The Recycle Credit is a tax credit for individual and business taxpayers involved in collecting, manufacturing, and processing recycled materials.
The credit is available to individuals, corporations, partnerships, or small business corporations with qualifying expenditures during the tax year for which the credit is being claimed.
These expenditures include the cost of investments in depreciable equipment or machinery to the extent used in Montana to collect, process, or manufacture a product from reclaimed material. Depreciable property that treats soil contaminated by hazardous wastes is also eligible for the credit.
A taxpayer may claim a Recycle Credit of 25% on the first $250,000 of qualifying expenditures; an additional 15% credit on the subsequent $250,000; and 5% on up to $500,000 more spent on qualifying equipment. A credit cannot be claimed for investments in depreciable property in excess of $1 million. Thus, the total credit claimed (if a full $1,000,000 is spent on qualifying expenditures) may not exceed $125,000.
The Recycle Credit is nonrefundable and cannot be carried over to another tax year.
You may calculate this credit using the Recycle Credit/Deduction (Form RCYL).