{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-439.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-439.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-439.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-439.2.html"}],"law_id":54927,"edition_id":1,"section_id":54927,"structure_id":13153,"section_number":"58.1-439.2","catch_line":" Coalfield employment enhancement tax credit","history":"1995, c. 775; 1996, c. 1034; 1999, c. 971; 2000, cc. 91, 1066; 2006, cc. 788, 803; 2011, c. 851; 2012, cc. 309, 649; 2018, cc. 853, 855; 2021, Sp. Sess. I, cc. 532, 553, 554.","full_text":"A\n\nFor tax years beginning on and after January 1, 1996, but before January 1, 2017, and on and after January 1, 2018, but before January 1, 2022, any person who has an economic interest in coal mined in the Commonwealth shall be allowed a credit against the tax imposed by \u00a7 58.1-400 and any other tax imposed by the Commonwealth in accordance with the following:1\n\nFor metallurgical coal mined by underground methods, the credit amount shall be based on the seam thickness as follows:\n\t\t\t\tThe seam thickness shall be based on the weighted average isopach mapping of actual metallurgical coal thickness by mine as certified by a professional engineer. Copies of such certification shall be maintained by the person qualifying for the credit under this section for a period of three years after the credit is applied for and received and shall be available for inspection by the Department of Taxation. The Department of Energy is hereby authorized to audit all information upon which the isopach mapping is based.2\n\nFor metallurgical coal mined by surface mining methods, a credit in the amount of 40 cents ($0.40) per ton for coal sold in 1996, and each year thereafter.B\n\nIn addition to the credit allowed in subsection A, for tax years beginning on and after January 1, 1996, but before January 1, 2022, any person who is a producer of coalbed methane shall be allowed a credit in the amount of one cent ($0.01) per million BTUs of coalbed methane produced in the Commonwealth against the tax imposed by § 58.1-400 and any other tax imposed by the Commonwealth on such person.C\n\nFor purposes of this section, economic interest is the same as the economic ownership interest required by § 611 of the Internal Revenue Code which was in effect on December 31, 1977. A party who only receives an arm’s length royalty shall not be considered as having an economic interest in coal mined in the Commonwealth.D\n\nIf the credit exceeds the person’s state tax liability for the tax year, the excess shall be redeemable by the Tax Commissioner on behalf of the Commonwealth for 90 percent of the face value within 90 days after filing the return; however, for credit earned in tax years beginning on and after January 1, 2002, but before January 1, 2022, such excess shall be redeemable by the Tax Commissioner on behalf of the Commonwealth for 85 percent of the face value within 90 days after filing the return. The remaining 10 or 15 percent of the value of the credit being redeemed, as applicable for such tax year, shall be deposited by the Commissioner in a regional economic development fund administered by the Virginia Coalfield Economic Development Authority to be used for regional economic diversification in accordance with guidelines developed by the Virginia Coalfield Economic Development Authority and the Virginia Economic Development Partnership.E\n\nNo person may utilize more than one of the credits on a given ton of coal described in subsection A. No person may claim a credit pursuant to this section for any ton of coal for which a credit has been claimed under § 58.1-433.1 or 58.1-2626.1. Persons who qualify for the credit may not apply such credit to their tax returns prior to January 1, 1999, and only one year of credits shall be allowed annually beginning in 1999.F\n\nThe amount of credit allowed pursuant to subsection A shall be the amount of credit earned multiplied by the person’s employment factor. The person’s employment factor shall be the percentage obtained by dividing the total number of coal mining jobs of the person filing the return, including