VA HB760

Creates a nonrefundable income tax credit of $2,500 for contractors who build "entry-level" energy-efficient homes (2,000 square feet or less) and $1,875 for "move-up" energy-efficient homes (2,001-2,600 square feet)

Homes must meet EPA Energy Star New Homes Program requirements or achieve specified HERS index scores based on Virginia climate zones (45-51 depending on zone)

Tax credits are available from January 1, 2026 through January 1, 2033, with annual inflation adjustments beginning in 2027

Individual contractors may claim up to $500,000 in credits per year; total statewide credits capped at $10 million annually, allocated pro rata by the Department of Taxation

Unused credits may be carried forward for seven years or freely transferred to other taxpayers