The proposed bill establishes a tax credit aimed at encouraging investment in road and highway infrastructure improvement projects, 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 taxpayers subject to the severance tax. Eligible taxpayers can receive a credit equal to 50% of their qualified expenditures, applicable against their annual severance tax liability, with the option to carry forward unused credits for up to ten years. Taxpayers must submit an application for project certification to the Transportation Secretary before construction begins, including comprehensive project details and cost breakdowns.

Additionally, the bill outlines a structured framework for determining the applicable percentage of costs related to coal production and processing facilities based on the useful life of the property, ranging from 0% for properties with a useful life of less than four years to 100% for those with a life of eight years or more. It includes provisions for transferring tax credits to successor businesses, ensuring continuity despite changes in ownership, and mandates the maintenance of adequate records to identify qualified property. The bill also specifies penalties for record-keeping failures and addresses the forfeiture of unused tax credits if property is disposed of or ceases to be used before the end of its useful life. The tax credits will take effect for tax years beginning on or after January 1, 2025.

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