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VA HB2408

VA HB2408
Vehicle emissions testing equipment; tax credit for certain vehicles and refueling property.


summary

Introduced
01/08/2025
In Committee
01/08/2025
Crossed Over
Passed
Dead
02/22/2025

Introduced Session

2025 Regular Session

Bill Summary

Tax credit for vehicle emissions testing equipment; certain vehicles and refueling property. Allows a tax credit equal to 10 percent of the purchase price of a vehicle with an internal combustion engine that is principally garaged in Virginia to a corporation, individual, or public service corporation. Current law allows such a credit only for certain clean-fuel vehicles. The provisions of the bill shall apply to taxable years beginning on and after January 1, 2025.

AI Summary

This bill modifies the existing tax credit provisions for vehicle emissions testing equipment and certain vehicles in Virginia, expanding the current tax credit to include a 10 percent credit for the purchase of vehicles with internal combustion engines that are principally garaged in Virginia, in addition to the existing credits for clean-fuel vehicles and emissions testing equipment. The bill allows corporations, individuals, and public service corporations to claim this credit against income or gross receipts taxes, with the ability to carry forward unused credits for up to five years. The tax credit includes three main components: (1) a credit based on deductions for clean-fuel vehicles and refueling property under Section 179A of the Internal Revenue Code, (2) a new 10 percent credit for internal combustion engine vehicles principally garaged in Virginia, and (3) a 20 percent credit for vehicle emissions testing equipment certified by the Department of Environmental Quality and located in specific geographic areas with enhanced vehicle emissions inspection requirements. These expanded tax credit provisions will take effect for taxable years beginning on or after January 1, 2025, providing an incentive for vehicle and equipment purchases that support emissions testing and vehicle efficiency.

Committee Categories

Budget and Finance

Sponsors (2)

Last Action

Left in Finance (on 02/04/2025)

bill text


bill summary

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bill summary

Document Type Source Location
State Bill Page https://lis.virginia.gov/bill-details/20251/HB2408
Fiscal Note/Analysis - Impact statement from TAX (HB2408) https://lis.blob.core.windows.net/files/1028412.PDF
BillText https://lis.virginia.gov/bill-details/20251/HB2408/text/HB2408
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