West Virginia State Capitol by Bubba is licensed under CC BY-SA 3.0

Governor Patrick Morrisey recently signed into law the Power Generation and Consumption Act of 2025, a landmark piece of legislation that represents a significant milestone for West Virginia’s economic future. Central to this law is the creation of the Personal Income Tax Reduction Fund, an initiative designed to deliver lasting economic benefits to families and businesses across the Mountain State. 

At its core, HB 2014 modernizes West Virginia’s energy infrastructure and positions the state as a competitive hub for energy-intensive industries, most notably, data centers. The bill establishes the Certified Microgrid Program, enabling the development of localized, resilient power systems capable of meeting the substantial electricity demands of modern facilities. This critical infrastructure upgrade not only strengthens grid reliability but also cultivates an environment uniquely suited for sustained, high-capacity investment. 

Perhaps most importantly, HB 2014 directly links economic growth to real taxpayer benefits through the Personal Income Tax Reduction Fund. This fund dedicates a portion of property tax revenues generated by Certified Microgrid Districts and High Impact Data Centers to gradually lower West Virginia’s personal income tax rates. This fiscally responsible approach ensures that as the state’s economy grows, West Virginians will see meaningful tax relief. 

In a competitive regional landscape where many states are aggressively cutting or eliminating income taxes to attract talent, investment, and innovation, West Virginia’s proactive strategy is essential. Currently, the state’s income tax rate of 3.5% exceeds those of neighboring Ohio (3.07%), Pennsylvania (3.07%), and Kentucky (4%). To compete effectively and attract businesses and residents, West Virginia must prioritize economic competitiveness, and the Personal Income Tax Reduction Fund does exactly that. It creates a virtuous cycle in which economic expansion generates new revenue, funding tax relief that encourages even greater investment and job creation. 

Governor Morrisey has repeatedly endorsed the elimination of the state income tax, and the signing of HB 2014 marks a major step toward realizing that goal. Americans for Tax Reform applauds Governor Morrisey and the Legislature for their strong leadership and commitment to reducing the tax burden on West Virginians.