Incentives for Virginians

This page lists grants, rebates, tax credits, tax deductions, and utility incentives available to encourage the adoption of energy efficiency measures and renewable/ alternative energy. The incentives may vary by sector, but in general there are programs for all types: residential customers, small and large businesses, and government agencies.

This list is organized by the category of incentive (energy efficiency, renewable energy, alternative fuels and vehicles, and research and development) and then by the organization offering the incentive: the Commonwealth of Virginia (grants, rebates, tax credits); the federal government (mostly tax credits and tax deductions); and the gas and electric utilities (demand response, load management, etc.). To get started, click on one of the categories below and look for incentive programs that apply to your sector: residential, commercial, industrial, or government. 

Energy Efficiency | Renewable Energy | Alternative Fuels, Vehicles and Transit | Research and Development


Additional Resources

How to Take Advantage of Tax Incentives to Help Lower Your Energy Costs (BAE Case Study on Developing Energy Management Program) Webinar  Find out what tax incentives are available and how to take advantage of them from the webinar recording.

Virginia Department of Mines, Minerals and Energy (DMME) webpage about American Recovery and Reinvestment Act (ARRA) funds to establish several new programs that support energy efficiency and renewable energy development

ENERGY STAR webpage listing federal incentives for energy efficiency.

The Alliance to Save Energy website explains the federal tax incentives for energy efficiency and also has many tips and resources to help you save energy.  

   Energy Efficiency and Energy Conservation

Virginia Incentives for Energy Efficiency and Energy Conservation

Energy Efficient Buildings Tax Exemption (Code of VA §58.1-3221.2)
Potential Applicants: Business, Industry, and Residents 

This statute allows any county, city, or town to exempt or partially exempt energy efficient buildings from local property taxes. Eligible buildings are those that:

  • exceed the energy efficiency standards prescribed in the Virginia Uniform Statewide Building Code by 30 percent, or
  • meets or exceeds performance standards of the Green Globes Green Building Rating System of the Green Building Initiative, or
  • meets or exceeds performance standards of the Leadership in Energy and Environmental Design (LEED) Green Building Rating System of the U.S. Green Building Council, or
  • meets or exceeds performance standards or guidelines under the EarthCraft House Program, or
  • is an Energy Star qualified home.

Localities offering exemptions: CharlottesvilleRoanokeSpotsylvania   



Weatherization Assistance Program
Potential Applicants: Low-income homeowners and renters
 

The Weatherization Assistance program provides funds to reduce the heating and cooling costs for low-income families and to ensure their health and safety.  The program provides repairs and improvements to home heating and cooling systems as well as providing for the installation of energy-saving measures in the house.

To see if you qualify for this program, check here. For a list of weatherization providers, click here.
For more information about this program, visit the Department of Housing and Community Development website or email Brett jackson at Brett.Jackson@dhcd.virginia.gov.


ENERGY STAR and Water Sense Sales Tax Holiday

The sales tax holiday will be a recurring event, beginning at 12:01 a.m. on the Friday before the second Monday in October of every year and ending at midnight on the Monday immediately following.  The 2011 holiday will take place Friday, October 7, 2011 through Monday, October 10, 2011.

During this period, consumers may purchase certain Energy Star qualified products exempt of the Retail Sales and Use Tax. The exempt items include: any dishwasher, clothes washer, air conditioner, ceiling fan, compact fluorescent light bulb, dehumidifier, programmable thermostat, or refrigerator, the energy efficiency of which has been designated by the United States Environmental Protection Agency and the United States Department of Energy as meeting or exceeding each such agency’s requirements under the Energy Star program. The exemption is also available for WaterSense qualified products containing a WaterSense label. In order to be eligible for the Energy Star or WaterSense sales tax holiday exemptions, products must cost $2,500 or less per item and be purchased for noncommercial home or personal use.

For information regarding this program, visit the Virginia Department of Taxation's website, click here.

