West Virginia Incentives and Laws for Natural Gas

The list below contains summaries of all West Virginia incentives and laws related to Natural Gas.

State Incentives

Alternative Fuel Vehicle (AFV) Tax Credit

Effective July 1, 2011, an income tax credit is available to eligible taxpayers who convert a vehicle to operate exclusively on an alternative fuel or purchase a new original equipment manufacturer dedicated or bi-fuel AFV. The value of the tax credit is 35% of the vehicle purchase price or 50% of the vehicle conversion cost, up to $7,500 for vehicles with a gross vehicle weight rating (GVWR) up to 26,000 pounds (lbs.) and up to $25,000 for vehicles with a GVWR greater than or equal to 26,000 lbs. For the purpose of this tax credit, a qualified AFV operates on fuel including natural gas, propane, electricity, hydrogen, and coal-derived liquid fuels. Plug-in hybrid electric vehicles are also eligible. This tax credit expires December 31, 2021. (Reference Senate Bill 465, 2011, and West Virginia Code 11-6D)

Alternative Fueling Infrastructure Tax Credit

Effective July 1, 2011, an income tax credit is available to eligible taxpayers who construct or purchase and install qualified alternative fueling infrastructure. The tax credit is 50% of the total allowable costs associated with construction or purchase and installation of the equipment, up to $250,000. If the infrastructure is accessible for public use, the credit allowed will be multiplied by 1.25 and the maximum amount will be $312,500, so long as the amount of the credit allowed does not exceed the cost of construction. The maximum tax credit allowed will decrease to $200,000 on January 1, 2014, and to $150,000 on January 1, 2016. Qualified home fueling infrastructure is eligible for the same 50% credit up to, $10,000. For the purpose of this tax credit, qualified alternative fuels include natural gas, propane, hydrogen, and coal-derived liquid fuels. Electric vehicle supply equipment may qualify for the tax credit if it is installed for residential use only. This tax credit expires December 31, 2021. (Reference Senate Bill 465, 2011, and West Virginia Code 11-6D)

Alternative Fuel School Bus Incentive

Any county that uses alternative fuel for the operation of any portion of its school bus fleet is eligible for a 10% reimbursement from the West Virginia Department of Education to help offset the cost of maintenance, operation, and other costs incurred from using the alternatively fueled school buses. Any county qualifying for this allowance must submit a plan that includes the future use of the alternatively fueled school buses to the Department of Education. Acceptable alternative fuels include compressed natural gas. (Reference West Virginia Code 18-9A-7)

Laws and Regulations

Alternative Fuels Studies

The Joint Committee on Government and Finance (Committee) must conduct two separate studies related to alternative fuels. The first study must focus on the impact of alternative fuels on West Virginia's economy, specifically the use of alternative fuels in transportation. This report must include input from state agencies and private industry. The second study must investigate the environmental benefits and economic impact of renewable energy utilization, including the use of biofuels in vehicles, and the potential for a state Renewable Energy Act or similar policy. The Committee must report its findings, conclusions, and recommendations to the state legislature in 2011.It must also draft any regulations necessary to carry out its recommendations. (Reference Senate Concurrent Resolution 38, 2010, and House Concurrent Resolution 87, 2010)

Alternative Fuel Production Subsidy Prohibition

Incentives or subsidies from political subdivisions for the production of alternative fuels are prohibited by law, with exceptions for certain coal-based liquid fuels. (Reference West Virginia Code 8-27A-3 and 11-13D-3D)

Provision for Establishment of Alternative Fuel Vehicle (AFV) Acquisition Requirements

The West Virginia Department of Administration may require that up to 75% of a state agency's fleet consist of AFVs. To meet these requirements, agencies may purchase or lease AFVs, or convert existing vehicles to operate using alternative fuels. The Department of Administration may waive this requirement if an agency's vehicles are operating in an area where the agency cannot reasonably establish a central alternative fueling station or the lifetime cost of the vehicle or fueling infrastructure is significantly higher as compared to conventional vehicles or fuels. In addition, this requirement does not apply to law enforcement, emergency, public transit authority, state rail authority, non-road vehicles, or school buses. (Reference West Virginia Code 5A-2A-1 and 5A-2A-2)

Alternative Fuel Use Requirement

West Virginia higher education governing boards must use alternative fuels to the maximum extent feasible. (Reference Senate Bill 330, 2011, and West Virginia Code 18B-5-9)

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