Senate Passes Data Center Bill After Changing Tax Distribution Formula

^{Property taxes generated from microgrid districts will be distributed according to the formula in the chart above (right column) according to the version of HB 2014 passed by the WV Senate on April 11.}

Update (April 12): HB 2014 was amended by the House. The tax distribution formula adopted by the Senate on April 11 (below) was modified — read The Observer update here.

CHARLESTON, WV (2025 Apr 11) — The West Virginia Senate passed HB 2014 (Microgrids & Data Centers) by a vote of 32 for, 1 against, 1 not voting. The bill now returns to the House of Delegates for a final vote. Prior to passage in the Senate, the bill was amended to adjust the distribution of tax revenues generated from the certified microgrid districts as follows:

• 50% to a new Personal Income Tax Reduction Fund (established by this bill)
• 40% to the County in which the microgrid district is located
• 5% to all Counties, allocated on a per capita basis
• 3% to the Low Income Energy Assistance Fund (administered by the Department of Human Services
• 2% to a new Electronic Grid Stabilization Fund (established by this bill)

During the Senate floor debate on April 11, Senator Tarr (District 4) proposed two amendments that were rejected. The first amendment would have exempted projects begun before February 1 2025 from the special tax distribution (above). The second amendment would have removed any restriction on existing two coal-fired generating facilities from serving both a microgrid and the existing public power grid.

The Senate made no changes to the bill’s provisions that exempt migrogrid districts (and any structures located in these districts) from all local zoning and subdivision regulations.

Senator Phillips (District 7) spoke against the passage of HB 2014, highlighting the concern that the ability of microgrid generating facilities to sell even 10% of their capacity to the public grid could lead to reduced utilization of exisiting generating facilities and drive up costs for residential ratepayers across the state. Phillips said “I want the jobs, but I want [these facilities) to be on the grid.”

Senator Jeffries (District 8) spoke for the passage of HB 2014, remarking that this legislation is “opening up the door for our state to grow.”

[READ MORE — background on HB 2014 and links to related stories]

By Steve Pearson