SB 935 West Virginia Senate · 2026 Regular Session

Eliminating business and occupation tax exemption for certain coal-fired merchant power plants

SB 935 repeals a tax exemption for certain coal-fired power plants in West Virginia, directly affecting owners/operators of coal plants operational before January 1, 1995. The bill reduces the taxable generating capacity for these plants to 45% of their official capability (instead of 100%) for tax years starting July 1, 2021, but requires plants to remain operational until at least July 1, 2025, to qualify. If such plants close before July 1, 2025, owners must repay tax savings through a recapture tax, though federal mandates exempting closures avoid this requirement. The law applies specifically to "merchant power plants" (independent generators) and modifies existing tax calculation rules under West Virginia Code §11-13-2o.

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Feb 2026

Senate Passage

Feb 2026

House of Delegates Passage

Governor

Introduced Feb 12, 2026 Last action Feb 26, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

sb935 sfa barnhart 2-24 adopted.htm → sb935 sfat barnhart 2-25 adopted.htm · 6 edits

MODERATE

The bill was amended to change its title and scope. The original amendment proposed to modify tax calculations for coal-fired power plants, but the new version focuses on increasing taxes on specific coal-fired generating units, particularly those regulated by other states, with a delayed effective date of July 1, 2026.

Scope change

The bill's scope was narrowed and restructured. The original draft included provisions for tax recomputation starting in 2021 with a recapture tax mechanism if plants closed before 2025. The new version focuses on increasing the tax rate to 100% of official capability for units regulated by other states, with an effective date of July 1, 2026.

TITLE

The amendment language changed from proposing to strike and replace the entire bill to proposing only a title substitution.

TIMELINE

Removed provisions that would have changed tax calculations starting January 1, 2021, and recapture tax requirements if plants closed before July 1, 2025.

Changed the effective date for the modified tax computation from January 1, 2021, to July 1, 2026.

ELIGIBILITY

Added specific provision targeting coal-fired generating units regulated entirely by another state, increasing their tax to 100% of official capability.

ENFORCEMENT

Removed the recapture tax provision that would have required owners to pay back tax savings if plants ceased operation before July 1, 2025.

REQUIREMENT

Removed the transfer recapture provision that would have applied if a generating unit was transferred before July 1, 2025.

Floor votes · Senate Feb 25, 2026

How they voted

31–1

Passed · 1 other

Total votes 33

Feb 25, 2026

D Democratic2

1 Yea 1 Nay

50% Nay

R Republican31

30 Yea 1

96% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 26, 2026

Committee

To House Energy and Public Works

lower

Feb 26, 2026

Introduced

Introduced in House

lower

Feb 25, 2026

Upper · Passed

Title amendment adopted

upper

Feb 25, 2026

Upper · Passed

Passed Senate (Roll No. 231)

upper

Feb 24, 2026

Upper · Passed

Floor amendment adopted (Voice vote)

upper

Feb 20, 2026

Upper · Passed

Reported do pass

upper

Feb 12, 2026

Introduced

Introduced in Senate

upper

Feb 12, 2026

Committee

To Finance

upper

1 primary · 7 co-sponsors