Description

Virginia offers companies a tax credit equal to 10% of the deduction allowed under Section 179A of the federal Internal Revenue Code for (1) purchases of clean-burning fuel vehicles used principally in-state, and (2) certain refueling property–related to clean-burning fuels–placed in service in Virginia. If the credit exceeds a company’s tax liability for year, the credit may be carried forward for up to five succeeding years. Businesses must qualify for the federal deduction in order to receive the Virginia credit.

According to federal law, the term “clean-burning fuel” includes natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, electricity, and “any other fuel at least 85 percent of which is one or more of the following: methanol, ethanol, any other alcohol, or ether.”