Critics are calling a proposed West Virginia bill which provides tax incentives to data centers a “handout.”

The legislation would create a new tax credit for data centers, data processing and other related industries investing at least $2.5 million or creating at least 10 new full-time jobs in the state.

Morgan King, climate and energy program manager for the West Virginia Citizen Action Group, said House Bill 4013 would tie developers’ tax credits to average worker wages in the region, noting the move would cost the state hundreds of millions of dollars annually.

"These developers could qualify for these tax credits and essentially strip away tax revenue from the county and from the state," King contended. "And the state would be incentivizing them to pay these people an unlivable wage."

Last week, Gov. Patrick Morrisey announced yet another new center is expected to be built in the state, in Berkeley County, through a private $4 billion investment. The company, Washington, D.C.-based Penzance Management, plans to develop nearly 600 acres of land. The bill sits with the House Finance Committee.

King stressed the health of Mountain State families is at stake.

"We'll see more air pollution in areas where these gas-fired power plants would be," King pointed out. "And regardless of the power source of data centers, data centers are really water-intensive."

Residents of Mingo, Tucker and Mason counties have been increasingly vocal about their opposition to data centers slated for construction in their towns, citing concerns about pollution, water usage and decreased property values.

Source: Public News Service