Establishing road or highway infrastructure improvement projects or coal production and processing facilities tax credit
Impact
If enacted, SB270 would amend existing state laws by introducing a structured tax incentive that encourages businesses to invest in infrastructure improvements and coal production facilities. Specifically, the act defines key terms and sets parameters for the calculation and certification of tax credits, allowing taxpayers to claim credits against their severance tax liability. This could lead to increased activity in the construction and coal sectors, contributing to economic revitalization in areas heavily reliant on coal production. The credit is designed to cover a significant portion of the investment costs, which could result in substantial financial relief for businesses undertaking these upgrades.
Summary
Senate Bill 270, titled the 'West Virginia Road and Highways Infrastructure Improvements and Coal Production and Processing Facilities Tax Credit Act', aims to incentivize private investment in road and highway infrastructure as well as coal production and processing facilities in West Virginia. The bill outlines a tax credit mechanism for eligible taxpayers who undertake qualified expenditures in these areas, which is expected to stimulate economic growth, enhance local infrastructure, and support the coal industry. The proposal establishes specific guidelines for what constitutes a qualified project and how tax credits can be applied and carried forward over time.
Sentiment
The general sentiment around SB270 appears to be supportive among stakeholders in the coal and construction industries, who see it as a necessary measure to revitalize the sector and improve critical infrastructure. State officials and policymakers advocating for the bill argue that meaningful investment in infrastructure is essential for improving safety and productivity, as well as attracting further economic development. However, there may be concerns among environmental advocacy groups regarding the potential impacts of increased coal production and a perception that such measures could undermine efforts to transition towards alternative energy sources.
Contention
One notable point of contention may arise from the balance between promoting economic development through the coal industry and addressing the environmental implications of such support. While proponents of SB270 argue that facilitating coal production is crucial for economic stability in certain regions, opponents could contend that increased reliance on coal contradicts broader environmental goals. Additionally, the cap on the maximum amount of credits authorized per project may spark debate about the adequacy of support provided and the implications for long-term infrastructure funding.
Create a credit against the severance tax to encourage private companies to make infrastructure improvements to highways, roads and bridges in this state
Relating to the consumers sales and service tax and returning the refundable exemption for sales of construction and maintenance materials acquired by a second party for use in Division of Highways projects
Create a credit against the severance tax to encourage private companies to make infrastructure improvements to highways, roads and bridges in this state
Create a credit against the severance tax to encourage private companies to make infrastructure improvements to highways, roads and bridges in this state
Create a credit against the severance tax to encourage private companies to make infrastructure improvements to highways, roads and bridges in this state