CHARLESTON, W.Va. — The state Senate will be the next stop for a pair of bills offering tax credits to the natural gas industry. The House of Delegates passed both bills Tuesday.
HB 4019, called the Downstream Natural Gas Manufacturing Investment Tax Credit Act of 2020, would allow eligible taxpayers to take a credit against the portion of state income taxes that come from the taxpayer’s investment in a new or expanded downstream natural gas manufacturing facility provided it creates new jobs.
Delegate John Kelly, R-Wood, said the bill is centered on new investment and new jobs.
“There’s no current tax money involved in this bill whatsoever,” Kelly said.
Delegate Mick Bates said the bill could take money away from the state.
“It basically provides for potentially a large amount of future income to be taken off the books,” Bates said.
The credit would be determined by a complicated formula that determines the percentage of new jobs created with the project. The credit will be calculated on a 10-year period. If it’s not all used it can be taken during a second 10-year period.
The bill passed 87-12 and was sent to the Senate.
The second bill, HB 4421, called the Natural Gas Liquids Economic Development Act, would provide a credit to businesses that store or transfer natural gas. The goal of the bill is to attract an ethane cracker plant or storage hub.
Delegate Bill Anderson, R-Wood, said West Virginia has the gas and now it needs the jobs.
“Are we going to put them a pipeline and send them to the Gulf Coast and create the jobs there or our we going to encourage the development in this state of a natural gas storage hub?” Anderson asked.
Kelly said it’s time for the state to take bold steps forward or surrounding states are going to continue to get the natural gas-related jobs.
“West Virginia competes against Ohio. We compete against Pennsylvania and we have to match what they do or they are going to takes the business away from the state of West Virginia,” Kelly said.
The bill was sent to the Senate after being approved 85-14 by delegates.