2006 Code of Virginia § 58.1-439.7 - Tax credit for purchase of machinery and equipment for processing recyclable materials

58.1-439.7. Tax credit for purchase of machinery and equipment forprocessing recyclable materials.

A. For taxable years beginning on and after January 1, 1999, but beforeJanuary 1, 2007, a corporation shall be allowed a credit against the taximposed pursuant to 58.1-400 in an amount equal to 10 percent of thepurchase price paid during the taxable year for machinery and equipment usedexclusively in or on the premises of manufacturing facilities or plant unitswhich manufacture, process, compound, or produce items of tangible personalproperty from recyclable materials, within the Commonwealth, for sale. Forpurposes of determining "purchase price paid" under this section, thetaxpayer may use the original total capitalized cost of such machinery andequipment, less capitalized interest. The Department of Environmental Qualityshall certify that such machinery and equipment are integral to the recyclingprocess before the corporation shall be entitled to the tax credit under thissection. The corporation shall also submit purchase receipts, invoices, andsuch other documentation as may be necessary to confirm the taxpayer'sstatement of purchase price paid, with the income tax return to verify theamount of purchase price paid for the recycling machinery and equipment.

B. The total credit allowed under this section in any taxable year shall notexceed 40 percent of the Virginia income tax liability of such taxpayer.

C. Any tax credit not used for the taxable year in which the purchase priceon recycling machinery and equipment was paid may be carried over for creditagainst the corporation's income taxes in the 10 succeeding taxable yearsuntil the total credit amount is used.

D. A taxpayer claiming the tax credit provided by 58.1-439.8 shall not beeligible for the tax credit provided by this section.

(1998, c. 253; 2001, c. 91; 2004, c. 611.)