Source: http://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=sb575%20intr.htm&yr=2011&sesstype=RS&i=575
Timestamp: 2018-03-24 09:11:35
Document Index: 442255988

Matched Legal Cases: ['§11', '§11', '§11', '§11', '§11', '§24', '§11', '§11', '§11', '§11', '§11', '§24', '§11', '§11', '§11']

[Introduced February 21, 2011; referred to the Committee on Energy, Industry and Mining; and then to the Committee on Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §11-13BB-1, §11-13BB-2, §11-13BB-3, §11-13BB-4 and §11-13BB-5; and to amend and reenact §24-2-1j of said code, all relating to the establishment of tax credits against the coal severance tax; payments by taxpayers claiming the credit to utilities providing electric service to energy-intensive industrial consumers at special rates; legislative findings; defining certain terms; setting forth the amount of the tax credits; when the tax credits may be taken; how the tax credits are to be calculated and allocated; how the payments triggered by the tax credits are to be made to utilities; and when the provisions authorizing the tax credit expire.
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new article, designated §11-13BB-1, §11-13BB-2, §11-13BB-3, §11-13BB-4 and §11-13BB-5; and that §24-2-1j of said code be amended and reenacted, all to read as follows:
ARTICLE 13BB. ENERGY INTENSIVE INDUSTRIAL CONSUMERS REVITALIZATION TAX CREDIT.
This article may be cited as the “Energy Intensive Industrial Consumers Revitalization Tax Credit.”
(e) It is in the public interest for the state to assist energy intensive industrial consumers of electric power determined to be in need of special rate assistance pursuant to section one-j, article two, chapter twenty-four of this code, in order to encourage them to locate, to remain in operation, or to resume operation, in West Virginia on a long-term basis, by employing a portion of the coal severance tax revenues to reduce such industrial consumers’ electric power costs without imposing an undue burden on electric utilities or their other customers.
(f) In furtherance of its findings, the Legislature’s purpose in this article is to create a credit, as provided in section three of this article, against the coal severance tax imposed and levied under the provisions of subsections (a) and (b), section three, article thirteen-a of this chapter, of which the primary ultimate economic beneficiary shall be energy intensive industrial consumers of electric power determined to be in need of special rate assistance pursuant to section one-j, article two, chapter twenty-four of this code.
§11-13BB-3. Amounts of credits; Limitations.
Every taxpayer which is a supplier of coal to a West Virginia electric utility providing a special rate to one or more energy intensive industrial consumers of electric power pursuant to section one-j, article two, chapter twenty-four of this code and which is subject to paying a full five percent tax on the privilege of severing coal levied and imposed by subsections (a) and (b), section three, article thirteen-a of this chapter, prior to the application of any other credits against the tax, shall be entitled to a credit against that tax in an amount determined by the Public Service Commission pursuant to section one-j, article two, chapter twenty-four of this code, subject to the following limitations: (a)The total credits available to all taxpayers under this section shall not exceed $50 million in any calendar year; and (b) the total credits available to any taxpayer in a given calendar year shall not exceed ninety-three percent of that taxpayer’s tax liability imposed and levied under subsections (a) and (b) section three, article thirteen-a of this chapter, so as to preserve undiminished the seven percent of total coal severance tax revenues that is apportioned among counties and municipalities pursuant to section six, article thirteen-a of this chapter.
§11-13BB-4. Required payments to public utilities.
§11-13BB-5. Expiration.
The provisions of this article respecting the generation of tax credits for new calendar years shall expire ten years from the effective date of this article.
(6) To encourage the continued development, construction, operation, maintenance and expansion in West Virginia of industrial plants and facilities which are energy intensive consumers of electric power, the commission may establish special rates under this section that in its judgment are necessary or appropriate for the continued, new or expanded operation of energy intensive industrial consumers and that can reasonably be expected to support the long-term operation of energy intensive industrial consumers, and that do not impose an unreasonable burden upon electric public utilities or their other customers.
(7) To assist the commission in the exercise of its authority to establish special rates under this section, the Legislature creates in article thirteen-bb, chapter eleven of this code a tax credit mechanism to provide a source of funding to support special rates of which the commission may avail itself in exercising said authority.
(2) Create or retain at least twenty-five full time jobs in West Virginia;
(g) If the commission determines that a special rate for an energy intensive industrial consumer of electric power would create a revenue shortfall which it is not reasonable or equitable to allocate among a utility’s other customers in its entirety, the commission may consider the availability of tax credits and payments required to be made to public utilities pursuant to article thirteen-bb, chapter eleven of this code to reduce or eliminate a revenue shortfall. The commission shall identify in each proceeding in which it establishes a special rate the amount of any unallocated revenue shortfall in need of funding pursuant to article thirteen-bb, chapter eleven of this code to defray it and shall project the amount of the gross tax credits needed for that purpose after taking into consideration the net amounts of such credits that are required to be paid to utilities pursuant to subsection (a), section four, article thirteen-bb, chapter eleven of this code and the limits specified in section three, article thirteen-bb, chapter eleven of this code. The commission’s determination as to the amount of tax credits on which it relies in establishing a given special rate, shall constitute an authorization for each supplier of West Virginia coal to the utility offering that special rate to claim its allocated share of such total amount of tax credits. The allocated share shall be calculated by the affected public utility, subject to the approval of the commission.
(h) The commission shall include in the annual report to the Legislature which it makes pursuant to subsection (d), section one, article one of this chapter a report on the tax credits being employed pursuant to article thirteen-bb, chapter eleven of this code to help fund special rates created under this section.
NOTE: The purpose of this bill is to provide a tax credit for electric utilities that provide electric service to energy intensive industrial consumers under a special rate that is approved by the Public Service Commission, of which the primary ultimate economic beneficiary will be the energy intensive industrial consumer. Each taxpayer paying five percent coal severance tax would be entitled to a credit against that tax as determined by the Public Service Commission, in order to provide for a special rate for energy intensive industrial consumers in cases where such special rate would create a revenue shortfall to the electric utility providing such special rate, which would not be reasonable to allocate to other customers of the utility. The taxpayer claiming the tax credit must make equal payment to the electric utility providing the electric service to the energy intensive industrial consumer receiving the special rate. In no event may the amount of the tax credit exceed $50 million in any year in respect of any individual special rate.