CHARLESTON, W.Va. — The state’s new tax and revenue secretary
says West Virginia
“Tax credits, while they may have a
purpose and function in very limited situations, generally are not a good idea
for a state, particularly a state like West Virginia which has limited
resources to begin with,” said Bob Kiss.
Kiss talked about the Alternative
Fuel Motor Vehicles tax credit which is still costing the state big, even after
part of it has been repealed.
In 2011, the Legislature approved
allowing a credit of 35 percent of the purchase price, up to $7,500, for
vehicles that used compressed natural gas, liquefied natural gas, liquefied
petroleum gas or ethanol.
That legislation also extended the
tax credit to those buying vehicles equipped to burn flex fuels, like ethanol
and gasoline mixes. The vehicles did not have to run on those flex fuels, just
be capable of doing so.
Earlier this year, the Legislature
changed that part of the law because of the number of vehicles that meet the criteria
while still being fueled by gasoline. The credit for flex-fuel vehicles expired
on April 14.
“The good news, in terms of what I
saw when I started evaluating it, is that the course going in the wrong
direction was recognized and was closed and dealt with,” said Kiss. “The
problem is there’s a runoff period.”
To date, the tax credit has cost West Virginia
So far, more than 90 percent of the
credits claimed have been for flex-fuel vehicles.
The tax credits for vehicles that
run on natural gas are still in place.
