Va. Proposes Tax Credit For Shipping by Rail or Barge

Virginia Gov. Bob McDonnell wants any company that ships cargo from the port in Norfolk via barge or rail rather than truck to receive a $50 per container state income tax credit.

The measure, which McDonnell said would reduce emissions and traffic, is part of the new transportation plan unveiled by the Republican governor on Jan. 14.

The plan also calls for a constitutional amendment to prevent transportation revenue from being moved to the general fund.

McDonnell also wants a portion of the 5% state sales tax generated in the northern Virginia and port regions to be given back to those areas for transportation projects.

Democratic legislators said they would not support such a diversion of sales tax revenue from the general fund which pays for education and public safety.