Hydrogen Laws and Incentives in Virginia
The list below contains summaries of all Virginia laws and incentives related to hydrogen.
Laws and Regulations
Alternative Fuel Provider License
Alternative fuel providers, bulk users, and retailers, or any person who fuels an alternative fuel vehicle from a private source that does not pay the alternative fuels tax must obtain an alternative fuel license from the Virginia Department of Motor Vehicles (DMV). For more information, see the DMV Fuels Tax Licensing website.
(Reference Virginia Code 58.1-2244)
Alternative Fuel School Bus and Fueling Infrastructure Loans
The Virginia Board of Education may use funding from the Literary Fund to provide loans to school boards that convert school buses to operate on alternative fuels or construct alternative fueling stations.
(Reference Virginia Code 22.1-146)
Alternative Fuel Tax
Alternative fuels used to operate on-road vehicles are taxed at an annually adjusted rate per gasoline gallon equivalent (GGE). Alternative fuels are taxed at the same rate as gasoline and gasohol. Refer to the Virginia Department of Motor Vehicles Fuels Tax Rates and Alternative Fuels Conversion website for fuel-specific GGE calculations.
(Reference Virginia Code 58.1-2217 and 58.1-2249)
Alternative Fuel Vehicle (AFV) Grant Authorization
Local governments are authorized to establish a green bank to promote investment in clean energy technologies, including AFVs and related infrastructure.
(Reference Virginia Code 15.2-958.3:1)
Alternative Fuel Vehicle (AFV) Tax Reduction Authorization
Local governments may reduce personal property taxes paid on AFVs and low-speed vehicles. AFVs include vehicles that operate using natural gas, liquefied petroleum gas or propane, hydrogen, or electricity.
(Reference Virginia Code 58.1-3506)
Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Deployment Support
California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of MHD ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).
In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.
For more information, see the MHD ZEVs: Action Plan Development Process website.
Zero Emission Vehicle (ZEV) Sales Requirement and Low-Emission Vehicle (LEV) Standards
The Virginia Air Pollution Control Board has adopted the California motor vehicle emissions and compliance requirements specified in Title 13 of the California Code of Regulations. Beginning January 1, 2024, these regulations apply to all passenger cars, light-duty trucks, and medium-duty vehicles. Manufacturers must meet the greenhouse gas emissions standard and the ZEV production and sales requirements.
In January 2024, Virginia adopted the California vehicle emission standards and compliance requirements set forth in the California Air Resources Board Advanced Clean Cars II regulation. These new emissions standards and requirements will begin with model year 2027 and require that 100% of new passenger vehicles sold in Virginia must be ZEVs by 2035.
(Reference Virginia Code 10.1-1307.04)
State Incentives
Alternative Fuel Tax Exemption
Alternative fuel is exempt from taxes if it is sold to a government entity for its exclusive use, a non-profit charitable organization for the purpose of providing charitable services for low-income medical patients, or produced by an agricultural operation and used exclusively for farm use or vehicles of that producer.
(Reference Virginia Code 58.1-2250)
Alternative Fuel and Hybrid Electric Vehicle (HEV) Emissions Testing Exemption
Vehicles powered exclusively by natural gas, propane, hydrogen, a combination of compressed natural gas and hydrogen, or electricity are exempt from the Virginia emissions inspection program. Qualified HEVs with U.S. Environmental Protection Agency fuel economy ratings of at least 50 miles per gallon (city) are also exempt from the emissions inspection program unless remote sensing devices indicate the HEV may not meet current emissions standards. For more information, including a list of HEVs that qualify, see the Virginia Department of Motor Vehicles Emissions Inspections website.
(Reference Virginia Code 46.2-1177 through 46.2-1178 and 46.2-749.3)
Government Alternative Fuel Vehicle (AFV) Incentive
The Virginia Department of Mines, Minerals and Energy, in collaboration with the Virginia Department of Transportation, offers up to $10,000 to state agencies and local governments for the incremental cost of new or converted AFVs. To be eligible, vehicles must comply with Buy America provisions or qualify for a waiver from the U.S. Department of Transportation Federal Highway Administration, and must be garaged in areas of air quality nonattainment, as recognized by the federal Congestion Mitigation and Air Quality Improvement (CMAQ) program. For more information, see the Virginia CMAQ Incentive Program website.
Green Jobs Tax Credit
Qualified employers are eligible for a $500 tax credit for each new green job created that offers a salary of at least $50,000, for up to 350 jobs per employer. The credit is allowed for the first five years that the job is continuously filled. For the purposes of this tax credit, a green job is defined as employment in industries relating to renewable or alternative energy, including hydrogen and fuel cell technology, landfill gas, and biofuels. For more information, see the Virginia Department of Taxation Environmental Credits website.
(Reference Virginia Code 58.1-439.12:05)
High Occupancy Vehicle (HOV) Lane Exemption
Alternative fuel vehicles (AFVs) displaying the Virginia Clean Special Fuel license plate may use Virginia HOV lanes on specified areas of I-64, I-264, I-564, the Dulles Toll Road, and in the City of Alexandria, regardless of the number of occupants. For HOV lanes serving the I-66 corridor, only registered vehicles displaying Clean Special Fuel license plates issued before July 1, 2011, are exempt from HOV lane requirements. Only dedicated AFVs are eligible; see the Virginia Department of Motor Vehicles website for a complete list of qualifying vehicles. The annual fee for Clean Special Fuel license plates is $25 in addition to the prescribed fee for commonwealth license plates. This exemption expires September 30, 2025. For more information, see the Virginia Department of Transportation HOV Lanes website.
(Reference Virginia Code 33.2-501 and 46.2-749.3)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.