Water in the 2017 Virginia General Assembly: Coal Employment and Production Tax Credit

This is one of a series of posts on particular water-related bills in the 2017 Virginia General Assembly.  For an inventory of about 165 water-related bills in the 2017 General Assembly, please visit the Virginia Water Resources Research Center’s “Virginia Water Legislation” page, online at http://www.vwrrc.vt.edu/virginia-water-legislation/.  Each post includes a summary of the bill(s), their legislative status (in committee, passed, failed, etc.), and a list of hyperlinked headlines for news media items on the bill(s).  Information on the bills’ provisions and status is taken from the Virginia Legislative Information System (LIS), online at http://leg1.state.va.us/lis.htm.  Each bill number is hyperlinked to the LIS entry for that bill.

HB 2198, Coal tax; extends coal employment and production incentive tax credit and limits aggregate amount of credits that may be allocated or claimed.  This bill, sponsored by Del. Terry Kilgore (R-1st District), of Gate City, passed the House on February 2 and passed the Senate on February 10, but it was vetoed by the governor on February 21.  The veto will be taken up in the reconvened session on April 5, 2017.  According to the Virginia Legislative Information System summary, the bill as it passed the House would “reinstate the Virginia coal employment and production incentive tax credit.  The credit, which expired on July 1, 2016, could be earned on and after January 1, 2017, but before January 1, 2022. The bill limits the aggregate amount of credits that may be allocated or claimed for the coal employment and production incentive tax credit in each fiscal year to $7.3 million.  An electricity generator must file an application with the Department of Taxation each year to determine the amount of credits that it may claim or allocate, including credits earned in prior taxable years.  If the total amount of credits earned in a taxable year exceeds $7.3 million, the Department of Taxation shall apportion the credits on a pro rata basis.  The bill also extends the sunset date of the coalfield employment enhancement tax credit through taxable years beginning before January 1, 2022.”   SB 1470, sponsored by Sen. A. Benton Chafin (R-38th District), of Lebanon, is identical to HB 2198.  That bill passed the Senate on February 3 and the House on February 15, but was vetoed by the governor on March 13.  The veto will be taken up in the reconvened session on April 5, 2017.

Related News Media Item
Governor vetoes coal tax credit bill for third year in row, Roanoke Times, 2/22/17.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s