H. B. 3226
(By Delegates Tucker, Yost, Caputo and Butcher)
[Introduced March 25, 2005; referred to the
Committee on Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated
§11-13V-4 and §11-13V-5
, all relating to providing
a credit from the business and occupation tax for generating
or producing electric power in West Virginia using coal
produced in West Virginia.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new article, designated
§11-13V-4 and §11-13V-5
, all to read as follows:
ARTICLE 13V. BUSINESS AND OCCUPATION TAX CREDIT FOR USE OF WEST
VIRGINIA COAL IN THE GENERATION OF ELECTRICITY.
§11-13V-1. Legislative finding.
The Legislature finds that there are sound economic purposes
for encouraging the use of coal mined in this state in the production of electricity produced in this state. Encouraging
greater utilization by power plants in West Virginia of coal
produced by mines located in this state is in the public interest
and promotes the general welfare of the people of this state, in
that it will increase employment opportunities for West Virginia
(a) As used in this article:
(1) "Eligible coal" means coal produced from an eligible mine,
as defined in this section.
(2) "Eligible mine" means any mine located, in whole or part,
in this state.
(b) Other terms used in this article, have the meanings
ascribed to them in section four, article ten of this chapter or
section one, article thirteen of this chapter unless the context in
which used in this article clearly requires another meaning.
§11-13V-3. Credit allowed; amount of credit; effective date.
(a) An electric power company that generates electricity at a
power plant located in this state, that uses eligible coal to
generate electricity, is allowed a credit, as determined under
subsection (b) of this section, against its liability for tax under
section two-m, article thirteen of this chapter.
(b) The credit allowed by this section is:
(1) One dollar for each ton of coal burned that has sulfur dioxide emissions of at least one and two-tenths pounds and less
than three pounds of sulfur dioxide per million British thermal
(2) Two dollars for each ton of coal burned that has sulfur
dioxide emissions of at least three pounds and less than four and
seven-tenths pounds of sulfur dioxide per million British thermal
(3) Three dollars for each ton of coal burned that has sulfur
dioxide emissions of at least four and seven-tenths pounds of
sulfur dioxide per million British thermal units.
(c) The credit allowed by this section applies to business and
occupation tax liabilities for calendar months beginning after the
thirtieth day of June, two thousand and ending before the first day
of July, two thousand two.
§11-13V-4. Certification by producers and sellers of coal.
(a) The person selling coal produced from an eligible mine
shall certify to the person generating electric power purchasing
the coal the amount of the coal that was produced from an eligible
mine and the number of pounds of sulfur dioxide emissions per
million British thermal units of the coal.
(b) If a producer of eligible coal sells that coal to a
purchaser for resale to a person generating electric power in this
state, the producer shall certify to the purchaser of the amount
the coal that was produced from an eligible mine and the number of pounds of sulfur dioxide emissions per million British thermal
units of the coal.
(c) All certifications shall be in the form prescribed by the
Tax Commissioner and provide information the Commissioner considers
necessary for determining compliance with this article. An
employee who signs the certification on behalf of a proprietorship,
corporation, partnership or a group or combination acting as a unit
is presumed to have authority to make and sign the certification on
behalf of his or her employer.
§11-13V-5. Limitation of credit; Tax Commissioner to propose
(a) The credit allowed in this article may not exceed thirty
percent of the person's tax liability under section two-m, article
thirteen of this chapter per year. The credit is not refundable,
and may not be carried forward or backward to other tax years.
(b) The Tax Commissioner shall propose rules for legislative
approval in accordance with the provisions of article three,
chapter twenty-nine of this code regarding the applicability,
method of claiming of the credit, recapture of the credit and
documentation necessary to claim the credit. The Commissioner may
promulgate the initial rules as emergency rules in order to
facilitate the implementation of the provisions of this article.
NOTE: The purpose of this bill is to provide a credit from the
B & O Tax for power plants located in West Virginia that burn coal
produced in West Virginia for the generation of electricity.
This article is new; therefore, strike-throughs and
underscoring have been omitted.