West Virginia 2024 Regular Session

West Virginia House Bill HB5522

Introduced
2/8/24  
Refer
2/8/24  

Caption

Relating to providing a credit against the business and occupation tax imposed on coal-fired electric generating units to help off-set environmental compliance costs

Impact

The proposed tax credit is set at 35% of the qualifying expenditures for pollution control equipment, which includes technologies aimed at reducing air, water, and land pollution. By implementing this credit, the bill seeks to ensure that coal-fired plants can continue operating effectively, thereby resulting in reliable and affordable electricity for West Virginia residents. Given the current regulatory environment, the bill might extend the viability of coal power in the state while also addressing concerns about environmental impact.

Summary

House Bill 5522 aims to amend the West Virginia Code by establishing a tax credit against the business and occupation tax specifically for coal-fired electric generating units. The intended purpose of this bill is to help offset the costs related to environmental compliance, particularly expenses incurred in the installation, repair, and maintenance of environmental pollution control equipment. The bill emphasizes the importance of coal as a valuable energy resource in West Virginia and reflects a commitment to support the coal industry through financial incentives that encourage compliance with regulatory standards.

Sentiment

The sentiment surrounding HB 5522 appears to be generally supportive among members of the coal industry and their advocates. Proponents argue that it represents a necessary step to sustain coal as a critical component of the state's energy landscape. Conversely, the bill may face opposition from environmental groups who could view the tax incentives as a step backward in addressing climate change and promoting cleaner energy alternatives. This highlights the ongoing tension between economic interests associated with traditional energy sources and the growing push for sustainable energy practices.

Contention

Notably, there may be contention concerning the implications of providing such tax credits, particularly regarding how they can influence state efforts to diversify energy sources and mitigate environmental issues related to coal power. Critics may argue that these credits perpetuate reliance on coal at a time when renewable energy solutions are becoming more viable. Overall, the debate around HB 5522 encapsulates a broader discussion about the future of energy production in West Virginia, balancing economic needs with environmental responsibilities.

Companion Bills

No companion bills found.

Previously Filed As

WV HB2120

Relating to the financing of environmental pollution control equipment for coal-fired power plants

WV HB3321

Limiting the imposition of municipal business and occupation taxes

WV HB3538

Relating to limitations on the computation, imposition and collection of the business and occupation tax by municipalities

WV HB2175

Relating generally to coal fired energy plants and wind power

WV HB3133

Create a credit against the severance tax to encourage private companies to make infrastructure improvements to highways, roads and bridges in this state

WV HB3327

Capping amount of moneys to third party vendors who collect business and occupation taxes on behalf of cities

WV HB2258

Relating to power generating plant sites

WV SB658

Clarifying WV follow market-based approach to business and occupation taxation

WV SB168

Providing exemption from state severance tax for coal sold to coal-fired power plants located in WV

WV SB171

Establishing road or highway infrastructure improvement projects or coal production and processing facilities tax credit

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