March 8, 2024 - A new bill in West Virginia could lead to a major tax break for coal companies. The proposal first came from the House, offering a $50,000 tax break for firms that help improve roads. The Senate Transportation Committee then raised this amount. The new figure could be between $50 million and $60 million.

HB 4722 was the original plan. It aimed to give coal companies a tax deduction. This would help cover the costs of enhancing roads and bridges. These deductions would not impact county and municipal severance revenue. The House strongly supported the bill, with 94 votes in favor and only 3 against.

The Senate committee discussed the bill on a Monday afternoon. They pointed out the bill gives firms a tax credit of up to 50%. This applies to spending of $100,000. Up to 20% of their tax liability can use this credit. Any remaining credits can be used for up to nine years.

There was some confusion about the bill's wording on the deduction. It was unclear if this referred to multiple $100,000 projects a year, or a total of $100,000 in one year. Still, the bill would lower general revenue by $50,000. This would benefit the Road Fund. The Division of Highways would not have to fund that project.

The possible deduction increased when another coal production and processing facility tax credit was found. The House Technology and Infrastructure Committee had left this credit out of the bill before it was sent to the House floor. Bringing this back could boost the credit to the suggested $50 million to $60 million.

This change received support from Chris Hamilton of the West Virginia Coal Association. He said the current state severance tax is higher than nearby areas. This makes the initial bill not as effective. He suggested a minimum total deduction of $1 million per company.

An amendment was proposed to return to the initial House version of the bill. The committee agreed and approved the revised bill with the amendment. The bill will now go to Senate Finance for further review.

Two more bills were also approved. HB 4434 prevents state agencies and local governments from limiting the sale or use of vehicles because of their fuel source. HB 4885 stops protesters from blocking traffic on streets and highways but does not set any penalties for breaking this rule.