Tax Exemption for Wind Energy Generation

Last updated: August 28, 2018

Program Overview

Implementing Sector:State
Category:Financial Incentive
State:West Virginia
Incentive Type:Corporate Tax Exemption
Administrator:West Virginia Division of Energy
Eligible Renewable/Other Technologies:Wind (All), Wind (Small)

Authorities

Name:W. Va. Code § 11-13-2o
Date Enacted:5/2001
Effective Date:7/2001

Summary

In March 2007, West Virginia enacted legislation (SB 441) amending its tax law concerning the business and operation (B&O) tax for wind turbines. Although SB 441 increased the taxable value of wind turbine generating capacity, the taxation level is still significantly lower than that of most other types of electricity generation. For most types of newly constructed electricity-generating units, the B&O tax is calculated by multiplying a pre-determined dollar amount by 40% of the nameplate capacity rating of the generating unit. However, the B&O tax on wind turbines is multiplied by only 12% of the nameplate capacity rating. This results in an effective B&O tax rate on wind powered turbines that is about 30% of the effective tax rate of most other types of newly constructed generating units.

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