Virginia lawmakers have put forward House Bill 469 which would allow for a 10% State tax refund on the purchase of an electric vehicle up to a $3500 maximum.
That means the base Tesla Model 3 could cost $24,000 in Virginia after both the state incentive and the $7500 Federal tax incentive. Not a bad price for that caliber of vehicle.
Interesting in the below writing of the law is that the tax credit is available for 3 years so if you don’t hit $3500 in 2018, you can carry the credit forward to 2019 and 2020.
Virginia is not all gravy for EV owners however. The Virginia Auto Dealers association (as in other states with their own associations) has tried to block Tesla from opening stores in the state.
Virginia Governor, Democrat Terry McAuliffe was at the opening ceremony of the Richmond Tesla Store and conveyed his support for Tesla’s right to sell its cars directly to consumers.
He said (via Richmond):
“When this first came to me, there was no question that they ought to be able to sell their cars here. This is competition. It’s important for our environment. It reduces the carbon emissions, which is something that we all care about here in Virginia.”
The Bill still has to be voted on, but it would seem like Virginia is heading in the general direction of helping EV owners.
If you are wondering what kind of incentives your state offers, check out this handy map via Plugin America.
HOUSE BILL NO. 469 Offered January 10, 2018 Prefiled January 7, 2018 A BILL to amend the Code of Virginia by adding in Article 3 of Chapter 3 of Title 58.1 a section numbered 58.1-339.13, relating to electric vehicle tax credit.
———-Patron– Reid———-Committee Referral Pending———-Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Article 3 of Chapter 3 of Title 58.1 a section numbered 58.1-339.13 as follows:
§ 58.1-339.13. Electric vehicle tax credit.
A. As used in this section, “electric vehicle” means a new qualified plug-in electric drive motor vehicle, as defined in 26 U.S.C. § 30D, that (i) if purchased, is registered with the Virginia Department of Motor Vehicles within 30 days of purchase, or (ii) if leased, is leased for primary use in the Commonwealth. If 26 U.S.C. § 30D is repealed and no successor is enacted, then the reference in this section shall be given the meaning of such provision as it existed immediately prior to its repeal.
B. For taxable years beginning on and after January 1, 2018, a taxpayer shall be allowed a credit against any tax imposed under this article in the amount of 10 percent of the purchase price of an electric vehicle. If the taxpayer leases the electric vehicle, the purchase price shall equal the total price for the lease term. The credit shall not exceed $3,500. The credit shall be nonrefundable and if the credit exceeds the taxpayer’s tax liability under this article for the taxable year, he may carry forward any unused credit for the next three taxable years or until the full credit is used, whichever is sooner.
C. On or before December 1 of each year, the Department of Motor Vehicles shall notify the Department of the percentage of motor vehicles registered in Virginia that are electric vehicles. If such percentage is greater than or equal to 20 percent, the Department shall cease allowing tax credits under this section for the next and all subsequent taxable years. No tax credits shall be allowed under this section for taxable years beginning on and after January 1, 2023.
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