During the 1995 Session, the General Assembly enacted House Bill 2575 (1995 Acts of Assembly, Chapter 775), which established the Coalfield Employment Enhancement Tax Credit for taxpayers with an economic interest in coal mined in Virginia and for producers of coalbed methane, effective for taxable years beginning on or after January 1, 1996. The original Coalfield Employment Enhancement Tax Credit expired for taxable years beginning on or after January 1, 2017.
During the 2018 Session, the General Assembly enacted House Bill 665 (2018 Acts of Assembly, Chapter 853) and Senate Bill 378 (2018 Acts of Assembly, Chapter 855), which reinstated the Coalfield Employment Enhancement Tax Credit for taxable years beginning on and after January 1, 2018, but before January 1, 2023. The reinstated credit is limited to metallurgical coal mined by underground methods and surface methods, as well as the production of coalbed methane. This legislation requires Virginia Tax to adopt guidelines to implement the provisions of such legislation.