Bill > HB2086

This bill establishes a tax credit program for contractors who construct energy-efficient homes in Virginia during taxable years 2025-2029. Specifically, an eligible contractor (defined as a licensed contractor who constructs or produces qualifying homes) can claim a $1,000 tax credit for each qualified new energy efficient home and a $2,000 tax credit for each zero energy ready home. A qualified new energy efficient home must be located in Virginia, substantially completed during the tax year, and meet specific energy-saving requirements outlined in federal tax code. A zero energy ready home must meet similar criteria and be certified under the U.S. Department of Energy's zero energy ready home program. The bill limits contractors to claiming no more than $250,000 in total credits per tax year, and allows unused credits to be carried forward for up to five subsequent tax years. The Tax Commissioner, in collaboration with the Virginia Department of Energy, will develop guidelines for claiming these credits. This legislation aims to incentivize the construction of more energy-efficient residential buildings in the state by providing financial benefits to contractors who meet specific energy performance standards.

Budget and Finance

https://lis.virginia.gov/bill-details/20251/HB2086