Coal Utility Tax Credit for Environmental Compliance Costs

HB 4035 would give coal-fired electric utilities a tax credit for environmental compliance costs.

Sponsors: Phil Mallow

ISSUES: Clean Air, Climate

CWV Position: Opposes

Position Statement: Conservation West Virginia opposes HB 4035 because it shifts the cost of pollution control from coal utilities onto taxpayers, weakens the “polluter pays” principle, and diverts public resources away from cleaner, forward-looking energy and environmental solutions.

• Subsidizes pollution rather than preventing it: Environmental compliance is a basic cost of doing business. Providing tax credits for compliance effectively rewards utilities for meeting minimum legal standards instead of encouraging cleaner practices.

• Undermines the polluter-pays principle: HB 4035 would transfer compliance costs from coal utilities to the public, reducing accountability for pollution that harms air quality, water resources, and public health.

• Locks in reliance on coal: By financially propping up coal-fired utilities, the bill discourages investment in cleaner, lower-impact energy sources that better protect air, water, and climate.

• Diverts limited public funds: Tax credits reduce state revenue that could otherwise support environmental restoration, clean energy, water infrastructure, or community resilience.

• Creates an uneven playing field: Providing special tax treatment for coal utilities disadvantages cleaner energy technologies that already operate without comparable subsidies for compliance costs.

Status: Introduced January 14, 2026; referred to the Committee on Energy and Public Works then Finance.