 


NEXT STEP - Home Energy Efficiency Upgrade Savings for Hampton Roads Residents

Available to residents of Hampton Roads:  The NEXT STEP program provides homeowners with a free survey performed by a contractor to determine the energy efficiency of their home and, as applicable, helps the homeowner pay for upgrades to improve home efficiency and lower monthly bills.  Contact a NEXT STEP Qualified Contractor for an initial free energy assessment.  See the list of NEXT STEP Qualified Contractors click here.  If your home is capable of achieving a 15% or greater energy efficiency improvement, NEXT STEP might be able to help you pay for the upgrades.  NEXT STEP discounts are applied directly to the contractor's invoice for services and upgrades, which means there is no waiting for rebates or reimbursements.  Benefits include a 25% discount on the cost of having your home air sealed, duct sealed and insulated, a 5% discount of the cost of Energy Star Upgrades (not including appliances), installation of a free Energy Monitoring Device with a personal web interface, a Utility Supplied Energy Efficiency Kit containing a programmable thermostat, aerators, educational material, a window insulation kit, and low flow showerhead and more.  Check to following link to see if NEXT STEP is available in your jurisdiction: http://www.hrpdc.org/Jurisdictions.asp.

For more information on NEXT STEP, visit the program's website http://www.nextstepva.org/index.php or contact Leslie Holthoff at lholthoff@greenjobsalliance.org.     

 


Federal Incentives for Energy Efficiency and Energy Conservation 

Corporate Tax Deduction for Commercial Building Efficiency Extended!
Potential Applicants: Commercial, Government (deduction goes to designer), Construction

A tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. These tax deductions are available for systems placed in service from January 1, 2006 through December 31, 2013.

More information can be found on the ENERGY STAR Tax Deductions for Commercial Buildings page: http://www.energystar.gov/index.cfm?c=tax_credits.tx_comm_buildings


Corporate Tax Credit for the Construction of Energy Efficient New Homes
Potential Applicants: Construction

Home builders are eligible for a $2,000 tax credit for a new energy efficient home that achieves 50% energy savings for heating and cooling over the 2004 International Energy Conservation Code (IECC) and supplements. At least 1/5 of the energy savings must come from building envelope improvements. This credit also applies to contractors of manufactured homes conforming to Federal Manufactured Home Construction and Safety Standards.

There is also a $1,000 tax credit to the producer of a new manufactured home achieving 30% energy savings for heating and cooling over the 2004 IECC and supplements (at least 1/3 of the savings must come from building envelope improvements), or a manufactured home meeting the requirements established by EPA under the ENERGY STAR program.

These tax credits apply to new homes located in the United States whose construction is substantially completed after August 8, 2005 and that are acquired from the eligible contractor for use as a residence from January 1, 2006 through December 31, 2009.  


Personal Tax Credit for Home Improvements 
Potential Applicants: Homeowners who placed in service qualified energy saving home improvements between January 1, 2011, and December 31, 2016.

Home improvement tax credits are available for insulation, replacement windows, water heaters, certain high efficiency heating and cooling equipment, and biomass stoves. See chart on the ENERGY STAR website. The maximum total amount that can be claimed for all products placed in service in 2011 for most home improvements is 10% of cost up to $500 EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems that are not subject to this cap, and are in effect through 2016. If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.   Geothermal heat pumps, small wind turbines, and solar energy system may be eligible for a tax credit of 30% of the cost until December 31, 2016.  Fuel cells may be eligible of a tax credit of 30% of the cost, up to $500 per 0.5 kW of power capacity until December 31, 2016. 


Utilities/Private Incentives for Energy Efficiency and Energy Conservation

 

Load Management Programs (for electric water heaters and HVAC)
Potential Applicants: Customers of Franklin Municipal Power & Light, Northern Neck Electric Cooperative, or Northern Virginia Electric Cooperative

These programs aim to reduce the energy used during peak demand periods by installing a switch on water heaters and/or air conditioning systems to turn them off during peak times. Residential and non-residetial customers who participate receive incentives such as free hot water heater and HVAC repairs or evaluations, monthly credits on electric bills, and/or rebates towards the purchase of a efficient hot water heater. Incentives vary by utility.

