Delegate Esteliet Lopez presented a substitute to House Bill 2740 that would create a temporary tax credit intended to encourage on‑site, mobile asphalt recycling equipment. The substitute narrowed the original bill to focus on mobile asphalt machinery rather than mobile recycling generally, places environmental review responsibilities with the Department of Environmental Quality, and included a one‑year sunset so the credit could be evaluated as part of an ongoing review of tax preferences.

Lopez said the substitute responds to stakeholder concerns and noted Virginia’s large roadway network and heavy use of asphalt: she cited statewide inventories of pavement millings and VDOT limits on recycled content in new asphalt mixes. She argued mobile in‑place recycling could reduce truck trips, decrease use of virgin materials, lower greenhouse‑gas emissions, and reduce pavement‑replacement costs.

Trenton Clark, president of the Virginia Asphalt Association, told the committee the equipment can cost more than $1 million and cited Federal Highway Administration estimates that in‑place recycling can be 30–50% cheaper than conventional replacement. Clark offered past project savings as examples.

Members of the committee emphasized the tax‑policy review process. Delegate Watts and others noted the Joint Subcommittee to Evaluate Tax Preferences has been reactivated and should review a new credit of $3 million to ensure return on investment and to avoid setting a precedent without oversight. On a motion to “gently lay on the table with a letter to the Joint Subcommittee to Evaluate Tax Preferences,” the subcommittee voted 6-0 to table the bill and send a letter requesting evaluation.

The recorded action leaves the bill tabled and requests a formal review by the standing tax preferences review body; proponents said they would work with the Department of Taxation and DEQ if the measure moves forward.