Victory on Coal Tax Credits!

By Corrina Beall Legislative Coordinator

After decades and hundreds of millions of Virginia taxpayer dollars going to subsidize the coal industry, Virginia will no longer give special tax breaks to coal mining companies and utilities, including bad actors like Alpha Natural Resources. Last week, Governor Terry McAuliffe vetoed Senate Bill 44, a bill to extend two tax breaks for Big Coal.

Thank Governor McAuliffe for his leadership.

Over the years, Virginia has spent over $610 million on the coal tax credits. According to the Commonwealth Institute, between 1988 and 2014 coal mining employment fell 67 percent. Coal mining employment fell an additional 23 percent, down to just 2,850 jobs, in 2015 alone. Coal just can’t compete in today’s diverse energy marketplace. After years of gradual decline, coal mining, which used to be the economic engine of southwest Virginia, is now in a free fall. 

It’s high time for Virginia to invest in innovative and growing renewable energy industries, like solar. This year’s Solar Jobs Census found that for the third straight year, the solar workforce grew 20 percent in the United States and employs over 200 thousand people—more than the coal industry nationwide. 

Tax credits for coal utilities and mining companies have done little to change the economic realities in the coalfields. Virginia’s legislative watchdog, the Joint Legislative Audit and Review Commission said as much in 2012: “changes in coal mining activity appear unaffected by the credits.” Despite their large fiscal impact, Virginia’s coal tax credits do not effectively promote coal employment. Ending the subsides now is the first step to transitioning away from dirty fossil fuels, and embracing clean energy technology. 

Write to Governor McAuliffe today, and thank him for taking this first step with us.

Tax credits for coal utilities and mining companies have done little to change the economic realities in the coalfields. The significant number of coal mining company bankruptcies, including Alpha Natural Resources, continues to demonstrate that the coal tax credit is unable to save the industry. 

Virginia’s leaders should instead focus on policies that benefit Virginians in Southwest by providing health care, public education, workforce training and Community College certifications, and diversifying the SW Virginia economy through other industries, including the deployment of clean, renewable energy and energy efficiency.