Montana Free Printable  for 2017 Montana Recycling Credit/Deduction

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Recycling Credit/Deduction
Form RCYL

CLEAR FORM MONTANA RCYL Rev 04 16 2016 Recycle Credit/Deduction 15-32-603 and 15-32-610, MCA Name (as it appears on your Montana tax return) Social Security Number - - OR Federal Employer Identification Number - Part I. Partners in a Partnership or Shareholders of an S Corporation Enter your portion of the recycle credit here. See instructions. Business Name of Partnership or S Corporation ___________________________________________________ $_____________________ Federal Employer Identification Number - Part II. Qualifications 1. Was the qualifying machinery/equipment purchased on or after the first day of the current taxable year and before the last date of the current taxable year?................................................................................  Yes  No 2. Was the machinery/equipment located and operating in Montana on the last day of the taxable year for which the credit is claimed?..................................................................................................................  Yes  No If you answered No to questions 1 or 2, stop here. You do not qualify. 3. Is the machinery/equipment used in Montana to produce energy from reclaimed material?.....................  Yes  No If you answered Yes to question 3, stop here. You do not qualify. 4. Answer all of the following questions (a,b, and c). If you answer No to all of them, you do not qualify. a. Is the machinery/equipment used in Montana primarily for collections or processing reclaimed material?................................................................................................................................................. Yes  No b. Is the machinery/equipment used in Montana primarily for the manufacturing of finished products from reclaimed materials?......................................................................................................................  Yes  No c. Is the machinery/equipment used to treat soils contaminated by hazardous wastes?...........................  Yes  No If you do not qualify for the credit, go to Part V. Part III. For equipment used in Montana 1. Please explain in detail the equipment purchased and how it is used and include a copy of any pamphlets or other related supporting information_______________________________________________________________________ _______________________________________________________________________________________________ 2. Date of purchase_____________________________ (A copy of sales receipt is required.) 3. Cost of equipment (the total cost of equipment in Part III and Part IV may not exceed $1,000,000)......... $____________ 4. Computation of credit (multiply the cost of the equipment by the following percentages): Multiply the first $250,000 by 25% (0.25).................................................................... ____________ Multiply the next $250,000 by 15% (0.15)................................................................... ____________ Multiply the next $500,000 by 5% (0.05)..................................................................... ____________ Total Credit..................... $____________ SSN - - OR FEIN - Part IV. For qualifying specialized mobile equipment used in and out of Montana 1. Please explain in detail the equipment purchased and how it is used. Include a copy of any pamphlets or other related supporting information_____________________________________________________________________________ _______________________________________________________________________________________________ 2. Date of purchase_____________________________ (A copy of sales receipt is required.) 3. Cost of equipment (the total cost of equipment in Part III and Part IV may not exceed $1,000,000)......... $____________ 4. Number of days used in Montana.............................. _____________ 5. Total days used for the year...................................... _____________ 6. Divide amount on line 4 by amount on line 5............. _____________ 7. Computation of credit: Multiply the ratio on line 6 by 25% (0.25); then multiply the first $250,000 of line 3.... ____________ Multiply the ratio on line 6 by 15% (0.15); then multiply the next $250,000 of line 3... ____________ Multiply the ratio on line 6 by 5% (0.05); then multiply the next $500,000 of line 3..... ____________ Total Credit..................... $____________ 8. Add total credit from Part III to total credit from Part IV. This is your total credit available. Enter the amount from this line on your tax return. The amount of credit may not exceed your tax liability........ $____________ Where to Report Your Credit ►Individuals: Form 2, Schedule V ►C corporations: Form CIT, Schedule C ►S corporations: Form CLT-4S, Schedule II ►Partnerships: Form PR-1, Schedule II Part V. Deduction for purchase of recycled material 1. Type of recycled material purchased__________________________________________________________________ 2. Cost of recycled material...........................................................................................................................$____________ 3. Multiply the amount on line 2 by 10% (0.10). This is the amount of your additional deduction. Enter the amount from this line on your tax return..................................................................................... $____________ Where to Report Your Deduction ►Individuals: Form 2, Schedule II ►C corporations: Form CIT, page 3, line 3c ►S corporations: Form CLT-4S, page 1, line 16b ►Partnerships: Form PR-1, page 1, line 17b If you file your Montana tax return electronically, you do not need to mail this form to us unless we ask you for a copy. When you file electronically, you represent that you have retained the required documents in your tax records and will provide them upon the department’s request. Form RCYL Instructions Definitions Collect refers to the collection and delivery of reclaimed materials to a recycling or reclaimable materials processing facility. Machinery or equipment refers to property used in the collection or processing of reclaimable material or in the manufacturing of a product from reclaimed material. This property has a depreciable life of more than one year. Reclaimable material refers to material that still has useful physical or chemical properties after serving its original purpose and that a consumer, processor or manufacturer would normally treat as solid waste and dispose of. Recycled material refers to a substance that is produced from reclaimed material. The person who generated the reclaimed material that was collected, processed or used to manufacture a product may not claim the tax credit. How do I claim my credit when I am a partner or shareholder