By Erin Beck, Register-Herald
CHARLESTON, W.Va. – The 2020 legislative session concluded Saturday, following a year of work on a bill to address to the state’s foster care crisis and arguments over $16.9 million in funding for it, and another round of overwhelming support for at least $28 million in tax breaks for fossil fuel industries.
“It seems that we’ve got our priorities mixed up,” said Del. Cindy Lavender-Bowe, D- Greenbrier and a co-sponsor of the foster care bill. “However, I am very proud of the foster care bill and that we were able to come to a consensus and it’s going to be fully funded.”
Four bills to give tax breaks to fossil fuel industries passed earlier this session, including tax cuts for coal-fired power plants and for natural gas storers and transporters. Senate Bill 793, sponsored by Sen. Randy Smith, R- Tucker, gives tax cuts to coal-fired power plants and is estimated to cost $16 million. Economists continue to predict long-term declines in the coal industry.
House Bill 4019, sponsored by Del. John Kelly, R- Wood, was estimated to cost $9 million and is aimed at bringing a natural gas cracker plant to West Virginia. It cuts personal income and corporate income taxes for potential downstream manufacturers of natural gas that make a qualified investment and create at least five jobs. House Bill 4439, sponsored by Del. Eric Householder, R- Berkeley, lets affiliated coal companies that aren’t seeing increases in coal production still claim a tax credit on severance tax related to new investments and was estimated to cost $3 million.
The total could be more than $28 million, because it’s unclear how many companies will take advantage of the laws.
Last year, lawmakers cut the severance tax on thermal coal, also known as steam coal, from 5 percent to 3 percent over three years.
In special session in July, lawmakers also rushed through a bill that cuts $12.5 million in annual state revenue to bail out a bankrupt company in hopes of keeping an uncompetitive coal-fired power plant running. House Bill 207 exempted “merchant power plants” from the state business and occupation tax. As defined in the bill, the Pleasants Power Station, employing about 160 people in the Pleasants County area, was be the only plant to qualify.
Lavender-Bowe said “we have bills that are put forward to cut revenue, and then we turn around and talk about how we can’t afford to do things.” …