The proposed bill seeks to incentivize data centers to establish operations 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 operational capacity. 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 facilities. Additionally, it establishes an application process for data centers to document compliance with these criteria and includes provisions for compliance and recapture 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). It also outlines tax implications for generating units, including provisions for retired and new units, and mandates the Tax Commissioner to create rules for equitable tax administration. A significant aspect of the bill is the exemption from taxation for coal-generated electricity sold to qualifying data centers after January 1, 2025, while maintaining tax obligations for electricity used for non-qualifying purposes. The legislation aims to bolster economic growth, job creation, and technological advancement in West Virginia while 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