The proposed bill introduces the "West Virginia-Powered Data Center Incentive Act," which aims to attract data centers to West Virginia by offering economic incentives. Key eligibility criteria for data centers include a minimum capital investment of $50 million, the creation of at least 50 new jobs, and the requirement to utilize coal-generated electricity for at least 80% of their operational capacity. The bill also provides special property tax treatment, allowing qualifying data centers to be assessed at salvage value for property taxation, and includes a sales and use tax exemption for eligible data centers. An important insertion in the bill is the exemption of coal-generated electricity sold to qualifying data centers from taxation after January 1, 2025, with specific conditions regarding its use.

Additionally, the bill outlines an application process for taxpayers seeking these incentives, compliance measures for maintaining eligibility, and provisions regarding the taxation of generating units, including retired and new units. It mandates that taxpayers notify the Joint Committee on Government and Finance 18 months in advance if a generating unit is retired or placed in inactive reserve. The bill also amends existing tax exemptions to include a new category for sales of equipment and tangible personal property used in the operation and maintenance of qualifying data centers. Overall, the legislation aims to enhance the economic environment for data centers and related sectors while ensuring compliance with tax regulations.

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