RMC: Application for Recycling Materials Processing Equipment (2025)
Virginia · Virginia Tax · Used for tax years 2025
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 you claim it on your Virginia income tax return.
Who files this form
Form RMC is for taxpayers applying 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 and equipment used predominantly:
- In Virginia manufacturing facilities or plant units that make products from recyclable materials for sale.
- In or on the premises of facilities predominantly engaged in advanced recycling.
Applicants must receive certification from the Department of Environmental Quality (DEQ) before applying to the Department of Taxation. The credit must be approved before it is claimed on a tax return.
When it's due
For the tax year 2025 application, the supplied text lists these dates without specifying their calendar year:
- March 1: DEQ certification applications are due. The front of the form says to apply prior to March 1, while the instructions included in the form say by March 1.
- June 1: Submit Form RMC and supporting documents no later than this date. If an application has no postmark, the Department uses the date it receives the application.
- June 30: If you have not received acknowledgment of your application by this date, call (804) 786-2992.
- August 1: The Department will contact you by this date if it needs additional information.
- August 15: Respond to a 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 each date of service, description, and cost.
The form also asks for taxpayer and business information, including the FEIN, NAICS code, entity type, address, and contact information. An authorized signature is required. Email addresses are optional.
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) 971-2132.
- Check your business registration. Business taxpayers should be registered with the Department of Taxation before completing Form RMC. Registration is available through Online Services for Businesses at www.tax.virginia.gov.
- Complete and sign Form RMC. Enter qualifying machinery and equipment costs on Line 1 and applicable capitalized costs on Line 2. Add them on Line 3, then multiply by 20% on Line 4 and round to the nearest whole dollar.
- Send the application and enclosures by mail to:
Department of Taxation
ATTN: Tax Credit Unit
P.O. Box 715
Richmond, VA 23218-0715
The form also allows fax submission to (804) 774-3902.
- Wait for approval before claiming the credit. Use Schedule 500CR for a corporation, Schedule CR for an individual, or Schedule 502ADJ for a pass-through entity.
Pass-through entities 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 income tax returns. Send Form TCA to the same address or fax number, but not both. Give each participant a Schedule VK-1.
Common mistakes
- Claiming the credit before approval. The form says approval is required before claiming it on a return.
- Applying to the Department of Taxation before receiving DEQ certification. Certification must come first.
- Overlooking a return due before credit approval. If the return is due on or before June 1, you may need to submit an extension payment for tax due or file an amended return after receiving certification.
- Entering an email address when you do not want emailed communications. Providing an email address gives consent to application-related emails from the Department.
- Missing Form TCA for a pass-through allocation. Failure to file it may cause the credit claim to be disallowed or delay 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 2025, the credit is 20% of the qualifying purchase price. The amount claimed cannot exceed 40% of your Virginia income tax liability for the year of the claim. Total credits available to all taxpayers are limited to $2 million per fiscal year, with proportional allocation if applications exceed that amount.
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. This includes qualifying capitalized acquisition or production costs incurred in the purchase year, but not costs from another year or costs that are not capitalized.
Can unused credit be carried forward?
Credit amounts that exceed a taxpayer’s liability can be carried forward for 10 years.
What if my return is due before I receive approval?
You may file during the extension period or file your regular return without the credit, then amend it after receiving notification of the allowable credit amount.
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.