DEQ Recycling Tax Credit: Are You Taking Advantage of this Opportunity?

Are you looking to upgrade your facilities? Would you like to incorporate more recycled materials in your mixes? Do you want to reduce your company’s carbon footprint? And just as important, do you want assistance in making these investments in your company? Fortunately for you, the Department of Environmental Quality offers the Tax Credit for Recycling Equipment Certification program. As stated on their website:

“The tax credit is equal to 20% of the original total capitalized cost of the purchase price for machinery and equipment for processing recyclable materials, and the total credit allowed cannot exceed 40% of the Virginia income tax liability in any taxable year. Also, you can carry over the unused amount of the credit for the next 10 years.”

This program aims to use material that may have otherwise gone to landfills and diverts that waste stream into new products. Common materials diverted and used in new asphalt materials are millings, shingles, tires, paper, and plastics. With asphalt being the most recycled material globally, equipment that increases the ability to use these diverted waste stream materials may be eligible for certification and receive the tax credit from the Department of Taxation.

Here is an example of the equipment that may be eligible for the tax credit: RAP Bins, RAS Bins, Fiber Feed Machines, High Recycle Capacity Drums and RAP Crushing and Screen Systems. Please note, this equipment must be certified for each facility based on the final use by DEQ.

Along with the Tax Incentive program for Recycling Equipment, DEQ has programs for Pollution Control Equipment and Facilities, Property Tax Exemptions for Recycling Equipment, Facilities and Devices, and Waste Motor Oil Burning Equipment.

To learn more about these programs, feel free to contact VAA or the DEQ Program Manager Sanjay Thirunagari. He can discuss your specific situation and determine what will most benefit your facility.

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