H. B. 4602


(By Delegate Cann)

[Introduced February 22, 2000; referred to the

Committee on Finance.]





A BILL to amend article twenty-four, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section twenty-five, relating to providing a tax credit to electric power generators for use of coal mined in West Virginia.

Be it enacted by the Legislature of West Virginia:
That article twenty-four, 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 section twenty-five, to read as follows:
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-25. Credit for use of domestic coal by electric power generators.

(a) Beginning the first day of January, two thousand one, any corporation generating electricity shall be allowed a credit against the primary tax imposed by the provisions of this article in the amount of three dollars per ton of coal mined from small mining operations in West Virginia and used in the generation of electric power for sale, profit or commercial use. The credit allowed shall not exceed the amount of tax liability of the corporation. Any tax credit not usable for the taxable year in which it is earned may be carried over to the extent usable for the next five succeeding taxable years or until the full credit is used, whichever is sooner.
(b) For purposes of this article, "small mining operations" means: (1) West Virginia mines operated by operators who establish that their probable total annual coal production from all locations during any consecutive twelve-month period, either during the term of the permit or during the first five years after issuance of the permit, whichever period is shorter, will not exceed three hundred thousand tons, as determined pursuant to rules promulgated by the division; and (2) otherwise qualify for the small operator assistance program authorized under the federal surface mining control and reclamation act of 1977, as amended, and the federal regulations promulgated thereunder, as amended.



NOTE: This bill would provide a tax credit against corporate net income tax to electric power generators for the use of each ton of coal mined in West Virginia. Small mining operation is defined.

This section is new; therefore, strike-throughs and underscoring have been omitted.