Solar & Battery Regulation & Incentive Programs

Income Tax Deduction for Energy-Efficient Products

Program Overview


Category:
Financial Incentive
Program Type:
Personal Tax Deduction
Implementing Sector:
State
State:
Virginia
Eligible Storage Technologies:
Fuel Cells using Non-Renewable Fuels, Clothes Washers, Dishwasher, Refrigerators/Freezers, Water Heaters, Furnaces, Boilers, Heat pumps, Air conditioners, Programmable Thermostats, Other EE
Incentive Amount:
20% of the sales tax paid by an individual
Maximum Incentive:
Not to exceed $500
Equipment Requirements:
Must meet federal Energy Star efficiency requirements
Administrator:
Virginia Department of Taxation
Applicable Sectors:
Residential
Start Date:
03/23/2007
Last Updated:
12/04/2020

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

Authorities

NameEnacted DateEffective DateExpired Date
Va. Code § 58.1-322.033/23/20073/23/2007