The proposed bill establishes a tax credit aimed at encouraging investments in road and highway infrastructure improvements as well as coal production and processing facilities in West Virginia. It introduces a new article, 11-13NN, which details the credit's title, legislative findings, definitions, and the application process for eligible taxpayers. The credit allows taxpayers to offset their annual severance tax liability based on a percentage of their expenditures on qualified projects, with provisions for carrying forward any unused credits for up to ten years. Key requirements include obtaining certification from the Transportation Secretary before starting construction and adhering to limits on the total credits authorized.

Additionally, the bill outlines specific rules for determining qualified expenditures, including labor, materials, and property related to the projects. It includes provisions for the transfer of tax credits to successors in cases of business changes, as well as penalties for failing to maintain proper records of qualified property. The legislation also stipulates that unused tax credits will be forfeited if the property is disposed of or no longer used before the end of its useful life. The effective date for these tax credits is set for tax years beginning on or after January 1, 2026, with the overall goal of promoting economic growth and infrastructure development in the state.

Statutes affected:
Introduced Version: 11-13NN-1, 11-13NN-2, 11-13NN-3, 11-13NN-4, 11-13NN-5, 11-13NN-6, 11-13NN-7, 11-13NN-8, 11-13NN-9, 11-13NN-10, 11-13NN-11