This bill proposes the addition of a new article to the Code of West Virginia, specifically aimed at promoting the in-state production of value-added forest products. It establishes a framework for tax credits that manufacturers can receive for transforming West Virginia-harvested roundwood into qualified non-roundwood products. The bill outlines definitions for key terms, eligibility criteria, and compliance standards, as well as the application process for these tax credits. The credits can be applied against corporate net income tax or personal income tax for owners of pass-through entities, with a structured incentive schedule based on the volume of green tons processed.

Additionally, the bill introduces a temporary enhanced tax credit for new facilities and expansions, providing higher rates for a limited period. It includes provisions for self-reporting by manufacturers, random audits by the Division of Economic Development, and penalties for falsification or misrepresentation related to tax credit claims. The Division is also granted rule-making authority to implement the article effectively. Overall, the bill aims to stimulate the local economy by incentivizing the processing of forest products within West Virginia while ensuring compliance and accountability among manufacturers.

Statutes affected:
Introduced Version: 5B-12-1, 5B-12-2, 5B-12-3, 5B-12-4, 5B-12-5, 5B-12-6, 5B-12-7, 5B-12-8