For more information, click on the link for your utility below:
Franklin Municipal Power & Light's "Cycle and Save Program"
Northern Neck EC's Load Management Program 
Northern Virginia EC's Load Management Program 


Demand Response Program
Potential Applicants: Large commercial or industrial customers of Allegheny Power

Allegheny Power’s “Watt Watchers” initiative includes two energy efficiency programs for its large commercial and industrial customers: the Economic Load Response Program that offers financial incentives to customers who reduce their power consumption during periods of high electrical demand or prices, and the Interruptible Load Resource Program that pays customers if they are called to reduce electrical usage during system emergencies. Customers can achieve reductions by either utilizing on-site generation and/or reducing their electricity usage. 
 
Participating businesses are paid a percentage of the wholesale cost of power in return for reducing energy consumption, which will lower their overall energy costs. To qualify, customers must have the ability to reduce their electric demand by a minimum of 100 kilowatts (kW) per hour, and participants in the Interruptible Load Resource Program must agree to be available for up to 10 reductions per year.
For more information, visit Allegheny Power's Watt Watchers website. 
 

Commercial Energy Audits
Potential Applicants: Commercial, industrial, and government customers of Northern Virginia Electric Cooperative

The Northern Virginia Electric Cooperative offers free energy audits to commercial, industrial, or government customers. The service involves a general walk-through "energy survey" or, if applicable, a more detailed and comprehensive facility audit. For more information, contact NOVEC's Business Development & Energy Services Division at (703) 392-1604 or (703) 392-1763 or toll-free at 1-888-335-0500, extension 1604 or 1763, or via e-mail at commind@novec.com.


Programmable Thermostat Rebate
Potential Applicants: Customers of Charlottesville Gas

Homeowners or property owners who heat with gas are eligible for a rebate up to $100 toward the purchase and/or installation of the programmable thermostat. For more information, visit the Charlottesville Gas Thermostat Rebate Offer website. 


Dominion Virginia Power HVAC Rewards Program
Potential Applicants: Business customers of Dominion Virginia Power

This program provides rebates of between $17 and $40 per ton for the installation of new or the replacement of existing  PTAC and PTHP systems, unitary and split air conditioning units, air source heat pumps, water cooled chillers, and air cooled chillers. To qualify, the new unit must feature a rating that is greater than the current national minimum efficiency standards. The Dominion Virginia Power HVAC Rewards program requires the work be completed by a licensed contractor who has registered with its network or as a self installation.

For more information, visit Dominion Virginia Power's HVAC Rewards webpage.


Dominion Virginia Power Lighting Rewards Program
Potential Applicants: Business customers of Dominion Virginia Power

This program provides rebates on a per-fixture basis for the retrofit of existing lighting with more efficient lighting that may include:

  • Installing high-bay fluorescents and pulse start metal halide lamps for warehouses
  • Installing more efficient ballasts
  • Installing LED exit signs and occupancy sensors
  • Upgrading T12s to T8s
  • Replacing incandescent bulbs with CFLs

The Dominion Virginia Power Lighting Rewards program requires the work be completed by a licensed contractor who has registered with its network or as a self installation.

For more information, visit Dominion Virginia Power's Lighting Rewards webpage.


Dominion Virginia Lighting Program
Availability: The Lighting Program is offered at a variety of retailers. Look for the Dominion discount display in the lighting section to see if the program applies to your store.

Dominion has partnered with select retailers to offer in-store discounts for the purchase of more efficient compact fluorescent light (CFL) bulbs. When you buy qualifying ENERGY STAR® lighting from participating stores, you will receive an automatic discount from Dominion.

For more information, visit Dominion Virginia Power's Lighting Program webpage.


