Coal news and updates

On the heels of a critical report showing that Virginia’s controversial coal mine tax credits is generating economic losses for the commonwealth, Democrats in the General Assembly are advancing legislation to eliminate the program.

 

Sen. Jeremy McPike of Prince William and Del. Sally Hudson of Charlottesville are carrying legislation to scrap the tax credits next January, and before that happens, a workgroup will convene to figure out how the coalfield region can effectively transition its economy away from its reliance on fossil fuels.

 

“It seems these coal tax credits have outlived their purpose, and there are better ways to invest in the communities that have relied on them,” Hudson said.

 

The state has spent $225 million between 2010 and 2018 on coal tax credits — making them one of the state’s largest incentives to promote business growth — but a Joint Legislative Audit and Review Commission report found negligible economic benefits in spending and returns in revenue, and it recommended the legislature eliminate them.

 

Virginia offers two major tax credits aimed at boosting coal mining in Virginia, which has been in a steep decline. Lawmakers tweaked the coal tax credit a few years ago so it applied only for high quality metallurgical coal, a type of coal used in the production of steel. Virginia enjoys a good export market on that coal.

 

Source : https://roanoke.com/news/local