Virginia House passes bill ending coal tax credits
RICHMOND, Va. (AP) — The Virginia House passed a bill Monday that would phase out two costly coal tax credits that a state investigation recently found generate economic losses for the state.
On a 54-45 vote, the chamber approved the measure from Del. Sally Hudson. The bill still must pass the Senate before it can go to the governor. A similar measure in the Senate hasn’t yet received a vote.
The incentives are designed to encourage coal production and coal use and aid the struggling economy of southwest Virginia. A report last year from the state’s legislative watchdog agency found that they have created a net loss for the state.
The report estimated that between fiscal years 2010 and 2018, the Virginia economy lost 35 jobs, $21 million in gross domestic product, and $5 million in personal income because of the credits. During that same period, coal mining companies and electricity generators saved $291.5 million in income taxes, according to the report, which recommended that they be repealed.