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Senate bill would remove tax break for West Virginia wind farms

Senate bill would remove tax break for West Virginia wind farms

Yahoo14-03-2025

CLARKSBURG, W.Va. (WBOY) — A Senate Bill introduced in West Virginia last month is looking to do away with a long-standing tax credit for wind turbines in the state.
Senate Bill 439, which was introduced by Senator Chris Rose (R – Monongalia, 02), would repeal §11-6A-5a of the West Virginia state code and is currently under review in the Senate finance committee. Currently, §11-6A-5a designates wind turbines as 'pollution control facilities.' In West Virginia, pollution control facilities are taxed at a much lower rate than other kinds of property, and it's this reduced tax rate that Rose says is 'unfair' to other energy sectors in the state.
'When you're taxed on the real property value of your home, or a coal mine or a gas facility is taxed on theirs, you pay at a much higher tax rate than what the windmills are receiving,' Rose told 12 News in an interview over Zoom. 'This was a special carve out that only they receive, which many of us around the state feel is unfair for the rest of the industry.'
Rose argues that unlike coal mines, windmills aren't required to pay a severance tax on the energy it produces; in West Virginia, a piece of coal is taxed as soon as it is extracted or 'severed' from the ground. Even without being considered a pollution control facility, Rose says wind turbines would still be at an advantage over the coal industry because turbines do not pay the state severance tax.
On the other hand, Senator Joey Garcia (D – Marion, 13) says that SB 439 would be seen as a betrayal to the businesses that have already invested into wind energy in the state with §11-6A-5a in mind.
'It's kind of a slap and an affront to those businesses in West Virginia, including those energy businesses that want to bring new investments to the state of West Virginia,' Garcia told 12 News. 'I think it's had a bad effect already from what I've heard. Just the fact that we're debating the bill means that you have some of these companies wondering, are we going to keep our promises as the state of West Virginia and give them some foreseeability about what's going to happen in the future?'
West Virginia is the country's fifth largest producer of energy according to the U.S. Energy Information Administration, but only about 7% of the state's energy came from renewable sources like wind, solar and hydroelectric. However, wind accounted for more than half of the state's renewable energy production with 428 turbines scattered across the Allegheny Highlands.
West Virginia Department of Agriculture wants to treat 17k acres to kill invasive moth
Instead of looking at one sector's tax treatment, Garcia said he wants the state to pursue an 'all of the above' approach when it comes to energy production, especially when many industries, not just wind production, receive tax incentives in some form or another. But if the state did want to seriously invest in improving renewable energy generation, wind may not even be the best choice for large-scale production.
Legislators have at least shown some interest in nuclear energy when it repealed a ban on nuclear power plants in 2022, but Garcia says nuclear power projects would be a long-term investment that may not provide returns until a decade later.
If you want to follow SB 439 for yourself, you can track the bill on the West Virginia state legislature website.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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