SB 439 — Relating to taxation of wind power projects

WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee Substitute for Senate Bill 439 By Senator Rose [Introduced[Reported February 13,17, 2025;2025, from the Committee on Energy, Industry, and Mining] CS for SB 439 A BILL to repeal §11-6A-5a of the Code of West Virginia, 1931, as amended, relating to taxation of wind power projects.

referred to the Committee on Energy, Industry, and Mining;

and then to the Committee on Finance] Intr SB 439 2025R2331 A BILL to amend and reenact §11-6A-5a of the Code of West Virginia, 1931, as amended, relating to pollution control facilities tax treatment;

clarifying that wind power projects are not pollution control facilities for certain purposes;

and providing that wind power projects be taxed as real property.

(a)[Repealed.] Notwithstanding1 any other provisions of this article, a power project designed, constructed or installed to convert wind into electrical energy shall be subject to the provisions of this section.

(b) Each wind turbine installed at a wind power project and each tower upon which the turbine is affixed shall be considered to be personal property that is a pollution control facility for purposes of this article and, subject to an allocation of the value of project property determined by the Tax Commissioner in accordance with this section, all of the value associated with the wind turbine and tower shall be accorded salvage valuation:

Provided, That the portion of the total value of the facility assigned salvage value in accordance with this section shall, on and after July 1, 2007, be no greater than seventy-nine percent of the total value of the facility.

All personal property at a wind power project other than a wind turbine and tower shall not be accorded salvage valuation and shall not be considered to be personal property that is a pollution control facility.

For purposes of this section, "wind turbine and tower" is limited to:

The rotor, consisting of the blades and the supporting hub;

the drive train, which includes the remaining rotating parts such as the shafts, gearbox, coupling, a mechanical brake and the generator;

the nacelle and main frame, including the wind turbine housing, bedplate and the yaw system;

the turbine transformer;

the machine controls;

the tower;

and the tower foundation Wind power projects are not pollution control facilities for purposes of this article, and each wind turbine installed at a wind power project, and each tower upon which the turbine is affixed, Intr SB 439 2025R2331 shall be considered real property for the purpose of taxation so long as the tower of the wind power project is affixed to the ground.

For purposes of this section, "wind turbine and tower" includes:

The rotor, consisting of the blades and the supporting hub;

the drive train, which includes the remaining rotating parts such as the shafts, gearbox, coupling, a mechanical brake, and the generator;

the nacelle and main frame, including the wind turbine housing, bedplate, and the yaw system;

the turbine transformer;

the machine controls;

the tower;

and the tower foundation.

NOTE:

The purpose of this bill is to clarify that wind power projects are not pollution control facilities for certain purposes, and providing that wind power projects are to be taxed as real property.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.