Income Tax Deduction for Energy-Efficient Products

December 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

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Virginia
Incentive Type:	Personal Tax Deduction
Web Site:
Administrator:	Virginia Department of Taxation
Start Date:	3/23/2007
Eligible Renewable/Other 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

Authorities

Name:	Va. Code § 58.1-322.03
Date Enacted:	3/23/2007
Effective Date:	3/23/2007

Contact

Name:	Taxpayer Assistance - Virginia
Organization:	Virginia Department of Taxation
Address:	PO Box 1880 Richmond VA 23218-1880
Phone:	(804) 367-8031
Email:	tax-busqtns@state.va.us

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.