Senate Bill No. 95
(By Senators Cann, Plymale and Williams)
[Introduced February 13, 2013; referred to the Committee on
Energy, Industry and Mining; and then to the Committee on
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §11-13H-1 and §11-
13H-2, all 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 the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new article, designated §11-13H-1 and §11-13H-
2, all 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 January 1, 2014, any corporation generating electricity
is allowed a credit against its liability for tax under section
two-m, article thirteen of this chapter in the amount of $3 per ton
of coal mined from small mining operations in West Virginia as the
term is defined in section two of this article 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
West Virginia mines operated by operators who:
(1) 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 300,000 tons, as determined pursuant to
rules promulgated by the division; and
(2) 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: The purpose of this bill is to 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
This article is new; therefore, strike-throughs and
underscoring have been omitted.