Factsheet: Renewable energy property tax credit

Renewable energy property tax credit

Key Information
Description: 
Tax credits for placing into service renewable energy property: for taxable years beginning on or after January 1, 2015, but before January 1, 2020, any person who has constructed, purchased, or leased renewable energy property and placed such property in service in the Commonwealth during the taxable year shall be allowed a credit against the tax imposed under Article 10 (§ 58.1-400 et seq.), Chapter 25 (§ 58.1-2500 et seq.), or Article 2 (§ 58.1-2620 et seq.) of Chapter 26 in an amount equal to 35 percent of the installed cost of the renewable energy property. However, in no case shall the aggregate amount of credit allowed to each person for placing into service renewable energy property during the taxable year exceed the lesser of (i) 50 percent of the tax imposed upon the person under Article 10 (§ 58.1-400 et seq.), Chapter 25 (§ 58.1-2500 et seq.), or Article 2 (§ 58.1-2620 et seq.) of Chapter 26 for such year or (ii) $15,000. The credit shall only be allowed to the ultimate consumer or user of the renewable energy property.
Goal/Aim: 
Increase the share of renewable energy in electricity production. Support renewable energy projects.

Sector/Topic targeted:

Status: