Bill > SB935

This bill, specifically amending Section 11-13-2r of the West Virginia Code, aims to eliminate a business and occupation tax exemption previously granted to certain coal-fired merchant power plants. The original law provided a tax exemption on the generating capacity of these plants. However, this bill introduces changes that will phase out this exemption. Starting July 1, 2021, owners or operators of coal-fired generating units in operation before January 1, 1995, can elect to recompute their taxable generating capacity to be 45 percent of their official capability, but this election is irrevocable and requires them to keep the plants operational until at least July 1, 2025. For plants regulated entirely by another state, this reduced tax rate will end on July 1, 2026, after which they will be taxed at 100 percent of their official capability. A significant provision is the "recapture tax," which requires owners or operators to repay any tax savings gained from this exemption if the affected coal-fired generating units cease operation before July 1, 2025, unless the closure is mandated by federal law. This recapture tax also applies if the generating unit is transferred before July 1, 2025. The bill clarifies that "taxable generating capacity" and "official capability" are defined as in Section 11-13-2o, with modifications for taxable periods starting July 1, 2021.

Budget and Finance, Transportation and Infrastructure

http://www.wvlegislature.gov/Bill_Status/Bills_history.cfm?input=935&year=2026&sessiontype=RS&btype=bill