Bill would create tax credits to develop post mining sites | WV News ... - WV News

MORGANTOWN— Legislation in the West Virginia Senate would, if passed, make it easier for businesses to set up shop on post-coal mining sites throughout the state.

Senate Bill 12 would create five-year tax credits for businesses locating on those sites. This would apply to any small business, corporation, limited liability company or unincorporated organization that moves its principal place of business to a post-mine site within West Virginia and employs a minimum of 10 workers that work at least 32 hours per week.

“For those tax years beginning on or after January 1, 2019, an eligible business entity will be allowed a tax credit in the amount of 50 percent of that entity’s capital expenditures at the post-coal-mine site for the first five taxable years during which the entity’s principal place of business is located on the post-coal-mine site within this state,” the bill reads.

SB 12 states that businesses benefiting from other state economic development programs or incentives that result in a reduction of their income tax liability due shall not be eligible for the tax credit. It also states that if the amount of the credit exceeds the taxpayer’s tax liability for the taxable year, the amount which exceeds the tax liability may be carried over.

The legislation was introduced in the Senate on Feb. 10 and sent to the Economic Development Committee that day. As of Feb. 22, the bill was still in committee. SB 12’s lead sponsor is Sen. Ron Stollings, D-Boone, with senators Bob Beach, D-Monongalia, and Richard Ojeda, D-Logan, co-sponsoring.

“Our economy in the southwest coalfields lost 40 percent of its economy. In any other condition, we would be in panic mode or something like that, so I look at this as something that we absolutely have to do, all hands on deck, to diversify our economy,” Stollings said. “We, the southwest coalfields, have given so much money in the form of coal severance tax over the many years that we need something. We have these tracts of land that we’re no longer topographically challenged, but we’re still infrastructure challenged. It’s the perfect storm to invest in roads to these sites.”

Stollings said some of the more remote sites would be conducive to hog farms, while others close to U.S. 119 or Charleston could make for “wonderful business parks.” Looking at other examples of post-coal-mine land use, the senator pointed to the FBI Criminal Justice Information Services center in Harrison County or Mylan Park in Monongalia County.

Mylan Park is now home to Chaplin Hill Business Park, a school, the local school district’s bus depot, nonprofit organizations such as Operation Welcome Home and Stepping Stones, recreational facilities and a new track and aquatic center is under construction. The park has also hosted county fairs, the MountainFest Motorcycle Rally and the STIHL Timbersports Series, among others.

“If you look back at the history of things, Mylan Park has sat as a collaboration point for a lot of things,” said Eldon Callen, vice president of the Morgantown Area Chamber of Commerce. “Mylan Park has developed, I believe, to a point that what’s going on out there has potential to last for decades.”

Callen said mining operations in the area ceased in the early 1980’s and it wasn’t until about the early or mid 1990’s that the land started to be developed for it’s current use.

Kris Mitchell, director of the Boone County Community & Economic Development Corporation, said roads aren’t the only impediment to developing post coal mine sites in southern West Virginia. They would also need water, gas, sewer, broadband and electrical infrastructure as well but that SB 12 would be a step in the right direction.

“It’ll loosen restrictions, maybe override some hesitation companies might have. This may be the push that they need,” she said, noting the potential such sites have. “Former mine sites are some of the only flat land in West Virginia.”

Mitchell noted that West Virginia’s position on the map makes it a prime place to do business since its within 500 miles of more than half the country’s population.

“I think this is a great tool in our tool box,” Stollings said regarding SB 12. “We want to encourage capital expenditure. We would love to get some what I would call anchor industries, anchor businesses that’re willing to invest millions of dollars with the idea that over the next five years they can get significant part of their capital investment back in the form of a tax credit.”

He said the bill was designed in a way that businesses could still receive a tax credit if they didn’t make as much money during their first year in operation or if they wanted to invest more capital during their second year and so on.