Bill > HB2506

This bill introduces a tax credit program for energy-efficient homes in Virginia, designed to incentivize the construction and purchase of environmentally friendly residential properties. For taxable years 2025-2029, the bill allows either an eligible contractor (who constructs or produces the home) or an eligible purchaser (the first person buying the home) to claim a nonrefundable tax credit, but not both for the same home. The credit is $2,000 for a qualified new energy-efficient home that meets specific energy-saving requirements under federal law, and $4,000 for a zero energy ready home certified by the U.S. Department of Energy. An eligible contractor is limited to claiming no more than $500,000 in credits per taxable year, and if the credit amount exceeds the taxpayer's tax liability, the excess can be carried forward for up to five subsequent tax years. The bill defines key terms like "construction," "qualified new energy-efficient home," and "zero energy ready home," and requires the Tax Commissioner to develop guidelines for claiming the credit. This legislation aims to encourage the development and adoption of more energy-efficient housing in Virginia by providing financial incentives to builders and homebuyers.

Budget and Finance

https://lis.virginia.gov/bill-details/20251/HB2506