H. B. 2015
(By Delegate Cann)
[Introduced February 14, 2001; 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 two, 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.