The proposed bill seeks to incentivize data centers to establish operations in West Virginia by amending 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 operational capacity. The bill offers special property tax treatment, allowing qualifying data centers to be assessed at salvage value, and provides a sales and use tax exemption for eligible data centers. Additionally, it mandates an application process for tax incentives and establishes compliance measures, including recapture provisions for non-compliance. The act is set to take effect for tax years beginning on or after January 1, 2025. 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). It clarifies the process for claiming refundable exemptions, requiring individuals to pay the tax to the vendor before applying for a refund or credit from the Tax Commissioner. The legislation also outlines existing exemptions for various organizations and specifies that certain sales, such as gasoline and special fuel, remain taxable. Overall, the bill aims to streamline tax exemptions while promoting economic growth and supporting local coal industries.

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