West Virginia Legislature proposes tax credit for green building certification efforts
March 07, 2025 | Introduced Bills, House Bills, 2025 Bills, West Virginia Legislation Bills, West Virginia
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On March 7, 2025, the West Virginia State Legislature introduced House Bill 3247, aimed at incentivizing sustainable building practices through a tax credit for commercial property owners. This proposed legislation seeks to amend the Code of West Virginia by adding a new section, §11-24-11c, which provides a tax credit for costs incurred in obtaining certifications from the United States Green Building Council's Leadership in Energy and Environmental Design (LEED) or the Green Globes Building Initiative.
The bill outlines several key provisions. It defines eligible taxpayers as owners of commercial buildings who undertake renovations and improvements necessary to achieve certification under the specified green building standards. The credit amount is determined by the actual costs incurred for these renovations, minus any reimbursements received from other sources. Eligible taxpayers can claim this credit on their annual tax returns for the year they receive certification.
The legislation also establishes a structured approach for applying the credit against corporation net income taxes and business franchise taxes. Notably, if the eligible taxpayer is a limited liability company, small business corporation, or partnership, any unused credit can be allocated to the owners based on their share of income derived from the eligible taxpayer.
Debate surrounding House Bill 3247 has focused on its potential economic and environmental implications. Proponents argue that the bill could stimulate investment in green building practices, leading to reduced energy consumption and lower operational costs for businesses. Critics, however, express concerns about the fiscal impact on state revenues and whether the tax credits will effectively lead to significant environmental benefits.
As the bill progresses through the legislative process, its supporters emphasize the importance of fostering sustainable development in West Virginia, while opponents call for a thorough analysis of its long-term economic viability. The outcome of House Bill 3247 could set a precedent for future environmental initiatives in the state, potentially influencing similar legislation across the region. The next steps will involve committee reviews and discussions, where further amendments may be proposed before a final vote is taken.
The bill outlines several key provisions. It defines eligible taxpayers as owners of commercial buildings who undertake renovations and improvements necessary to achieve certification under the specified green building standards. The credit amount is determined by the actual costs incurred for these renovations, minus any reimbursements received from other sources. Eligible taxpayers can claim this credit on their annual tax returns for the year they receive certification.
The legislation also establishes a structured approach for applying the credit against corporation net income taxes and business franchise taxes. Notably, if the eligible taxpayer is a limited liability company, small business corporation, or partnership, any unused credit can be allocated to the owners based on their share of income derived from the eligible taxpayer.
Debate surrounding House Bill 3247 has focused on its potential economic and environmental implications. Proponents argue that the bill could stimulate investment in green building practices, leading to reduced energy consumption and lower operational costs for businesses. Critics, however, express concerns about the fiscal impact on state revenues and whether the tax credits will effectively lead to significant environmental benefits.
As the bill progresses through the legislative process, its supporters emphasize the importance of fostering sustainable development in West Virginia, while opponents call for a thorough analysis of its long-term economic viability. The outcome of House Bill 3247 could set a precedent for future environmental initiatives in the state, potentially influencing similar legislation across the region. The next steps will involve committee reviews and discussions, where further amendments may be proposed before a final vote is taken.
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