Bill Text: VA HB2506 | 2025 | Regular Session | Introduced
Bill Title: Income tax, state; energy-efficient homes tax credits.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-02-04 - Left in Finance [HB2506 Detail]
Download: Virginia-2025-HB2506-Introduced.html
2025 SESSION
INTRODUCED
25104389D
HOUSE BILL NO. 2506
Offered January 8, 2025
Prefiled January 8, 2025
A BILL to amend the Code of Virginia by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.12:13, relating to income tax; energy-efficient homes tax credits.
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Patron—Runion
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Committee Referral Pending
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Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.12:13 as follows:
§ 58.1-439.12:13. Energy-efficient homes tax credit.
A. For purposes of this section:
"Construction" includes substantial reconstruction and rehabilitation.
"Eligible contractor" means the person that (i) constructed the qualified new energy-efficient home or zero energy ready home and owned the home during its construction, or, (ii) in the case of a qualified new energy-efficient home that is a manufactured home, the person that produced the home and owned the home during its production.
"Eligible purchaser" means the first person that purchased a qualified new energy-efficient home or zero energy ready home from an eligible contractor.
"Qualified new energy-efficient home" means a dwelling unit located in the Commonwealth, the construction of which is completed during the taxable year, that meets the energy-saving requirements of 26 U.S.C. § 45L(c) and is not certified as a zero energy ready home under the Zero Energy Ready Home Program of the U.S. Department of Energy as such program was in effect on January 1, 2023 (or any successor program determined by the U.S. Secretary of Labor).
"Zero energy ready home" means a dwelling unit located in the Commonwealth, the construction of which is completed during the taxable year, that meets the energy-saving requirements of 26 U.S.C. § 45L(c) and is certified as a zero energy ready home under the Zero Energy Ready Home Program of the U.S. Department of Energy as such program was in effect on January 1, 2023 (or any successor program determined by the U.S. Secretary of Labor).
B. For taxable years beginning on and after January 1, 2025, but before January 1, 2030, either an eligible contractor or an eligible purchaser shall be allowed a nonrefundable credit against the tax levied pursuant to § 58.1-320 or 58.1-400 in an amount equal to $2,000 for the construction or purchase of a qualified new energy-efficient home. Either the eligible contractor or the eligible purchaser may claim the credit pursuant to this subsection for any single qualified new energy-efficient home, but not both.
C. For taxable years beginning on and after January 1, 2025, but before January 1, 2030, either an eligible contractor or an eligible purchaser shall be allowed a nonrefundable credit against the tax levied pursuant to § 58.1-320 or 58.1-400 in an amount equal to $4,000 for the construction or purchase of a zero energy ready home. Either the eligible contractor or the eligible purchaser may claim the credit pursuant to this subsection for any single zero energy ready home, but not both.
D. Only one credit may be claimed per dwelling unit pursuant to this section. The amount of the credit that may be claimed in any single taxable year shall not exceed the taxpayer's liability for taxes imposed by this chapter for that taxable year. If the amount of the credit allowed under this section exceeds the taxpayer's tax liability for the taxable year in which the credit is claimed, the amount that exceeds the tax liability may be carried over for credit against the income taxes of the taxpayer in the next five taxable years or until the total amount of the tax credit has been taken, whichever is sooner. However, an eligible contractor shall not be allowed to claim more than $500,000 pursuant to this section in any taxable year.
E. The Tax Commissioner shall develop guidelines for claiming the credit provided by this section. Such guidelines shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).
