Virginia · Recycling / Equipment · VA-REC-001
Recyclable Materials Processing Equipment Tax Credit
Publication revised September 24, 2026. Sourcebook page 266.
Credit amount / calculation
20% of qualifying machinery/equipment purchase price, subject to annual statewide cap/proration and Department of Environmental Quality certification.
Business fit and eligible activity
Potentially relevant to manufacturers producing products from recyclable material; current authorization runs through tax years beginning before 2027. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Illustrative business benefit
A sawmill invests $900,000 in qualifying production machinery. At 20%, the nominal credit is $180,000 before annual caps, tax-liability limits, carryforward rules, or negotiated adjustments. The company should isolate eligible machinery from buildings, vehicles, land, and other costs that the statute does not treat the same way.
Timing / first action
Check application or certification requirements before incurring the qualifying expense or beginning the qualifying activity. Page
Official sources
- Virginia Tax - Tax Credits (virginia.gov)
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