(error)Local Option- Renewable Energy Machinery and Tools Property Tax Exemption

April 09, 2015


HB 1297 enacted in March 2015 provides option for local governing body of any county, city, or town to impose a different tax on renewable energy generating machinery and tools than other normal use machinery. The rate of tax imposed must not exceed the general class of machinery and tools. 

Renewable energy means energy derived from sunlight, wind, falling water, biomass, sustainable or otherwise (definitions liberally constructed), energy from waste, landfill gas, municipal solid waste, wave motion, tides, or geothermal power and does not include energy derived from coal, oil, natural gas, or nuclear power. 

This rate of tax does not apply to machinery and tools used in generating renewable energy by qualifying co-generator or qualifying small power producer under Public Utility Regulatory Policies Act (PURPA), unless the rate of tax under this section would result in a lower property tax on such machinery and tools. 

Program Overview

Implementing Sector: State
Category: Regulatory Policy
State: Virginia
Incentive Type: Other Policy
Web Site: http://www.tax.virginia.gov/
Start Date:
Eligible Renewable/Other Technologies:
  • Geothermal Electric
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Hydroelectric
  • Municipal Solid Waste
  • Combined Heat & Power
  • Landfill Gas
  • Tidal
  • Wave
  • Anaerobic Digestion
  • Microturbines


Name: H 1297
Date Enacted: 03/17/2015


Organization: Virginia Department of Taxation
Address: Post Office Box 1115
Richmond VA 23218
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.