HB 4035
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
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill creates a tax credit for coal-fired electric generating units in West Virginia to help offset the costs of complying with environmental regulations. The credit is 35% of expenses incurred for installing, repairing, or maintaining equipment designed to control air, water, or land pollution. The credit cannot reduce a taxpayer's tax liability by more than 50%, and unused portions can be carried forward for up to five years. The bill aims to incentivize investment in pollution control equipment at these facilities.
Key provisions
- A 35% tax credit is authorized for expenses related to Environmental Pollution Control Equipment.
- The credit applies to coal-fired electric generating units that are not exempt from the business and occupation tax.
- ‘Environmental Pollution Control Equipment’ includes equipment designed to comply with environmental regulations, such as carbon capture and reduction technologies.
- The credit cannot reduce a taxpayer’s tax liability by more than 50% in any given year.
- Unused credits can be carried forward for up to five years.
- The Tax Commissioner is authorized to create regulations to implement the credit.
Who is affected
- Coal-fired electric generating units
- Businesses subject to the West Virginia Business and Occupation Tax
- Electric utilities
- The State of West Virginia
Notable changes
- Provides a financial incentive for investment in environmental control technology at coal-fired power plants.
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