Providing a tax credit for obtaining certain certifications by the United States Green Building Council Leadership in Energy and Environmental Design green building rating system
Summary
HB5262 would create a new corporate net income tax credit for eligible taxpayers that own commercial buildings and make renovations or improvements needed to obtain certification under either the U.S. Green Building Council’s LEED rating system or the Green Globes Building Initiative standard. The credit equals the taxpayer’s qualifying certification-related costs, reduced by any reimbursement received from other sources, and may be claimed in the taxable year certification is received.
The bill also sets out detailed administrative rules for how the credit is applied. It can first offset corporation net income tax, then business franchise tax, and, for pass-through entities such as LLCs, partnerships, and S corporations, may flow through to owners’ personal income tax liabilities on conduit income. Unused credit may be carried forward for three years, but taxpayers must apply to the Tax Commissioner and submit proof of certification to claim it. The bill includes transfer rules for successor owners, forfeiture provisions if the building stops being used commercially, and recapture requirements if certification is not maintained.
Impact
The bill would add a new section to West Virginia’s corporation net income tax code, creating a targeted incentive for commercial property owners to pursue green building certification and energy-efficient renovations. It would affect both corporate taxpayers and certain pass-through entities, and it would also interact with the business franchise tax and personal income tax provisions by allowing the credit to be applied in a specified order. The Tax Commissioner would gain rulemaking and approval authority over applications, documentation, and compliance, and taxpayers would face recapture liability if certification is lost.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the bill’s structure, the measure appears to be framed as a pro-development, pro-energy-efficiency tax incentive aimed at encouraging private investment in environmentally certified commercial buildings. The overall tone of the bill text is affirmative and programmatic rather than controversial, though its fiscal impact and use of tax credits could invite scrutiny from budget-focused lawmakers.
Contention
The main policy questions likely concern whether the state should subsidize private building upgrades through a tax credit, how large the revenue loss may be, and whether the incentive is limited too narrowly to commercial property owners seeking LEED or Green Globes certification. Another possible point of contention is administration: the bill requires certification proof, application approval, carryforward tracking, successor transfer rules, and recapture if certification is not maintained, which could be viewed as either necessary safeguards or burdensome compliance. No specific objections or amendments are documented in the provided materials.
Providing a tax credit for obtaining certain certifications by the United States Green Building Council Leadership in Energy and Environmental Design green building rating system
Relating to providing a credit against the business and occupation tax imposed on coal-fired electric generating units to help off-set environmental compliance costs