West Virginia lawmakers have made changes to a major tax proposal tied to high-impact data centers following strong opposition from local county officials. The bill, introduced by Gov. Patrick Morrisey, originally aimed to attract data centers through a new Certified Microgrid Program — but county leaders pushed back, concerned about losing millions in tax revenue.
The West Virginia Senate Economic Development Committee recently amended House Bill 2014, known as the Power Generation and Consumption Act. This bill focuses on encouraging the growth of data centers powered by localized energy systems called microgrids. These centers are expected to use large amounts of electricity — at least 90 megawatts — and would mostly consume power generated on-site.
The Original Plan Sparked County Concerns
Under the original version of HB 2014, property values for these data centers and microgrids would not be assessed by the counties in which they are located. Instead, tax returns would be submitted to the state’s Board of Public Works, much like public utilities that operate across county lines.
The original tax distribution raised red flags for counties. While they would still receive funds tied to existing bonds or excess levies, much of the remaining revenue would be split among various state-level funds:
- 55% to a personal income tax reduction fund
- 15% to a new Electric Grid Stabilization and Security Fund
- 10% to the Economic Development Closing and Promotion Fund
- 5% each to the Economic Enhancement Grant Fund and the Low-Income Energy Assistance Program
This plan, county officials said, would take away money they currently rely on to fund local services.
Counties Push Back
Officials from Berkeley and Greenbrier Counties were vocal in their opposition. Berkeley County Commission President Eddie Gochenour warned the plan could cost his county millions of dollars. “They want to come in and take it all, and that’s not fair,” Gochenour said. “We’re going to have to fight like the last monkey that gets on the ark.”
Greenbrier County Commissioner Tammy Tincher, who leads the County Commissioners Association of West Virginia, echoed these concerns. She argued that the added tax language would discourage counties from working to attract data centers in the first place. “Collaboration between state and county officials can lead to innovative solutions,” Tincher said. “But this bill may actually push opportunities away.”
Senate Committee Amends the Formula
In response to the backlash, the Senate Economic Development Committee adopted changes to HB 2014 to ensure counties would still benefit. The amended bill now divides the tax revenue as follows:
- 55% to the personal income tax reduction fund
- 30% to the county where the data center is located
- 5% distributed to the other 54 counties based on population
- 5% to the state road fund
- 5% to the Electric Grid Stabilization and Security Fund
This new structure aims to strike a balance — continuing to fund statewide initiatives while allowing host counties to share in the financial benefits of housing large data centers.
What Happens Next?
The amended bill now heads to the full Senate for review. If the Senate passes the changes, the House will need to agree to the revised version before it can become law.
Supporters of the bill say it offers a rare chance to tap into major investments that could transform the state’s economy. Curtis Capehart, policy director for the governor’s office, called the proposal a “once-in-a-lifetime opportunity” that could change how West Virginia approaches both energy and taxation.
Still, many local leaders are keeping a close eye on how the bill progresses — determined to make sure they don’t lose out on critical tax dollars in the name of statewide development.