in a partnership or an S corporation that invested in the depreciable property used for recycling? Your partnership or S corporation will report the credit on its informational tax return and provide you with your portion of the credit on Montana Schedule K-1. If you are a partner, your portion of the credit is based on the same proportion you use to report your income or loss from the partnership for Montana tax purposes unless the partners have an agreement providing for a different allocation. If you are a shareholder, your portion of the credit is based on the pro rata share of the corporation’s cost of investing in the equipment. For example, if your business is an S corporation with four shareholders with equal ownership interest, each shareholder would be entitled to 25% of the total credit. Only a taxpayer that owns an interest either directly or through a pass-through entity, such as a partnership or S corporation, and is operating the equipment as the primary user on the last business day of the year, may claim the credit. Part I. Partners in a Partnership or Shareholders of an S Corporation If you complete Part I, do not complete Parts II, III or IV unless you have additional credit amounts that you did not receive as a distribution from a partnership or S corporation. If you are a partner or shareholder in more than one partnership or S corporation, you will need to complete a separate Form RCYL for each entity you are receiving a credit from. Parts II, III and IV. Qualifications and Credit Computation This credit is available to qualifying C corporations, S corporations, partnerships and individuals. What costs do I use to calculate my recycling credit? Use the costs of the investment that you have made in the qualifying equipment that you used to calculate your depreciation deduction for federal income tax purposes. The tax credit is available only for machinery and equipment that is depreciable (defined in IRS Code Section 167). The machinery and equipment must be used in Montana, primarily for collecting or processing reclaimable material for manufacturing finished products from reclaimed material or for treating soils contaminated by hazardous wastes. The basis for the credit is generally the cost of the property before any reduction you might have received from the seller by trading in old equipment. If, however, you received a previous credit on the equipment you traded in, the basis for the credit would be the cost of the property after factoring in the reduction you received on the trade-in. The basis includes the purchase price, transportation cost (if paid by the purchaser) and the installation cost before depreciation or other reductions. This credit does not increase or decrease the basis for tax purposes. Recycling machinery and equipment must be located and operating in Montana on the last day of the taxable year for which the credit is claimed. The machinery must be used to collect, process, separate, modify or treat solid waste so that it can be converted into a product that can be used in place of a raw material or be used to treat soils contaminated by hazardous wastes. This does not include transportation equipment unless it is specialized to the point that it can only be used to collect and process reclaimable material. If the credit exceeds my tax liability, can I carry any excess credit to another tax year? No. The credit is limited to the amount of the taxpayer’s individual or corporate income tax liability. Any excess credit is not refundable and cannot be carried back or forward to other tax years. Are there other limitations concerning the recycle credit? The Department of Revenue may disallow a credit resulting from a sale or lease when the overriding purpose of the transaction is not to collect or process reclaimable material or manufacture a product from reclaimed material. The credit may not be claimed for an investment in property used to produce energy from reclaimed material. What information do I have to include with my tax return when I claim this credit? Individuals and C corporations filing paper returns must include a completed Form RCYL. S corporations and partnerships filing paper information returns must include, in addition to a completed Form RCYL, a separate statement identifying each owner and their portion of the credit. In addition, if you are claiming a credit in Part III or Part IV, you will also need to provide a copy of the sales receipt, any pamphlets on the equipment purchased, and any other information regarding what the equipment is and how it is used in collecting, processing or manufacturing reclaimed material. Part V. Recycling Deduction Instructions You may deduct an additional amount equal to 10% of your expenditures for the purchase of recycled material that you could otherwise deduct as a business-related expense in Montana. The products have to contain recycled material at a level consistent with industry standards or with standards established by the federal Environmental Protection Agency (if those standards exist). Include a statement from the manufacturer or supplier stating the amount of recycled material contained in the material or product purchased. Administrative Rules of Montana: 42.4.2601 through 42.4.2605 Questions? Please call us toll free at (866) 859-2254 (in Helena, 444-6900).
Extracted from PDF file 2016-montana-form-rcyl.pdf, last modified August 2013

More about the Montana Form RCYL Corporate Income Tax Tax Credit TY 2016

This form is for corporations to get a deduction on the amount they pay for taxes for recycling.

We last updated the Recycling Credit/Deduction in January 2017, so this is the latest version of Form RCYL, fully updated for tax year 2016. You can download or print current or past-year PDFs of Form RCYL directly from TaxFormFinder. You can print other Montana tax forms here.

Other Montana Corporate Income Tax Forms:

TaxFormFinder has an additional 78 Montana income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form MSA Montana Medical Care Savings Account
Form INA-CT Affidavit of Inactivity for Corporations, Partnerships and Disregarded Entities
Form QEC Qualified Endowment Credit
Form RSCH Increase Research and Development Activities Credit
Schedule K-1 Beneficiary's Share of Income (Loss), deductions and credits

Download all MT tax forms View all 79 Montana Income Tax Forms


Form Sources:

Montana usually releases forms for the current tax year between January and April. We last updated Montana Form RCYL from the Department of Revenue in January 2017.

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Form RCYL is a Montana Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Montana Form RCYL

We have a total of six past-year versions of Form RCYL in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:



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