Warm Wise Business Savings Program 
Potential Applicants: Commercial Customers of Columbia Gas of Virginia

Columbia Gas of Virginia will provide cash rebates for certain energy saving upgrades. Rebates are given for the following:

  • Replacement of pre-rinse spray valves with qualifying low-flow (1.6 gallons or less) pre-rinse spray valves
  • Replacement of coin-op or laundromat clothes washers with qualifying ENERGY STAR high-efficiency washers (MEF 1.8 or more and WF 7.5 or less)
  • Installation of a new or replacement of an older hot water heater with a high efficiency gas storage, tankless, or direct contact water heater
  • Installation of a new or replacement of an older gas boiler with a high efficiency hot water or steam gas boiler
  • Installation of a new or replacement of an older furnace with a high efficiency gas furnace

To see the details on the program including the rebate amounts and efficiency requirements, visit Columbia Gas of Virginia's Warm Wise webpage.


Green Mortgages
Potential Recipients: Small businesses, homeowners refinancing, and soon-to-be homeowners
 
If your small business is looking for loans to retrofit facilities, purchase energy efficient equipment, utilize energy efficient construction, buy alternative fuel for vehicles, or to implement other efficient ideas, there maybe be help from the U.S. Small Business Administration (SBA). Although the SBA does not make loans, it does guarantee them. SBA loan programs 7(a) and CDC/504 could offer some assistance. For more information on green mortgages visit http://www.mortgageloan.com/environment/ and for information on SBA loan programs visit the SBA's webpage on loan programs.
 
For homeowner green mortgage information please see Energy Efficient Mortgages.

Additional Resources

Virginia Department of Mines, Minerals and Energy (DMME) webpage about American Recovery and Reinvestment Act (ARRA) funds to establish several new programs that support energy efficiency and renewable energy development

The Database for State Incentives for Renewables & Efficiency (DSIRE) tracks federal, Virginia, local, and utility incentives.

The Tax Incentives Assistance Project is designed to give consumers and businesses information they need to make use of the federal income tax incentives for energy efficient products and renewable energy technologies.  

   Renewable Energy

Virginia Incentives for Renewable Energy

Solar Energy Equipment Tax Exemption (Code of VA § 58.1-3661)
Potential Applicants: Business, Industry, and Residents

This statute allows any county, city, or town to exempt or partially exempt solar energy equipment from local property taxes. Eligible technologies include passive solar space heat, active solar water heat, active solar space heat, solar thermal electricity, and photovoltaics. Certified solar energy items are defined as any "property, including real and personal property, equipment, facilities, and devices which use solar energy that would otherwise require a conventional source of energy."

Localities offering exemptions: Albemarle, Alexandria, Charlottesville, Chesterfield, Dinwiddie, Fairfax County, Falls Church, Hampton, Hanover, Henrico, Isle of Wight, King and Queen, Loudoun, Lynchburg, Prince William, Pulaski, Roanoke, Spotsylvania, and Winchester

For more information contact Ken Jurman at 804-692-3222 or at email.  


Wood, Alternative Energy, or Cogeneration Tax Exemption (Code of VA § 58.1-3662)
Potential Applicants: Business and Industry

This statute allows any county, city, or town to exempt or partially exempt generating equipment that is used to convert from oil or natural gas to wood, wood waste, or any alternative energy source for manufacturing, or any cogeneration equipment, from local property taxes.

Localities offering exemptions: Dinwiddie, Henrico, Pulaski, and Winchester  


Certified Pollution Control Equipment and Facilities Tax Exemption (Code of VA § 58.1-3660)
Potential Applicants: Business and Industry

This statute allows any county, city, or town to exempt or partially exempt certified pollution control equipment and facilities, including equipment used to grind, chip, or mulch trees, tree stumps, underbrush, and other vegetative cover for reuse as a fuel, from local property taxes.