the jobs of the contract operators of such person, as reflected in the annual tonnage reports filed with the Department of Energy for the year in which the credit was earned by the total number of coal mining jobs of such persons or operators as reflected in the annual tonnage reports for the year immediately prior to the year in which the credit was earned. In no case shall the credit claimed exceed that amount set forth in subsection A.G\n\nThe tax credit allowed under this section shall be claimed in the third taxable year following the taxable year in which the credit was earned and allowed.H\n\nAs used in this section, “metallurgical coal” means bituminous coal used for the manufacture of iron and steel with calorific value of 14,000 BTUs or greater on a moisture and ash free basis.","order_by":null,"text":{"0":{"id":201502,"text":"For tax years beginning on and after January 1, 1996, but before January 1, 2017, and on and after January 1, 2018, but before January 1, 2022, any person who has an economic interest in coal mined in the Commonwealth shall be allowed a credit against the tax imposed by \u00a7 58.1-400 and any other tax imposed by the Commonwealth in accordance with the following:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":201503,"text":"For metallurgical coal mined by underground methods, the credit amount shall be based on the seam thickness as follows:\n\t\t\t\tThe seam thickness shall be based on the weighted average isopach mapping of actual metallurgical coal thickness by mine as certified by a professional engineer. Copies of such certification shall be maintained by the person qualifying for the credit under this section for a period of three years after the credit is applied for and received and shall be available for inspection by the Department of Taxation. The Department of Energy is hereby authorized to audit all information upon which the isopach mapping is based.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":201504,"text":"For metallurgical coal mined by surface mining methods, a credit in the amount of 40 cents ($0.40) per ton for coal sold in 1996, and each year thereafter.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":201505,"text":"In addition to the credit allowed in subsection A, for tax years beginning on and after January 1, 1996, but before January 1, 2022, any person who is a producer of coalbed methane shall be allowed a credit in the amount of one cent ($0.01) per million BTUs of coalbed methane produced in the Commonwealth against the tax imposed by § 58.1-400 and any other tax imposed by the Commonwealth on such person.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"C"},"4":{"id":201506,"text":"For purposes of this section, economic interest is the same as the economic ownership interest required by § 611 of the Internal Revenue Code which was in effect on December 31, 1977. A party who only receives an arm’s length royalty shall not be considered as having an economic interest in coal mined in the Commonwealth.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"5":{"id":201507,"text":"If the credit exceeds the person’s state tax liability for the tax year, the excess shall be redeemable by the Tax Commissioner on behalf of the Commonwealth for 90 percent of the face value within 90 days after filing the return; however, for credit earned in tax years beginning on and after January 1, 2002, but before January 1, 2022, such excess shall be redeemable by the Tax Commissioner on behalf of the Commonwealth for 85 percent of the face value within 90 days after filing the return. The remaining 10 or 15 percent of the value of the credit being redeemed, as applicable for such tax year, shall be deposited by the Commissioner in a regional economic development fund administered by the Virginia Coalfield Economic Development Authority to be used for regional economic diversification in accordance with guidelines developed by the Virginia Coalfield Economic Development Authority and the Virginia Economic Development Partnership.