January 28, 2026 - Senator Brian Helton has introduced Senate Bill 623, the “West Virginia-Powered Data Center Incentive Act,” which offers substantial tax incentives to large data centers that locate in the state and commit to using coal-generated electricity. The bill would exempt data center equipment from property taxes and reduce business taxes for utilities supplying them.

SB 623 would provide qualifying data centers with major financial incentives:

• Property tax exemption: Data center equipment would be valued at salvage value (the lower of fair market value or 5% of total facility value) for property tax purposes

• Sales tax exemption: Equipment purchases would be exempt from sales and use taxes

• Utility tax credit: Coal-fired electric utilities supplying the data centers would receive B&O tax reductions

To qualify, a data center must invest at least $50 million, create at least 50 new jobs and use coal-generated electricity (either West Virginia coal or from coal plants located in the state) for at least 80% of its operational capacity.

SB 623 was introduced Tuesday and referred to the Committee on Economic Development and the Committee on Finance. The bill will need both committee approvals before advancing to a full Senate vote.