SB 893
Providing tax credits for expenditures and activities related to biochar manufacturing
Take action
Record your position on this measure.
Sign in to record your position, submit testimony, or contact your legislator.
Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill creates a tax credit for West Virginia businesses that manufacture biochar. Biochar is a charcoal-like substance produced from biomass that can be used to sequester carbon dioxide. The credit is designed to incentivize investment in biochar production facilities by aligning state tax policy with existing federal tax incentives for carbon capture and storage. The credit is tied to the amount of federal carbon oxide sequestration credits earned by the facility, and it’s available for up to 12 years after the facility begins operation.
Key provisions
- Provides a 10% state income tax credit for biochar production.
- The credit is linked to federal carbon oxide sequestration credits earned by the facility.
- The credit is available for up to 12 years after the facility’s start date.
- Facilities must commence commercial operations after July 1, 2025, to qualify.
- Eligible taxpayers must provide documentation of federal carbon oxide sequestration credits.
- Independent verification of biochar carbon content and permanence is required.
- The credit is available to electing small business corporations and partnerships.
- Unused credits can be carried forward or back, subject to IRS rules.
Who is affected
- Biochar manufacturing companies
- West Virginia businesses
- Investors in biochar facilities
- Landowners and forestry operations
- The State of West Virginia
Notable changes
Arguments in favor
Reasons to support this legislation.
No arguments in favor have been submitted.
Submit yoursArguments opposed
Reasons to oppose this legislation.
No arguments opposed have been submitted.
Submit yours