Clean-Fuel Vehicles and Refueling Property Credit

June 08, 2004


Virginia offers companies a tax credit equal to 10% of the deduction allowed under Section 179A of the federal Internal Revenue Code for (1) purchases of clean-burning fuel vehicles used principally in-state, and (2) certain refueling property--related to clean-burning fuels--placed in service in Virginia. If the credit exceeds a company's tax liability for year, the credit may be carried forward for up to five succeeding years. Businesses must qualify for the federal deduction in order to receive the Virginia credit. According to federal law, the term "clean-burning fuel" includes natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, electricity, and "any other fuel at least 85 percent of which is one or more of the following: methanol, ethanol, any other alcohol, or ether."

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Virginia
Incentive Type: Corporate Tax Credit
Web Site:
Administrator: Virginia Department of Taxation
Start Date:
Eligible Renewable/Other Technologies:
  • Renewable Fuel Vehicles
Incentive Amount: Varies


Name: Va. Code § 58.1-438.1
Name: 26 USCS § 179A


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.