H. B. 2207
(By Delegate Cann)
[Introduced January 9, 2008; referred to the
Committee on Finance.]
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 the first day of January, two thousand seven, 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 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 three hundred thousand 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
operations."
This article is new; therefore, strike-throughs and
underscoring have been omitted.