HOUSE BILL NO. 2160 Offered January 10, 2007 Prefiled January 9, 2007 A BILL to amend the Code of Virginia by adding in Article 3 of Chapter 3 of Title 58.1 a section numbered 58.1-339.12, relating to energy efficient equipment tax credit. ---------- Patron-- O'Bannon ---------- Committee Referral Pending ----------

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Article 3 of Chapter 3 of Title 58.1 a section numbered 58.1-339.12 as follows:

§ 58.1-339.12. Energy efficient equipment tax credit.

A. For taxable years beginning on or after January 1, 2007, any taxpayer shall be allowed a credit against the tax imposed by § 58.1-320 in an amount equaling 30% of expenditures made after January 1, 2007, for energy efficient equipment, as defined herein, purchased by him for his residence. Only one such credit shall be permitted for each such expenditure.

B. The amount of the credit shall not exceed $1,500 for any energy efficient equipment expenditure or the tax imposed by this chapter, whichever is less. In determining such expenditures, the labor of the taxpayer shall not be included. If the allowable credit exceeds the tax imposed by this chapter for the taxable year, such excess may be carried over for the next five taxable years by the taxpayer.

C. For purposes of this section, "energy efficient equipment" means equipment installed in a residence that uses solar or geothermal energy or any form of renewable energy approved by the Secretary of Natural Resources through regulations that is a substitute for traditional energy for water heating, active space heating and cooling, passive heating, and generating electricity. The term also includes related devices necessary for collecting, storing, exchanging, conditioning, or converting solar energy to other useful forms of energy.