Localities offering exemptions: Alleghany, Amherst, City of Bedford, Bedford County, Campbell, Chesterfield, Cumberland, Danville, Dinwiddie, Franklin, Frederick, Front Royal, Giles, Grayson, Henrico, Hopewell, Isle of Wight, King William, Lynchburg, Manassas, Montgomergy, Newport News, Norfolk, Orange, Petersburg, Prince William, Pulaski, Radford, City of Richmond, Roanoke, Saint Paul, Salem, Shenandoah, Spotsylvania, Tazewell, Warren, Waynesboro, West Point, Winchester, Wytheville, and York 


Wind Power: The State-Based Anemometer Loan Program
Potential Applicants: Virginia landowners

The State-Based Anemometer Loan Program provides Virginia landowners an opportunity to quantify their wind resources with the objective to spur the development and use of wind energy throughout the state. Under the program grant, JMU received ten 20-meter anemometer towers with instrumentation. Each tower takes one year of measurement on-site and then is relocated to a new site over the span of three years. This is meant to obtain data from thirty locations throughout the state. JMU also owns a 50-meter tower and will soon own a 40-meter tower as additions to the program. The data obtained from the towers is reported to the borrowers and is used by Virginia and NREL to validate wind resource models.  JMU is responsible for receiving applications of interested participants in the program, selecting which sites are most appropriate for the wind energy study, distributing and installating the anemometers, and gathering and processing the data.

Link to Anemometer Loan Program application.
Contact Patrick Wilson for more information: 540-568-8754 or at email.  


Solar Photovoltaic Manufacturing Incentive Grant Program (Code of Virginia § 45.1-392)
Potential Applicants: Businesses that manufacture photovoltaic panels in Virginia

This is a performance-based incentive designed to encourage the product development and manufacture of a high-technology, renewable energy source in Virginia. Any manufacturer who sells solar photovoltaic panels manufactured in Virginia is entitled to receive an annual grant of up to 75 cents per watt of the rated capacity of panels sold.

For more information contact Ken Jurman at 804-692-3222 or at email.  


Federal Incentives for Renewable Energy (from the DSIRE website) 

Department of Treasury Renewable/ On-site Power Grants
Potential Applicants: Commercial, Industrial, and Utilities

In lieu of the Investment Tax Credit or the Production Tax Credit (see below) for certain renewable energy or on-site power generation technologies. The grant is

  • 30% of the equipment cost of solar thermal, solar photovoltaic, fuel cells, or small wind (up to 100 kW) and
  • 10% of the costs of geothermal heat pumps, microturbines, and combined heat and power (CHP) systems
  • 10% of the basis or the property for landfill gas facilities, biomass facilities, qualified hydroelectric facilities, geothermal energy facilities, municipal solid waste facilities, biogas facilities, and marine and hydrokinetic renewable energy facilities

The grants are available for eligible property placed in service in 2009 and 2010.  See the U.S. Department of Treasury website for guidance.


Business Energy Investment Tax Credit for Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, and Photovoltaics
Potential Applicants: Commercial, Industrial, and Utilities

The credit is equal to 30% of expenditures, with no maximum credit limit stated. Eligible solar energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. (Passive solar systems and solar pool-heating systems are not eligible.) Hybrid solar lighting systems are those that use solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight.  
 
Read the Solar Energy Industries Association's Investment Tax Credit information.


Business Energy Investment Tax Credit for Fuel Cells
Potential Applicants: Commercial, Industrial, and Utilities

The credit is equal to 30% of expenditures, with no maximum credit limit stated. The credit for fuel cells is capped at $1,500 per 0.5 kilowatt (kW) of capacity (the credit for fuel cells placed into service on or before October 3, 2008, was capped at $500 per 0.5 kW). Eligible property includes fuel cells with a minimum capacity of 0.5 kW that have an electricity-only generation efficiency of 30% or higher.


Business Energy Investment Tax Credit for Small Wind Turbines
Potential Applicants: Commercial, Industrial, and Utilities

Corporate tax credit on federal income tax equal to 30% of expenditures, with no maximum for systems placed in service after December 31, 2008 (from October 3, 2008 to December 31, 2008 the maximum credit was $4,000). Eligible small wind property includes wind turbines up to 100 kW in capacity.


