CODE OF VIRGINIA

SEPARATE CLASSIFICATION OF MACHINERY AND TOOLS USED DIRECTLY IN PRODUCING OR
GENERATING RENEWABLE ENERGY (§ 58.1-3508.6)

Machinery and tools, including repair and replacement parts, owned by a business
and used directly in producing or generating renewable energy shall constitute a
classification for local taxation separate from other classifications of
machinery and tools as defined in § 58.1-3507. The governing body of any
county, city, or town may levy a tax on such classification of property at a
different rate from the tax levied on other machinery and tools. The rate of tax
and the rate of assessment shall not exceed that applicable to the general class
of machinery and tools.The rate of tax and rate of assessment under this section
shall not apply to machinery and tools owned by a business and used directly in
producing or generating renewable energy covered under Chapter 26 (§ 58.1-2600
et seq.), unless the rate of tax and rate of assessment under this section would
result in a lower property tax on such machinery and tools.As used in this
section, “renewable energy” means energy derived from sunlight,
wind, falling water, biomass, sustainable or otherwise (the definitions of which
shall be liberally construed), energy from waste, landfill gas, municipal solid
waste, wave motion, tides, or geothermal power and does not include energy
derived from coal, oil, natural gas, or nuclear power.

HISTORY: 2015, c. 230.