
H. B. 2241

(By Delegates Cann, Kuhn, Kominar and Coleman)

[Introduced January 15, 2003; 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-h, relating
to providing a business and occupation tax credit to electric
power generators for use of coal mined in West Virginia by
"small mining operations."
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 article, designated article thirteen-h, to read as follows:
ARTICLE 13H. BUSINESS AND OCCUPATION TAX CREDIT FOR USE OF
DOMESTIC COAL FROM SMALL MINING OPERATIONS BY
ELECTRIC POWER GENERATORS.
§11-13H-1. Credit for use of domestic coal from small mining operations by electric power generators.

Notwithstanding any provision in this code to the contrary,
beginning the first day of January, two thousand three, any
corporation generating electricity shall be allowed a credit
against its liability for tax under section two-m, article thirteen
of this chapter in the amount of three dollars per ton of coal
mined from small mining operations in West Virginia and used by the
corporation in the generation of electric power for sale, profit or
commercial use. The credit allowed may 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.
§11-13H-2. "Small Mining Operations" defined.

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 existing 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 business and occupation tax
credit to electric power generators for the use of each ton of coal
mined in West Virginia by "small mining operations."

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