Virginia Electric Laws and Incentives
State Incentives
High Occupancy Vehicle (HOV) Lane Exemption
Alternative fuel vehicles (AFVs) displaying the Virginia Clean Special Fuels license plate may use Virginia HOV lanes, regardless of the number of occupants, until July 1, 2010. For HOV lanes serving the I-95/395 corridor, only registered vehicles displaying Clean Special Fuels license plates issued prior to July 1, 2006, will be exempt from HOV lane requirements. Dedicated AFVs and some hybrid electric vehicles may qualify for the license plate and HOV exemption; see the Virginia Department of Motor Vehicles Web site for a complete list of qualifying vehicles. The annual fee for Clean Special Fuels license plates is $25 in addition to the prescribed fee for commonwealth license plates. (Reference Virginia Code 33.1-46.2 and 46.2-749.3)
Alternative Fuel Job Creation Tax Credit
Businesses involved with the manufacture of components for alternative fuel vehicles (AFVs), AFV conversions, or the production, storage, or dispensing of hydrogen as a vehicle fuel are eligible for a job creation tax credit for up to $700 per full-time employee. The credit is allowed in the taxable year in which the job is created and in each of the two succeeding years in which the job is continued. Qualifying businesses include AFV component manufacturers and vehicle conversion companies. Qualified AFVs include vehicles that operate using natural gas, hydrogen, or electricity. This credit is effective for taxable years through December 31, 2011. (Reference Virginia Code 58.1-439.1)
State Laws and Regulations
Alternative Fuels Tax
A tax of $0.175 per gallon is imposed on liquid alternative fuels used to operate alternative fuel vehicles (AFVs). Alternatively, an annual license tax of $50.00 per vehicle is imposed on AFVs that are fueled from a private source. (Reference Virginia Code 58.1-2249)
Alternative Fuel License
The following individuals must obtain an alternative fuel license from the Virginia Department of Motor Vehicles: a provider of an alternative fuel; a bulk user of an alternative fuel; a retailer of an alternative fuel; and any person who fuels their alternative fuel vehicle from a private source that does not pay the alternative fuels tax. (Reference Virginia Code 58.1-2244)
Low-Speed Vehicle Access to Roadways
Low-speed vehicles may not operate at speeds greater than 25 miles per hour (mph) and may only be used on roads with posted speed limits of up to 35 mph. The vehicle must comply with safety standards contained in Title 49 of the Code of Federal Regulations, section 571.500, meet the standards set forth in Virginia Code 46.2-908.2, and meet the same titling, registration, and insurance requirements applicable to passenger cars. (Reference Virginia Code 46.2-100, 46.2-908.2, and 46.2-908.3)
Alternative Fuel Vehicle (AFV) Tax Reduction
Local governments have the option of reducing personal property taxes paid on AFVs, for vehicles that operate using natural gas, liquefied petroleum gas, hydrogen, or electricity. This provision does not apply to low-speed vehicles. (Reference Virginia Code 58.1-3506)
Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans
The Virginia Board of Education may use funding from the Literary Fund to grant loans to school boards that convert school buses to operate on alternative fuels or construct alternative fueling stations. (Reference Virginia Code 22.1-146)
