The House Finance Committee advanced House Bill 4421 on Wednesday, which creates the “Natural Gas Liquids Economic Development Act” and the “West Virginia Natural Gas Liquids Property Tax Adjustment Act.”
House Bill 4421 aims to encourage the development, transportation and use of natural gas liquids to encourage the growth of the industry in West Virginia. The West Virginia Natural Gas Liquids Property Tax Adjustment Act grants a tax credit to oil and gas companies for the production, transportation, storage, use and consumption of natural gas.
It is estimated that this tax credit will cause a $1 million loss for the state’s General Revenue fund. Supporters of this bill say that this loss can be regenerated with new investments that the tax credit will attract. There will be no reduction for oil and gas companies’ taxes on a county level.
Mark Muchow, Deputy Secretary for the Department of Revenue, testified in committee that this tax credit will mainly benefit smaller investments.
Many members in the committee agreed that this bill shows the state’s willingness to encourage the growth of the oil and gas industry. The hope for many members is that this bill is the start of more legislation that will be able to use more money to support the development of this new industry.
House Bill 4421 was reported to the full House with the recommendation that it do pass.