Politics
West Virginia outlines plan to use AI data center revenue to phase out state income tax
Governor Patrick Morrisey and state lawmakers unveiled a strategy that devotes half of the revenue from approved hyperscale data centers to tax relief.
The short version
- West Virginia Governor Patrick Morrisey and state lawmakers have announced a seven-point development plan to reduce and ultimately eliminate the state's personal income tax.
- The initiative proposes allocating 50% of revenue from approved hyperscale AI data centers toward personal income tax reduction, bypasssing the state's general fund.
- The plan faces local opposition and concerns from some residents and lawmakers regarding rising utility costs, resource strain, and a lack of local control over development.
Key facts
- Under the newly proposed plan, 50% of the revenue generated by approved projects designated as High Impact Data Centers will go directly toward reducing and eliminating the state personal income tax.[Fox News]
- Of the remaining data center revenue, 30% will go to host counties for schools and local government, 10% will be distributed among all 55 counties, and 10% will fund infrastructure upgrades like public water systems.[Fox News]
- The development plan requires data center developers to coordinate directly with interstate grid operators, such as PJM, to protect power grid reliability.[Fox News]
- House Minority Leader Sean Hornbuckle, who co-sponsored the 2025 bill establishing the data center designation framework, has called for amendments to grant communities more local control over development.[Fox News]
What remains uncertain
- It remains to be seen whether the influx of data centers will lead to higher utility bills for local residents, a major concern raised by communities in the Eastern Panhandle.[Fox News]