Business Energy Investment Tax Credit for Geothermal Systems
Potential Applicants: Commercial, Industrial, and Utilities

The credit is equal to 10% of expenditures, with no maximum credit limit stated. Eligible geothermal energy property includes geothermal heat pumps and equipment used to produce, distribute or use energy derived from a geothermal deposit. For electricity produced by geothermal power, equipment qualifies only up to, but not including, the electric transmission stage. For geothermal heat pumps, this credit applies to eligible property placed into service after October 3, 2008.


Business Energy Investment Tax Credit for Microturbines
Potential Applicants: Commercial, Industrial, and Utilities

The credit is equal to 10% of expenditures, with no maximum credit limit stated (explicitly). The credit for microturbines is capped at $200 per kW of capacity. Eligible property includes microturbines up to two megawatts (MW) in capacity that have an electricity-only generation efficiency of 26% or higher. 


Business Energy Investment Tax Credit for Combined Heat and Power (CHP)
Potential Applicants: Commercial, Industrial, and Utilities

The credit is equal to 10% of expenditures, with no maximum limit stated. Eligible CHP property generally includes systems up to 50 MW in capacity that exceed 60% energy efficiency, subject to certain limitations and reductions for large systems. The efficiency requirement does not apply to CHP systems that use biomass for at least 90% of the system's energy source, but the credit may be reduced for less-efficient systems. This credit applies to eligible property placed into service after October 3, 2008.


Residential Renewable Energy Tax Credit for Solar Water Heating or Photovoltaic Systems
Potential Applicants: Homeowners who place qualified systems on a residence from January 1, 2006 to December 31, 2016

Tax credit on federal income tax for 30% of qualified expenditures on photovoltaic systems placed in service after December 31, 2008 with no maximum (maximum of $2000 for systems placed in service between January 1, 2006 and December 31, 2008). Photovoltaic systems must provide electricity for the residence.

Tax credit on federal income tax for 30% of qualified expenditures of solar water heating systems placed in service after December 31, 2008 with no maximum (maximum of $2000 for systems placed in service between January 1, 2006 and December 31, 2008). Solar hot water systems must provide at least half of the energy used by the system to heat the water and the equipment must be certified for performance by the Solar Rating Certification Corporation (SRCC). This tax credit is not available for expenses related to swimming pools and hot tubs.


Residential Renewable Energy Tax Credit for Fuel Cells
Potential Applicants: Homeowners who place qualified systems on a residence from January 1, 2006 to December 31, 2016

Maximum credit of $500 per half kilowatt (kW). The fuel cell must have a nameplate capacity of at least 0.5 kW of electricity using an electrochemical process and an electricity-only generation efficiency greater than 30%.  The home served by the system must be the taxpayer’s principal residence.


Residential Renewable Energy Tax Credit for Small Wind
Potential Applicants: Homeowners who place qualified systems on a residence from January 1, 2008 to December 31, 2016

Personal tax credit on federal income tax for 30% of qualified expenditures with no maximum for systems placed in service after December 31, 2008 (the cap on systems placed in service in 2008 was up to $500 per half kilowatt with a maximum of $4,000 total). 


Residential Renewable Energy Tax Credit for Geothermal Heat Pumps
Potential Applicants: Homeowners who place qualified systems on a residence from January 1, 2008 to December 31, 2016

Tax credit on federal income tax for 30% of qualified expenditures on systems placed in service after December 31, 2008 with no maximum (maximum of $2000 for systems placed in service between January 1, 2006 and December 31, 2008). The geothermal heat pump must meet the requirements of the ENERGY STAR program which are in effect that the time the installation is completed. 


USDA Rural Energy for America Program (REAP) - Grants
Potential Applicants: state and local government entities, tribal governments, land-grant colleges and universities, rural electric cooperatives and public power entities

REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of grants and loan guarantees. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012.  
 
Notice of Solicitation of Applications: energy audits and renewable energy development assistance projects for calendar year 2009:

Grants and loan guarantees may be used to purchase renewable energy systems (including systems that may be used to produce and sell electricity), and to make energy efficiency improvements. Eligible renewable energy projects include wind, solar, biomass and geothermal; and hydrogen derived from biomass or water using wind, solar or geothermal energy sources. REAP incentives are generally available to state government entities, local governments, tribal governments, land-grant colleges and universities, rural electric cooperatives and public power entities, and other entities, as determined by the USDA.