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"6":{"id":201508,"text":"No person may utilize more than one of the credits on a given ton of coal described in subsection A. No person may claim a credit pursuant to this section for any ton of coal for which a credit has been claimed under § 58.1-433.1 or 58.1-2626.1. Persons who qualify for the credit may not apply such credit to their tax returns prior to January 1, 1999, and only one year of credits shall be allowed annually beginning in 1999.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"7":{"id":201509,"text":"The amount of credit allowed pursuant to subsection A shall be the amount of credit earned multiplied by the person’s employment factor. The person’s employment factor shall be the percentage obtained by dividing the total number of coal mining jobs of the person filing the return, including the jobs of the contract operators of such person, as reflected in the annual tonnage reports filed with the Department of Energy for the year in which the credit was earned by the total number of coal mining jobs of such persons or operators as reflected in the annual tonnage reports for the year immediately prior to the year in which the credit was earned. In no case shall the credit claimed exceed that amount set forth in subsection A.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"8":{"id":201510,"text":"The tax credit allowed under this section shall be claimed in the third taxable year following the taxable year in which the credit was earned and allowed.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"9":{"id":201511,"text":"As used in this section, “metallurgical coal” means bituminous coal used for the manufacture of iron and steel with calorific value of 14,000 BTUs or greater on a moisture and ash free basis.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G"}},"ancestry":[{"id":13153,"edition_id":1,"name":"Tax Credits for Corporations","identifier":"13","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253497,"object_type":"structure","relational_id":13153,"identifier":"13","token":"58.1\/I\/3\/13","url":"\/58.1\/I\/3\/13\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":59349,"structure_id":13153,"section_number":"58.1-430","catch_line":"Repealed","url":"\/58.1-430\/","token":"58.1\/I\/3\/13\/58.1-430","metadata":false},{"id":79747,"structure_id":13153,"section_number":"58.1-431","catch_line":"Repealed","url":"\/58.1-431\/","token":"58.1\/I\/3\/13\/58.1-431","metadata":false},{"id":87213,"structure_id":13153,"section_number":"58.1-432","catch_line":"Tax credit for purchase of conservation tillage equipment","url":"\/58.1-432\/","token":"58.1\/I\/3\/13\/58.1-432","metadata":false},{"id":78377,"structure_id":13153,"section_number":"58.1-433","catch_line":"Expired","url":"\/58.1-433\/","token":"58.1\/I\/3\/13\/58.1-433","metadata":false},{"id":84600,"structure_id":13153,"section_number":"58.1-433.1","catch_line":"Virginia Coal Employment and Production Incentive Tax Credit","url":"\/58.1-433.1\/","token":"58.1\/I\/3\/13\/58.1-433.1","metadata":false},{"id":72145,"structure_id":13153,"section_number":"58.1-434","catch_line":"Repealed","url":"\/58.1-434\/","token":"58.1\/I\/3\/13\/58.1-434","metadata":false},{"id":62315,"structure_id":13153,"section_number":"58.1-436","catch_line":"Tax credit for purchase of conservation tillage and precision agricultural application equipment","url":"\/58.1-436\/","token":"58.1\/I\/3\/13\/58.1-436","metadata":false},{"id":62397,"structure_id":13153,"section_number":"58.1-437","catch_line":"Repealed","url":"\/58.1-437\/","token":"58.1\/I\/3\/13\/58.1-437","metadata":false},{"id":83316,"structure_id":13153,"section_number":"58.1-438","catch_line":"Not effective","url":"\/58.1-438\/","token":"58.1\/I\/3\/13\/58.1-438","metadata":false},{"id":56216,"structure_id":13153,"section_number":"58.1-438.1","catch_line":"Tax credit for vehicle emissions testing equipment, clean-fuel vehicles and certain refueling property","url":"\/58.1-438.1\/","token":"58.1\/I\/3\/13\/58.1-438.1","metadata":false},{"id":62311,"structure_id":13153,"section_number":"58.1-439","catch_line":"Major business facility job tax