Senators consider pulling tax break from wind producers, but their debate is coal vs economic development
February 17, 2025
Tax breaks for the wind power industry would be blown away under a state Senate bill.
The underlying debate, though, was West Virginia’s loyalty to its coal industry versus the state’s ability to diversify through economic development projects that might desire wind power at reasonable prices.
Senate Bill 439 , sponsored by the chairman of the Senate Energy Committee, calls for wind power projects be taxed as real property. The bill would eliminate provisions of current state law defining wind turbines as pollution control facilities, taxed at salvage value — or no greater than 79% of the total value of the facility.
The bill advanced out of the Energy, Industry and Mining Committee on Monday, with some members contending current state law has given wind power an undeserved advantage over competing sectors like coal.
Others said the change would be a disservice to companies that want wind to be a significant part of what they use for energy.
Senator Rupie Phillips, R-Logan, said it’s no secret where he stands: he’s been against the tax break for years. He questioned how many West Virginians are employed by wind power operations and whether many of the turbines are produced in the United States.
“When is enough enough? I mean, shouldn’t you step back and say ‘Hey guys, we get it. We’re going to join everybody and pay our fair taxes,’” Phillips said.
Phillips asked questions of a representative of a wind power company operating in West Virginia. One had to do with the reliability of alternative energy.
In one, the senator asked, “You got kids? You love ’em don’t you? And God forbid, nothing would ever happen to them any of them, anybody’s loved one. But if they were on a life support system, do you want to depend on that windmill to keep that life support system running?”
The speaker testifying before the committee, Chris Hall representing Clear Way Energy, responded, “I don’t think anybody is arguing that we don’t continue to need baseload generation.”
Senator Craig Hart, R-Mingo, asked for justification of the tax break for wind projects. He also asked whether wind power is often desired by companies trying to meet their goals for environmental, social and governance requirements.
“I’m trying to wrap it around my head why we’re giving out a tax break to help a company meet their ESG goals when the people of West Virginia have sent a resounding ‘no’ to ESG,” Hart said.
Hall, the representative of the wind industry who was providing testimony, responded that individual companies have their own preferences. He had said his company provides West Virginia wind power to Toyota and Google.
“We’re providing a type of energy that’s in demand. You may not agree with the reason that it’s in demand, but it’s in demand not just in West Virginia but around the country.”
Hart went on to say the coal industry does not have a desirable amount of activity in West Virginia.
“Our coal burners are sitting there in neutral, maybe first gear,” Hart said. “And if they had the opportunity to shovel more coal, it takes men to do that. It takes men to drive that coal, it takes men to go get the coal; it takes some good ladies to do that as well.
“And if we can bring our coal fire plants up to a higher efficiency that makes the cost lower for everyone in West Virginia. And I don’t see where giving a tax break to a company that provides to ESG-wanting companies is helpful for the people of my district, quite frankly, in the coalfields.”
Senator Joey Garcia, D-Marion, responded to the discussion of ESG by countering “the biggest thing I hear from people in my district is about J.O.B. — about jobs.”
Senator Glenn Jeffries, R-Putnam, said he supports energy production of all kinds. Jeffries has been deeply involved in economic development and recruitment in West Virginia, promoting it as “an all energy state.”
“We’re getting ready to pull the rug out from underneath one company that is in my district — 2,200 people — a significant energy change within their business structure,” Jeffries said.
He said West Virginia stands to lose major economic development projects because of the changes in the bill.
“Businesses look for stability. They want reliability. They want to know that there’s not changes coming,” Jeffries said. “It’s not small money. It’s big money. It’s large money. It’s millions, billions of dollars in investments.”
The West Virginia Chamber of Commerce, which had several representatives in the committee room, distributed a memorandum describing significant concerns with the bill. The chamber said it supports an all-of-the-above approach to energy:
“SB 439 would upend a long-standing agreement made by our state and would have the effect of making wind energy cost prohibitive. While these are serious concerns the Chamber has, we are also very worried about the signal West Virginia will send – both domestically and internationally.
“Over the past several years our state has secured some major economic development projects that will provide a better livelihood to our citizens and propel us towards the goal of being a better place to live, work and raise a family. Those developments came, however, because of commitments that we as a state made. Legislation like SB 439 will send a loud and clear message that West Virginia cannot be trusted to uphold ‘its end of the deal.’ That is why we are urging no further action on this bill.”
Story by Brad McElhinny, MetroNews