Charleston, WV – Governor Patrick Morrisey introduced a comprehensive plan aimed at turning West Virginia’s emerging AI data‑center industry into a catalyst for tax relief and infrastructure investment. The proposal, developed with bipartisan lawmakers, outlines a seven‑point framework that would allocate 50% of the revenue generated by approved hyperscale data‑center projects directly to reducing the state personal income tax, with the ultimate goal of eliminating the tax altogether.
Revenue earmarked for tax relief and local benefits
Under the plan, the remaining 50% of data‑center revenue would be split among counties and statewide projects. Thirty percent would flow to the counties hosting the facilities to support schools and local government, another ten percent would be distributed evenly across all 55 West Virginia counties, and the final ten percent would fund critical infrastructure upgrades, including public water systems that have suffered since the decline of the coal industry.
Addressing community concerns
The governor emphasized that the strategy is designed to protect utility customers from added costs, a major worry in the Eastern Panhandle and other regions bordering the Washington, D.C. metro area. “All West Virginians must directly benefit from data‑center revenue,” Morrisey said, noting that the plan includes safeguards to ensure developers work closely with PJM and other interstate grid operators to maintain power‑grid reliability.
Economic and strategic implications
Proponents argue the plan will attract billions of dollars in private investment, create thousands of high‑paying construction and technology jobs, and revitalize economically distressed areas while preserving West Virginia’s natural beauty. The initiative also frames data centers as strategic infrastructure with national security implications in the United States’ competition with China.
Opposition and local pushback
Despite the governor’s optimism, some residents and local officials have voiced concerns. In neighboring Virginia’s Jefferson, Berkeley and Clarke counties, “No Data Centers” signs have appeared as communities warn of rising utility costs and water usage. West Virginia House Minority Leader Sean Hornbuckle, a Democrat, called for amendments that would give localities more control over data‑center siting, warning that the current bill could set a dangerous precedent for property‑rights protections.
Context of recent tax cuts
West Virginia’s income‑tax rate has already been on a downward trajectory. Former Governor Jim Justice, R‑WV, cut the top marginal rate by 21% during his tenure, and Morrisey’s administration reduced it an additional 5% this year, leaving the top rate at 4.58%. The new plan seeks to build on that momentum by using a growing industry to fund further reductions.
Next steps
The proposal will be reviewed by the state legislature, where supporters hope the bipartisan nature of the underlying 2025 law will smooth passage. If enacted, West Virginia could become a model for other red‑state economies looking to leverage technology‑driven growth while safeguarding families, faith‑based communities, and individual liberty through lower taxes and stronger infrastructure.
Original reporting: Fox News (HLL/CB) — read the source article.
