(a) Exemption. — Notwithstanding the provisions of §11-13-2o of this code, for taxable years, or portions thereof, beginning on or after January 1, 2020, a merchant power plant is exempt from the business and occupation tax imposed by §11-13-2o of this code on the generating capacity of its generating units located in this state that are owned or leased by the taxpayer and used to generate electricity. When the January 1, 2020, date falls during a taxpayer’s taxable year, the tax liability for that year shall be prorated based upon the number of months before and the number of months beginning on and after January 1, 2020, in that taxable year.
(b) Definition. — As used in this section, the term “merchant power plant” means an electricity generating plant in this state that (1) Is not subject to regulation of its rates by the West Virginia Public Service Commission, (2) sells electricity it generates only on the wholesale market, (3) does not sell electricity pursuant to one or more long-term sales contracts, and (4) does not sell electricity to retail consumers.