Income Tax Deduction for Energy-Efficient Products

Summary

Taxpayers in Virginia may deduct from their taxable personal income an amount equal to 20% of the sales taxes paid for certain energy efficient equipment. The incentive is capped at $500. This incentive is available for the following equipment types:

• clothes washers
• room air conditioners
• dishwashers
• standard size refrigerators
• Any fuel cell that generates electricity using an electrochemical process, has an electricity-only generation efficiency greater than 35 percent, and has a generating capacity of at least two kilowatts 
• Any gas heat pump that has a coefficient of performance of at least 1.25 for heating and at least 0.70 for cooling
• Any electric heat pump hot water heater that yields an energy factor of at least 1.7
• Any electric heat pump that has a heating system performance factor of at least 8.0 and a cooling seasonal energy efficiency ratio of at least 13.0
• Any central air conditioner that has a cooling seasonal energy efficiency ratio of at least 13.5
• Any advanced gas or oil water heater that has an energy factor of at least 0.65 
• Any advanced oil-fired boiler with a minimum annual fuel-utilization rating of 85
• Any advanced oil-fired furnace with a minimum annual fuel-utilization rating of 85
• Programmable thermostats