Coal

Virginia Governor Vetoes Coal Tax Credit for Third Time

By Editors of Power Engineering

Virginia Governor Terry McAuliffe vetoed a bill that would have reinstated coal tax credits in the state.

This is the third year in a row McAuliffe has vetoed legislation that would bring back a $7.3 million coal employment and production incentive tax credit that would offer $3 per ton of coal purchased, reported the Roanoke Times.

McAuliffe cited a 2012 report that indicated the “ineffectiveness” of the credit, as coal production declined at the same rate or faster even with tax credits purposefully designed to prop up Virginia’s coal industry.

The tax credit for coal mine operators expired last year, as did an option for power companies to share coal tax credits with mine operators.