credit","url":"\/58.1-439\/","token":"58.1\/I\/3\/13\/58.1-439","metadata":false},{"id":63680,"structure_id":13153,"section_number":"58.1-439.1","catch_line":"Repealed","url":"\/58.1-439.1\/","token":"58.1\/I\/3\/13\/58.1-439.1","metadata":false},{"id":76474,"structure_id":13153,"section_number":"58.1-439.10","catch_line":"Tax credit for purchase of waste motor oil burning equipment","url":"\/58.1-439.10\/","token":"58.1\/I\/3\/13\/58.1-439.10","metadata":false},{"id":85121,"structure_id":13153,"section_number":"58.1-439.11","catch_line":"Repealed","url":"\/58.1-439.11\/","token":"58.1\/I\/3\/13\/58.1-439.11","metadata":false},{"id":59921,"structure_id":13153,"section_number":"58.1-439.12","catch_line":"Riparian forest buffer protection for waterways tax credit","url":"\/58.1-439.12\/","token":"58.1\/I\/3\/13\/58.1-439.12","metadata":false},{"id":71239,"structure_id":13153,"section_number":"58.1-439.12:01","catch_line":"Credit for cigarettes manufactured and exported","url":"\/58.1-439.12_01\/","token":"58.1\/I\/3\/13\/58.1-439.12_01","metadata":false},{"id":80405,"structure_id":13153,"section_number":"58.1-439.12:02","catch_line":" Biodiesel and green diesel fuels producers tax credit","url":"\/58.1-439.12_02\/","token":"58.1\/I\/3\/13\/58.1-439.12_02","metadata":false},{"id":77683,"structure_id":13153,"section_number":"58.1-439.12:03","catch_line":"Motion picture production tax credit","url":"\/58.1-439.12_03\/","token":"58.1\/I\/3\/13\/58.1-439.12_03","metadata":false},{"id":82387,"structure_id":13153,"section_number":"58.1-439.12:04","catch_line":"Tax credit for participating landlords","url":"\/58.1-439.12_04\/","token":"58.1\/I\/3\/13\/58.1-439.12_04","metadata":false},{"id":57964,"structure_id":13153,"section_number":"58.1-439.12:05","catch_line":"Green and alternative energy job creation tax credit","url":"\/58.1-439.12_05\/","token":"58.1\/I\/3\/13\/58.1-439.12_05","metadata":false},{"id":66012,"structure_id":13153,"section_number":"58.1-439.12:06","catch_line":"International trade facility tax credit","url":"\/58.1-439.12_06\/","token":"58.1\/I\/3\/13\/58.1-439.12_06","metadata":false},{"id":58192,"structure_id":13153,"section_number":"58.1-439.12:07","catch_line":"Telework expenses tax credit","url":"\/58.1-439.12_07\/","token":"58.1\/I\/3\/13\/58.1-439.12_07","metadata":false},{"id":84261,"structure_id":13153,"section_number":"58.1-439.12:08","catch_line":"Research and development expenses tax credit","url":"\/58.1-439.12_08\/","token":"58.1\/I\/3\/13\/58.1-439.12_08","metadata":false},{"id":54175,"structure_id":13153,"section_number":"58.1-439.12:09","catch_line":"Barge and rail usage tax credit","url":"\/58.1-439.12_09\/","token":"58.1\/I\/3\/13\/58.1-439.12_09","metadata":false},{"id":78639,"structure_id":13153,"section_number":"58.1-439.12:10","catch_line":"Virginia port volume increase tax credit","url":"\/58.1-439.12_10\/","token":"58.1\/I\/3\/13\/58.1-439.12_10","metadata":false},{"id":85547,"structure_id":13153,"section_number":"58.1-439.12:11","catch_line":"Major research and development expenses tax credit","url":"\/58.1-439.12_11\/","token":"58.1\/I\/3\/13\/58.1-439.12_11","metadata":false},{"id":65654,"structure_id":13153,"section_number":"58.1-439.12:12","catch_line":"Food donation tax credit","url":"\/58.1-439.12_12\/","token":"58.1\/I\/3\/13\/58.1-439.12_12","metadata":false},{"id":54927,"structure_id":13153,"section_number":"58.1-439.2","catch_line":" Coalfield employment enhancement tax credit","url":"\/58.1-439.2\/","token":"58.1\/I\/3\/13\/58.1-439.2","metadata":false},{"id":63351,"structure_id":13153,"section_number":"58.1-439.3","catch_line":"Repealed","url":"\/58.1-439.3\/","token":"58.1\/I\/3\/13\/58.1-439.3","metadata":false},{"id":58298,"structure_id":13153,"section_number":"58.1-439.4","catch_line":"Day-care facility investment tax credit","url":"\/58.1-439.4\/","token":"58.1\/I\/3\/13\/58.1-439.4","metadata":false},{"id":66742,"structure_id":13153,"section_number":"58.1-439.5","catch_line":"Agricultural best management practices tax credit","url":"\/58.1-439.5\/","token":"58.1\/I\/3\/13\/58.1-439.5","metadata":false},{"id":81908,"structure_id":13153,"section_number":"58.1-439.6","catch_line":"Worker retraining tax credit","url":"\/58.1-439.6\/","token":"58.1\/I\/3\/13\/58.1-439.6","metadata":false},{"id":60296,"structure_id":13153,"section_number":"58.1-439.6:1","catch_line":"Worker