McAuliffe vetoes legislation to extend coal tax credits
Gov. Terry McAuliffe vetoed on Friday a bill that would extend coal tax credits.
“It would be unwise to spend additional taxpayer dollars on a tax credit that has fallen so short of its intended effectiveness,” McAuliffe said in a statement.
McAuliffe said from 1988 until 2015, coal mine operators, electricity generators and other coal-related companies claimed more than $610 million in tax credits. During the same period, the number of Virginia coal miners fell from 11,106 to 2,946.
Senate Bill 44 would have extended coal tax credits designed to increase employment in the sector.
A 2012 report from the Joint Legislative Audit and Review Commission (JLARC) questioned the efficacy of the tax credit. JLARC said that coal employment had been dropping even faster than predicted before the tax credits were established.