H. B. 2407
(By Delegates Cann and Kominar)
[Introduced February 16, 2005; 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 five, 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
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: 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.