                                 CODE OF VIRGINIA

GREEN AND ALTERNATIVE ENERGY JOB CREATION TAX CREDIT (§ 58.1-439.12:05)

A. For taxable years beginning on or after January 1, 2010, but before January
1, 2025, a taxpayer shall be allowed a credit against the tax levied pursuant to
&#xA7; 58.1-320 or 58.1-400 for each new green job created within the
Commonwealth by the taxpayer. The amount of the annual credit for each new green
job shall be $500 for each annual salary that is $50,000 or more. The credit
shall be first allowed for the taxable year in which the job has been filled for
at least one year and for each of the four succeeding taxable years provided the
job is continuously filled during the respective taxable year. Each taxpayer
qualifying under this section shall be allowed the credit for up to 350 green
jobs.

B. As used in this section:
			&#8220;Green job&#8221; means employment in industries relating to the field
of renewable, alternative energies, including the manufacture and operation of
products used to generate electricity and other forms of energy from alternative
sources that include hydrogen and fuel cell technology, landfill gas, methane
extracted in Planning District 2, geothermal heating systems, solar heating
systems, hydropower systems, wind systems, and biomass and biofuel systems. The
Secretary of Commerce and Trade shall develop a detailed definition and list of
jobs that qualify for the credit provided in this section and shall post them on
his website.
			&#8220;Job&#8221; means employment of an indefinite duration of an individual
whose primary work activity is related directly to the field of renewable,
alternative energies and for which the standard fringe benefits are paid by the
taxpayer, requiring a minimum of either (i) 35 hours of an employee&#8217;s time
per week for the entire normal year of such taxpayer&#8217;s operations, which
&#8220;normal year&#8221; must consist of at least 48 weeks, or (ii) 1,680 hours
per year. Positions created when a job function is shifted from an existing
location in the Commonwealth shall not qualify as a job under this section.

C. To qualify for the tax credit provided in subsection A, a taxpayer shall
demonstrate that the green job was created by the taxpayer, and that such job
was continuously filled in the Commonwealth during the respective taxable year.

D. The amount of the credit that may be claimed in any single taxable year shall
not exceed the taxpayer&#8217;s liability for taxes imposed by this chapter for
that taxable year. If the amount of credit allowed under this section exceeds
the taxpayer&#8217;s tax liability for the taxable year in which the green job
was continuously filled, the amount that exceeds the tax liability may be
carried over for credit against the income taxes of the taxpayer in the next
five taxable years or until the total amount of the tax credit has been taken,
whichever is sooner.

E. Credits granted to a partnership, limited liability company, or electing
small business corporation (S corporation) shall be allocated to the individual
partners, members, or shareholders, respectively, in proportion to their
ownership or interest in such business entities.

F. If the taxpayer is eligible for the tax credits under this section and
creates green jobs in an enterprise zone, as defined in &#xA7; 59.1-539, such
taxpayer may also qualify for the benefits under the Enterprise Zone Grant
Program (&#xA7; 59.1-538 et seq.).

G. A taxpayer shall not be allowed a tax credit pursuant to this section for any
green job for which the taxpayer is allowed (i) a major business facility job
tax credit pursuant to &#xA7; 58.1-439 or (ii) a federal tax credit for
investments in manufacturing facilities for clean energy technologies that would
foster investment and job creation in clean energy manufacturing.

HISTORY: 2010, cc. 722, 727; 2015, cc. 249, 486; 2018, cc. 346, 347; 2020, c.
429; 2023, c. 509.