H. B. 4445


(By Delegates Tucker, Kuhn,

Hutchins, Ennis and Givens)


[Introduced February 8, 2000; referred to the

Committee on Finance.]




A BILL to amend chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article thirteen-p, 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 chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated article eleven-p, to read as follows:
ARTICLE 13P. BUSINESS AND OCCUPATION TAX CREDIT FOR USE OF WEST VIRGINIA COAL IN THE GENERATION OF ELECTRICITY.

§11-13P-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 residents.
§11-13P-2. Definitions.

(a) As used in this article:
(2) "Eligible coal" means coal produced from an eligible mine, as defined in this section.
(3) "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.
§11-13P-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 units;
(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 units; and
(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.
§11-13P-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 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.
§11-13P-5. Limitation of credit; tax commissioner to propose legislative rule.

(a) The credit allowed in this article may not exceed thirty percent of the persons 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.