Commonwealth of Virginia Offering 50% Tax Credit
Discover Virginia’s Waste Oil Laws and Incentives
Virginia is one of a few states in the US that offers positive waste oil benefits for businesses willing to invest in environmentally friendly technology. Many industrial and automotive businesses must think about ways to handle used waste oil that comply with federal guidelines. In Virginia, companies have access to a recycling tax credit as well as equipment credits. If you’re operating a business that collects or creates waste oil in the mother of states, consider looking into your eligibility for these benefits.
Virginia’s Waste Oil Laws
Article 11 of the Virginia Water Control Law discusses oil laws active in the state today. Under the laws, all residents of Virginia must avoid disposing of any kind of motor oil into the environment. The state may fine anyone caught illegally dumping oil on state property and make them clean up the mess. Companies and individuals should collect and store waste oil in secure containers and take the oil to an appropriate waste disposal facility or recycling the oil using an approved method.
Waste Motor Oil Burning Equipment Credit
Unlike other states, Virginia provides an incentive in the form of a credit to businesses that purchase environmentally friendly waste oil burning equipment that meets state guidelines. Under the credit terms, businesses that operate in Virginia and collect waste oil from individuals may apply for a tax credit that’s equal to 50% of the price of the equipment – as long as that equipment is used exclusively for burning waste oil.
Taxpayers may only claim credits up to a maximum of $5,000 and may only use the credit during the same year the business purchased the equipment. Businesses may not use the remaining tax credit amount in any way. The state’s Department of Environmental Quality must approve of the equipment in question before a company may take advantage of the tax credit.
Businesses searching for waste oil burning equipment may find different products on the market today. Some are designed exclusively for disposal while others convert the waste oil into a free fuel source for high efficiency heating and cooling.
Reimbursement for Regulated Storage Tank Mishaps
In addition to the tax credit for oil burning equipment, Virginia offers some recompense for enterprises that maintain regulated storage tanks. If a company identifies a leak or another problem with the storage tank and needs to engage in cleanup activities, the state may offer compensation for the costs incurred using funds from the Virginia Petroleum Storage Tank Fund.
Energy efficient equipment often makes sense in the long term, but businesses may run into difficulties justifying the investment during the short term. VirginiaSAVES, a subsidized financing program, enables private and public organizations to invest in environmentally friendly construction projects, retrofits, and projects. Depending on the business and the type of waste oil heating equipment purchases, some organizations may qualify for this low interest financing opportunity. The state evaluates retrofit projects on a case by case basis.
Finding the Right Waste Oil Solution
Automotive and industrial enterprises that produce waste oil may benefit from investing in cutting edge waste oil burning solutions. In addition to helping organizations maintain regulatory compliance, waste oil heating and cooling solutions are also environmentally friendly and extremely efficient. Consider turning an existing byproduct into a free source of fuel for cold Virginia winters and warm summers.
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