The proposed bill seeks to incentivize the establishment of data centers in West Virginia by amending existing tax laws and introducing the "West Virginia-Powered Data Center Incentive Act." Key provisions include eligibility criteria for data centers, which must invest a minimum of $50 million, create at least 50 jobs, and utilize coal-generated electricity for at least 80% of their operations. The bill offers special property tax treatment, allowing qualifying data centers to be assessed at salvage value for ad valorem property taxation, and provides a sales and use tax exemption for eligible data centers. Additionally, it mandates an application process for taxpayers seeking these incentives and includes compliance measures that require repayment of benefits if operational or job creation requirements are not met within five years. Furthermore, the bill introduces a new exemption for sales of equipment and tangible personal property used in the operation and maintenance of qualifying data centers, marked as (51) Sales of equipment and tangible personal property purchased for use in the operation and maintenance of a qualifying data center, as defined in 11-6H-3 of this code.. It also specifies that individuals claiming exemptions must first pay the tax to the vendor before applying for a refund or credit from the Tax Commissioner. The legislation aims to clarify tax responsibilities for various generating units while supporting the coal industry and promoting economic growth through the establishment of data centers in the state. The amendments are set to take effect on July 1, 2018, with certain provisions regarding tax transfers effective from January 1, 2018.

Statutes affected:
Introduced Version: 11-13-2o, 11-15-9, 11-6N-1, 11-6N-2, 11-6N-3, 11-6N-4, 11-6N-5, 11-6N-6, 11-6N-7, 11-6N-8, 11-6N-9, 11-6N-10