The proposed bill introduces the "West Virginia-Powered Data Center Incentive Act," which aims to attract data centers to the state 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 favorable property tax treatment, allowing qualifying data centers to be assessed at salvage value, and includes a sales and use tax exemption for eligible facilities. An application process is mandated for taxpayers seeking these incentives, along with compliance measures that include a recapture provision for benefits if operational or job creation thresholds are not met within five years.

Additionally, the bill amends existing tax exemptions by introducing a new category for sales of equipment and tangible personal property used in the operation and maintenance of qualifying data centers. A significant insertion in the bill is the exemption of coal-generated electricity sold to qualifying data centers from taxation after January 1, 2025. The bill also outlines various exemptions related to sales and services for educational institutions, charitable organizations, and specific agricultural products, while ensuring that certain sales, such as gasoline and special fuel, remain taxable. The amendments are set to take effect on July 1, 2018, with specific provisions regarding the State Road Fund taking effect upon passage.

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