training tax credit","url":"\/58.1-439.6_1\/","token":"58.1\/I\/3\/13\/58.1-439.6_1","metadata":false},{"id":55856,"structure_id":13153,"section_number":"58.1-439.7","catch_line":"Tax credit for purchase of machinery and equipment used for advanced recycling and processing recyclable materials","url":"\/58.1-439.7\/","token":"58.1\/I\/3\/13\/58.1-439.7","metadata":false},{"id":82497,"structure_id":13153,"section_number":"58.1-439.8","catch_line":"Repealed","url":"\/58.1-439.8\/","token":"58.1\/I\/3\/13\/58.1-439.8","metadata":false},{"id":66196,"structure_id":13153,"section_number":"58.1-439.9","catch_line":"Tax credit for certain employers hiring recipients of Temporary Assistance for Needy Families","url":"\/58.1-439.9\/","token":"58.1\/I\/3\/13\/58.1-439.9","metadata":false}],"previous_section":{"id":65654,"structure_id":13153,"section_number":"58.1-439.12:12","catch_line":"Food donation tax credit","url":"\/58.1-439.12_12\/","token":"58.1\/I\/3\/13\/58.1-439.12_12","metadata":false},"next_section":{"id":63351,"structure_id":13153,"section_number":"58.1-439.3","catch_line":"Repealed","url":"\/58.1-439.3\/","token":"58.1\/I\/3\/13\/58.1-439.3","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-439.2\/","history_text":"

This law was first created in 1995. The record of its establishment is cataloged in chapter 775<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 7 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1996, chapter 1034<\/a>; in 1999, chapter 971<\/a>; in 2000, chapters 91<\/a> and 1066<\/a>; in 2006, chapters 788<\/a> and 803<\/a>; in 2011, chapter 851<\/a>; in 2012, chapters 309<\/a> and 649<\/a>; in 2018, chapters 853<\/a> and 855<\/a>.<\/p>","references":[{"id":84600,"section_number":"58.1-433.1","catch_line":"Virginia Coal Employment and Production Incentive Tax Credit","order_by":null,"url":"\/58.1-433.1\/"},{"id":62311,"section_number":"58.1-439","catch_line":"Major business facility job tax credit","order_by":null,"url":"\/58.1-439\/"}],"refers_to":[{"id":57990,"section_number":"58.1-2626.1","catch_line":"The Virginia Coal Employment and Production Incentive Tax Credit","order_by":null,"url":"\/58.1-2626.1\/"},{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"},{"id":84600,"section_number":"58.1-433.1","catch_line":"Virginia Coal Employment and Production Incentive Tax Credit","order_by":null,"url":"\/58.1-433.1\/"}],"permalink":{"id":253607,"object_type":"law","relational_id":54927,"identifier":"58.1-439.2","token":"58.1\/I\/3\/13\/58.1-439.2","url":"\/58.1-439.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-439.2\/","token":"58.1\/I\/3\/13\/58.1-439.2","dublin_core":{"Title":" Coalfield employment enhancement tax credit","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-439.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> For tax years beginning on and after January 1, 1996, but before January 1, 2017, and on and after January 1, 2018, but before January 1, 2022, any person who has an economic interest in coal mined in the Commonwealth shall be allowed a credit against the tax imposed by \u00a7 58.1-400<\/a> and any other tax imposed by the Commonwealth in accordance with the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> For metallurgical coal<\/span> mined by underground methods, the credit amount shall be based on the seam thickness as follows:\n\t\t\t\tThe seam thickness shall be based on the weighted average isopach mapping of actual metallurgical coal<\/span> thickness by mine as certified by a professional engineer. Copies of such certification shall be maintained by the person qualifying for the credit under this section for a period of three years after the credit is applied for and received and shall be available for inspection by the Department<\/span> of Taxation. The Department<\/span> of Energy is hereby authorized to audit all information upon which the isopach mapping is based. