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Committee backs state tax credit for biochar facilities, referring bill to Finance
Summary
The Senate Economic Development Committee reported Senate Bill 893 to the full Senate with a recommendation to pass and referred the bill to the Finance Committee; counsel said the bill would make qualifying biochar facilities eligible for a state corporate net income tax credit equal to 10% of the federal biochar sequestration credit (effective July 1, 2026, for 12 years) and limit state credits so they cannot reduce liability by more than 50%.
The Senate Economic Development Committee voted to report Senate Bill 893 to the full Senate with a recommendation that it pass and that it be referred first to the Committee on Finance.
Committee counsel told the committee the bill is intended to promote private investment in biochar manufacturing facilities in West Virginia by providing a state corporate net income tax credit to manufacturers who operate qualifying biochar facilities. "Beginning on the effective date of the bill, which is 07/01/2026, and thereafter for a period of 12 years, biochar facilities in West Virginia that qualify for the federal tax credit would be eligible to claim a state tax credit against their corporate net income tax," counsel said.
Counsel said the amount of the state credit is limited to 10% of the federal tax credit and may not reduce income tax liability by more than 50%; the credit may be carried forward or carried back to any tax year beginning after 07/01/2026. Taxpayers must submit documentation to the tax commissioner to claim the credit and the commissioner is authorized to propose rules to implement the program. Counsel also noted that a fiscal note has been requested and that the bill is secondarily referred to Finance.
There was no recorded public opposition or amendment activity during the committee's consideration. After discussion, the vice chair moved to report Senate Bill 893 to the full Senate with the recommendation that it do pass and be first referred to the Committee on Finance; the motion was adopted by voice vote.
