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Bill

HB 2086

Income tax, state; energy efficient homes tax credits.

2025 Regular Session Introduced by Michelle Maldonado and 2 co-sponsors

Virginia bill creating income tax credits for homeowners making energy efficiency home improvements to reduce costs and encourage residential upgrades.

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Bill Summary · HB 2086

Legislative bill overview

HB 2086 establishes state income tax credits for Virginia homeowners who make energy efficiency improvements to their residences. The bill incentivizes residential energy upgrades by allowing taxpayers to claim a credit against their state income tax liability for qualifying home efficiency modifications.

Why is this important

Energy efficiency upgrades can reduce household utility costs and carbon emissions, but upfront expenses often deter homeowners from making improvements. Tax credits lower the effective cost of these investments, potentially accelerating adoption of energy-saving technologies while supporting Virginia's climate and sustainability goals.

Potential points of contention

  • Fiscal impact: The state revenue loss from tax credits could be substantial depending on the credit percentage and eligible improvements, potentially reducing available funds for other state priorities
  • Equity concerns: Tax credits primarily benefit higher-income households that can afford home improvements and have sufficient tax liability to claim credits; renters and lower-income homeowners may see limited benefit
  • Credit scope definition: Disagreement likely exists over which improvements qualify (insulation, HVAC, solar, windows, etc.) and whether credit limits or caps should apply to control costs

Compiled from official sources — confirm details with the bill’s official record.

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