Virginia Gov. Ralph Northam signed a bill into law that reinstates tax credits designed to incentivize coal employment and production.
The measure revives credits that expired in 2016, but limits them to metallurgical coal producers to keep the state's costs down. Producers can claim a credit of $2 per ton of met coal mined underground from seams 36 inches thick or less; $1 per ton of coal mined from thicker seams; and 40 cents per ton for surface-mined coal.
Northam's predecessor Terry McAuliffe, also a Democrat, vetoed attempts to reinstate the tax credit in 2017, citing a report from Virginia's Joint Legislative Audit and Review Commission that concluded the credits had not achieved their goal.
"This is a big win for southwest Virginia and I am thankful for the cooperation with the governor's administration," The Associated Press quoted Republican Rep. Terry Kilgore, the bill's sponsor, as saying.
Harry Childress, president of the Virginia Coal and Energy Alliance, said the tax credit would allow existing mining operations to hire workers and replace aging equipment.
Opponents of the bill told AP that even though the tax credit will not apply to coal for power generation, all types of coal mining have negative environmental impacts.
