The proposed bill establishes a tax credit aimed at encouraging investment in road and highway infrastructure improvement projects, as well as coal production and processing facilities in West Virginia. It introduces a new article, 11-13NN, which details the credit's title, legislative findings, definitions, and the application process. Eligible taxpayers, specifically those subject to the severance tax, can receive a credit equal to 50% of their qualified expenditures, with the ability to carry forward any unused credits for up to ten years. To claim the credit, taxpayers must obtain certification from the Transportation Secretary, and there is a cap of $100,000 on total expenditures eligible for the credit.

Additionally, the bill outlines a structured framework for determining the applicable percentage of costs associated with coal production and processing facilities, which varies based on the useful life of the property. The applicable percentage ranges from 0% for properties with a useful life of less than four years to 100% for properties with a useful life of eight years or more. It also includes provisions for the transfer of tax credits to successor businesses and mandates that taxpayers maintain adequate records to substantiate their claims. The legislation aims to promote economic growth and capital investment in the coal industry while enhancing the state's infrastructure, with the tax credits set to take effect in January 2027.

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