For more information, contact Laurette Tucker, USDA Rural Development, Culpeper Building, Suite 238, 1606 Santa Rosa Rd., Richmond, VA 23229, (804) 287-1594 or at email


Renewable Electricity Production Tax Credit
Potential Applicants: Commercial and Industrial

The federal Renewable Electricity Production Tax Credit (PTC) is a per-kilowatt-hour tax credit for electricity generated by qualified energy resources and sold by the taxpayer to an unrelated person during the taxable year. The energy resource must be placed in service according to the table below. The tax credit can generally be taken for 10 years after the facility was placed in service, with the following exceptions:

  • Open-loop biomass, geothermal, small irrigation hydro, landfill gas, and municipal solid waste combustion facilities are only eligible for the credit for a five-year period if they were placed into service between October 22, 2004, and August 8, 2005.  
  • Open-loop biomass facilities that use cellulosic waste may receive the credit for five years after they are placed in service, with the beginning date set no earlier than January 1, 2005.
Resource Type In Service Deadline Credit Amount
Wind December 31, 2012 2.1¢/kWh
Closed-loop Biomass December 31, 2013  2.1¢/kWh
Open-loop Biomass December 31, 2013 1.0¢/kWh
Geothermal Energy December 31, 2013 2.1¢/kWh
Landfill Gas December 31, 2013 1.0¢/kWh
Municipal Solid Waste December 31, 2013 1.0¢/kWh
Qualified Hydroelectric December 31, 2013 1.0¢/kWh
Marine and Hydrokinetic (150 kW or larger)* December 31, 2013 1.0¢/kWh
 

Utilities/Private Incentives for Renewable Energy

TVA Green Power Switch Generation Partners®
Potential Applicants: Residential or small commercial power customers served by Powell Valley Electric Cooperative

TVA will purchase 100 percent of the green power output at a rate of 15 cents per kilowatt-hour from a photovoltaic or wind generation source installed by a residential or small commercial power customer served by a participating distributor of TVA power. Residential users may also qualify for an additional $500 incentive to help offset start-up costs. Payment is made in the form of a credit issued by the local power distributor on the monthly power bill for the home or business where the generation system is located. Payments are guaranteed for 10 years from the date of the contract. Energy consumed at the home or business, whether it is generated at the site or delivered over the local power distribution system, is billed at the standard rate. All equipment must be in compliance with national standards and all applicable codes and be certified by a licensed electrician.

For more information or to sign up, visit the Green Power Switch website.  


     Alternative Fuels, Vehicles and Transit

Federal Incentives for Alternative Fuels, Vehicles and Transit

None at this time.


Virginia Incentives for Alternative Fuels, Vehicles, and Transit

Biofuels Production Incentive Grant Program (Code of Virginia § 45.1-394)
Potential Applicants: Producers of biodiesel or ethanol

A producer of neat biofuels commencing qualifying sales on or after January 1, 2007, shall be eligible to receive a biofuels production incentive grant in an amount equal to $0.10 for each gallon of neat biofuels sold by it in the calendar year beginning with calendar year 2007.


Reduction of personal property taxes and/or waiving license fees for "clean special fuel" vehicles (Code of Virginia § 58.1-3506)

Localities are authorized to reduce the personal property taxes, waive the license fees, or both for "motor vehicles which use clean special fuels as defined in § 46.2-749.3: As used in this section, 'clean special fuel' means any product or energy source used to propel a highway vehicle, the use of which, compared to conventional gasoline or reformulated gasoline, results in lower emissions of oxides of nitrogen, volatile organic compounds, carbon monoxide or particulates or any combination thereof. The term includes compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, hythane (a combination of compressed natural gas and hydrogen), and electricity."

Currently these local governments provide alternative fuel vehicle incentives:


Utilities/Private Incentives

Incentives for Research and Development

   
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Environmental Quality
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