This bill proposes the repeal of section 11-13-2q of the Code of West Virginia, which currently provides a business and occupation tax exemption for certain coal-fired merchant power plants based on their generating capacity. The new provisions establish a framework for the recomputation of taxable generating capacity for coal-fired generating units in operation before January 1, 1995. Specifically, starting July 1, 2021, owners or operators of these units may elect to recompute their taxable generating capacity to 45 percent of the official capability, with the stipulation that they must keep the units operational until at least July 1, 2025.

Additionally, the bill introduces a recapture tax that will be imposed if the coal-fired generating units cease operation before July 1, 2025, requiring owners to remit back any tax savings realized during the period from July 1, 2021, to the date of closure. For coal-fired generating units regulated entirely by another state, beginning July 1, 2026, the tax will revert to 100 percent of the official capability. The bill also clarifies definitions related to taxable generating capacity and official capability, ensuring consistency with existing law while modifying certain aspects for the specified taxable periods.