Clean-Fuel Vehicle Job Creation Tax Credit

July 13, 2021


This incentive has been expired and replaced with the Green Job Creation Tax Credit

Virginia offers companies a tax credit of $700 for each job created in (1) the manufacture of components for vehicles designed to operate on a clean special fuel, (2) the manufacture of components used to convert vehicles designed to operate on gasoline or diesel fuel to operate on clean special fuel, (3) the conversion of vehicles designed to operate on gasoline or diesel fuel to operate on clean special fuel, or (4) the manufacture of vehicles designed to operate on clean special fuel. This credit is taken in the taxable year that the job is created, and in each of the two succeeding years in which the job is continued. Any tax credit not used in the taxable year of job creation or continuation may be carried over for credit against the company's income tax for five years. According to Virginia law, "clean special fuels" means "all products or energy sources used to propel a highway vehicle which, when compared to conventional gasoline or reformulated gasoline, will result in lower emissions of oxides of nitrogen, volatile organic compounds, carbon monoxide or particulates or any combination thereof, and includes compressed natural gas, liquified natural gas, liquified petroleum gas, hydrogen, hythane (a combination of compressed natural gas and hydrogen) and electricity."

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Virginia
Incentive Type: Industry Recruitment/Support
Web Site:
Start Date:
Eligible Renewable/Other Technologies:
  • Renewable Fuel Vehicles
Incentive Amount: $700 per employee
Maximum Incentive: None


Name: Va. Code § 58.1-439.1
Effective Date: 1/1/96
Expiration Date: 1/1/07
Name: Va. Code § 58.1-2101


Name: Taxpayer Assistance - Virginia
Organization: Virginia Department of Taxation
Address: PO Box 1880
Richmond VA 23218-1880
Phone: (804) 367-8031

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.