This bill proposes the addition of a new section, 11-24-45, to the Code of West Virginia, which establishes a tax credit against the state corporation net income tax for businesses involved in the establishment and operation of biochar manufacturing facilities. The legislation aims to align state tax policy with federal incentives, specifically the federal income tax credits available under 26 U.S.C. 45Q for carbon oxide sequestration. The bill outlines definitions for key terms, eligibility criteria for taxpayers, and the specifics of the tax credit, which is set at 10% of the federal credit for carbon oxide sequestration related to biochar production.

The proposed tax credit is designed to be available for up to 12 years for qualified facilities that commence operations after July 1, 2025. It includes limitations on the amount of credit that can be claimed in a taxable year, ensuring that it does not exceed 50% of the taxpayer's corporation net income tax liability. Additionally, the bill mandates verification requirements for taxpayers to claim the credit, including documentation of federal tax credit eligibility and independent verification of biochar production standards. The Tax Commissioner is authorized to create rules for the administration of this section, further facilitating the implementation of the tax credit to encourage investment in biochar manufacturing in West Virginia.

Statutes affected:
Introduced Version: 11-24-45