Virginia House takes aim at coal industry tax credits
(The Center Square) – Legislation that would slash millions of dollars in coal subsidies has advanced in a Virginia House committee as lawmakers seek to push the state away from carbon-producing energy sources in favor of renewable energy.
House Bill 1899, sponsored by Del. Sally Hudson, D-Charlottesville, would end two coal tax credit programs: the Coal Employment and Production Incentive Tax Credit and the Coalfield Employment Enhancement Tax Credit. The legislation was advanced Wednesday by the House Committee on Finance, 13-9, vote with substantial support from Democrats and opposition from Republicans.
An amended version of the bill that passed the committee would prohibit the allocation of these credits beginning Jan. 1, 2022. Credits earned before that could be claimed with a limit of $1 million in carryover credits per taxable year.
According to a review by the Joint Legislative Audit and Review Commission, coal tax credits cost the state $21 million in gross domestic product and $5 million in personal income between the 2010 and 2018. Coal mining companies and electricity generators saved $291.5 million in income taxes from the program.
The commonwealth quickly has been moving away from coal mining and other carbon-producing energy sources. Legislation signed by Gov. Ralph Northam requires Dominion energy to produce 100% of its energy from renewable sources by 2045 and Appalachian Power to produce 100% of its energy from renewable sources by 2050. Lawmakers are considering bill to speed up that process.
Legislation to expand green energy grant programs to replace the carbon-producing energy sources also are advancing through the General Assembly.
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