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For metallurgical coal<\/span> mined by surface mining methods, a credit in the amount of 40 cents ($0.40) per ton for coal sold in 1996, and each year thereafter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In addition to the credit allowed in subsection A, for tax years beginning on and after January 1, 1996, but before January 1, 2022, any person who is a producer of coalbed methane shall be allowed a credit in the amount of one cent ($0.01) per million BTUs of coalbed methane produced in the Commonwealth against the tax imposed by § 58.1-400<\/a> and any other tax imposed by the Commonwealth on such person. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> For purposes of this section, economic interest is the same as the economic ownership interest required by § 611 of the Internal Revenue Code which was in effect on December 31, 1977. A party<\/span> who only receives an arm’s length royalty shall not be considered as having an economic interest in coal mined in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> If the credit exceeds the person’s state tax liability for the tax year, the excess shall be redeemable by the Tax Commissioner<\/span> on behalf of the Commonwealth for 90 percent of the face value within 90 days after filing the return; however, for credit earned in tax years beginning on and after January 1, 2002, but before January 1, 2022, such excess shall be redeemable by the Tax Commissioner<\/span> on behalf of the Commonwealth for 85 percent of the face value within 90 days after filing the return. The remaining 10 or 15 percent of the value of the credit being redeemed, as applicable for such tax year, shall be deposited by the Commissioner in a regional economic development fund administered by the Virginia Coalfield Economic Development Authority to be used for regional economic diversification in accordance with guidelines developed by the Virginia Coalfield Economic Development Authority and the Virginia Economic Development Partnership. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> No person may utilize more than one of the credits on a given ton of coal described in subsection A. No person may claim a credit pursuant to this section for any ton of coal for which a credit has been claimed under § 58.1-433.1<\/a> or 58.1-2626.1<\/a>. Persons who qualify for the credit may not apply such credit to their tax returns prior to January 1, 1999, and only one year of credits shall be allowed annually beginning in 1999. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The amount of credit allowed pursuant to subsection A shall be the amount of credit earned multiplied by the person’s employment factor. The person’s employment factor shall be the percentage obtained by dividing the total number of coal mining jobs of the person filing the return, including the jobs of the contract<\/span> operators of such person, as reflected in the annual tonnage reports filed with the Department<\/span> of Energy for the year in which the credit was earned by the total number of coal mining jobs of such persons or operators as reflected in the annual tonnage reports for the year immediately prior to the year in which the credit was earned. In no case shall the credit claimed exceed that amount set forth in subsection A. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> The tax credit allowed under this section shall be claimed in the third taxable year following the taxable year in which the credit was earned and allowed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> As used in this section, “metallurgical coal<\/span>” means bituminous coal used for the manufacture of iron and steel with calorific value of 14,000 BTUs or greater on a moisture and ash free basis. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\n COALFIELD EMPLOYMENT ENHANCEMENT TAX CREDIT (\u00a7 58.1-439.2)\n\nA. For tax years beginning on and after January 1, 1996, but before January 1,\n2017, and on and after January 1, 2018, but before January 1, 2022, any person\nwho has an economic interest in coal mined in the Commonwealth shall be allowed\na credit against the tax imposed by \u00a7 58.1-400 and any other tax imposed by the\nCommonwealth in accordance with the following:\n\n 1. For metallurgical coal mined by underground methods, the credit amount\n shall be based on the seam thickness as follows:\n \t\t\t\tThe seam thickness shall be based on the weighted average isopach mapping\n of actual metallurgical coal thickness by mine as certified by a professional\n engineer. Copies of such certification shall be maintained by the person\n qualifying for the credit under this section for a period of three years after\n the credit is applied for and received and shall be available for inspection\n by the Department of Taxation. The Department of Energy is hereby authorized\n to audit all information upon which the isopach mapping is based.