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Tax Exemption for Wind Energy Generation

Program Info
Start Date 


West Virginia
Program Type 
Corporate Exemption
Rebate Amount 

Reduction of Business and Occupations (BandO) tax from 40% to 12% of generating capacity

West Virginia Division of Energy

In March 2007, West Virginia enacted legislation ([ SB 441]) amending its tax law concerning the business and operation (B&O) tax for wind turbines. Although SB 441 increased the taxable value of wind turbine generating capacity, the taxation level is still significantly lower than that of most other types of electricity generation. For most types of newly constructed electricity-generating units, the B&O tax is calculated by multiplying a pre-determined dollar amount by 40% of the nameplate capacity rating of the generating unit. However, the B&O tax on wind turbines is multiplied by only 12% of the nameplate capacity rating. This results in an effective B&O tax rate on wind powered turbines that is about 30% of the effective tax rate of most other types of newly constructed generating units.