by both mail and fax.
Questions people ask
How much is the credit for tax year 2024?
The credit is 20% of the qualifying purchase price paid during the taxable year. The amount claimed cannot exceed 40% of your Virginia income tax liability for the year in which you claim it. Total credits available to all taxpayers are limited to $2 million per fiscal year. If applications exceed that amount, credits are allocated proportionally.
Can capitalized costs count toward the purchase price?
Yes. You may use the original total capitalized cost of qualifying machinery and equipment, minus capitalized interest. Eligible capitalized costs include costs incurred in the purchase year to acquire or produce the equipment. Costs from other years and costs that are not capitalized are excluded.
Can unused credit be carried forward?
Credit amounts that exceed your tax liability can be carried forward for 10 years.
How is the credit divided among pass-through owners?
The credit must be allocated in proportion to each owner’s percentage of ownership or participation in the entity. The entity must file Form TCA and give each participant a Schedule VK-1.
Where can I get help with Form RMC?
Call the Department of Taxation at (804) 786-2992, or write to Department of Taxation, ATTN: Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-0715.