\n\n 2. For metallurgical coal mined by surface mining methods, a credit in the\n amount of 40 cents ($0.40) per ton for coal sold in 1996, and each year\n thereafter.\n\nB. In addition to the credit allowed in subsection A, for tax years beginning on\nand after January 1, 1996, but before January 1, 2022, any person who is a\nproducer of coalbed methane shall be allowed a credit in the amount of one cent\n($0.01) per million BTUs of coalbed methane produced in the Commonwealth against\nthe tax imposed by § 58.1-400 and any other tax imposed by the Commonwealth\non such person.\n\nC. For purposes of this section, economic interest is the same as the economic\nownership interest required by § 611 of the Internal Revenue Code which was\nin effect on December 31, 1977. A party who only receives an arm’s length\nroyalty shall not be considered as having an economic interest in coal mined in\nthe Commonwealth.\n\nD. If the credit exceeds the person’s state tax liability for the tax\nyear, the excess shall be redeemable by the Tax Commissioner on behalf of the\nCommonwealth for 90 percent of the face value within 90 days after filing the\nreturn; however, for credit earned in tax years beginning on and after January\n1, 2002, but before January 1, 2022, such excess shall be redeemable by the Tax\nCommissioner on behalf of the Commonwealth for 85 percent of the face value\nwithin 90 days after filing the return. The remaining 10 or 15 percent of the\nvalue of the credit being redeemed, as applicable for such tax year, shall be\ndeposited by the Commissioner in a regional economic development fund\nadministered by the Virginia Coalfield Economic Development Authority to be used\nfor regional economic diversification in accordance with guidelines developed by\nthe Virginia Coalfield Economic Development Authority and the Virginia Economic\nDevelopment Partnership.\n\nE. No person may utilize more than one of the credits on a given ton of coal\ndescribed in subsection A. No person may claim a credit pursuant to this section\nfor any ton of coal for which a credit has been claimed under § 58.1-433.1\nor 58.1-2626.1. Persons who qualify for the credit may not apply such credit to\ntheir tax returns prior to January 1, 1999, and only one year of credits shall\nbe allowed annually beginning in 1999.\n\nF. The amount of credit allowed pursuant to subsection A shall be the amount of\ncredit earned multiplied by the person’s employment factor. The\nperson’s employment factor shall be the percentage obtained by dividing\nthe total number of coal mining jobs of the person filing the return, including\nthe jobs of the contract operators of such person, as reflected in the annual\ntonnage reports filed with the Department of Energy for the year in which the\ncredit was earned by the total number of coal mining jobs of such persons or\noperators as reflected in the annual tonnage reports for the year immediately\nprior to the year in which the credit was earned. In no case shall the credit\nclaimed exceed that amount set forth in subsection A.\n\nG. The tax credit allowed under this section shall be claimed in the third\ntaxable year following the taxable year in which the credit was earned and\nallowed.\n\nH. As used in this section, “metallurgical coal” means bituminous\ncoal used for the manufacture of iron and steel with calorific value of 14,000\nBTUs or greater on a moisture and ash free basis.\n\nHISTORY: 1995, c. 775; 1996, c. 1034; 1999, c. 971; 2000, cc. 91, 1066; 2006,\ncc. 788, 803; 2011, c. 851; 2012, cc. 309, 649; 2018, cc. 853, 855; 2021, Sp.\nSess. I, cc. 532, 553, 554.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}