HB656:

Income tax, state and corporate; creates tax credit for coal refuge energy and reclamation, report.

Bill Summary:

Coal refuse energy and reclamation tax credit.
Creates a nonrefundable individual and corporate income tax credit
for taxable years 2023 through 2027 equal to $4 per ton of qualified
coal refuse used to generate electricity at an eligible facility,
defined in the bill, in the Commonwealth by an eligible taxpayer,
defined in the bill, during the taxable year. The amount of credits
that may be claimed for a single eligible facility shall not exceed
$1,665,000 in taxable year 2023, $2,220,000 in taxable year 2024,
and $4,440,000 in taxable years 2025, 2026, and 2027. The aggregate
credits in each taxable year are capped at $7.5 million in taxable
year 2023, $10 million in taxable year 2024, and $20 million in taxable
years 2025, 2026, and 2027. The credit may be carried forward for
five taxable years.

The credit shall
be administered by Department of Taxation, who shall compile and
submit an annual report by November 1 of each taxable year with the
number of eligible taxpayers applying for and utilizing the credit,
the amount of credits approved, and data on the benefits to the Commonwealth
of the use of qualified coal refuse to generate electricity at an
eligible facility to the Chairmen of the House Committee on Finance,
the House Committee on Appropriations, and the Senate Committee on
Finance and Appropriations.