West Virginia Governor Patrick Morrisey Proposes Data Center Revenue for Personal Income Tax Elimination

The proposal routes HIDC revenues outside the general fund, assigning 50 percent to direct personal income tax reduction, 30 percent to host counties for schools and local government, 10 percent to all 55 counties, and 10 percent to infrastructure. This allocation responds to documented coal industry decline and aims to capture private capital without legislative competition over spending. Primary documents from the governor's office specify that only approved projects qualify and that the mechanism operates by statute rather than annual appropriation. Neighboring Virginia's Loudoun County concentration has produced measurable resident opposition and legislative commentary from Rep. Suhas Subramanyam on data center density. West Virginia's framework differs by contractually linking revenue to tax relief for income taxpayers rather than diffuse public expenditure, altering the distribution of gains between mobile capital and fixed local populations. The policy's structure favors higher earners who pay the income tax while delivering smaller shares to rural counties near proposed sites. This pattern aligns with state competition for data infrastructure investment amid rising national electricity and land demand. Legislation scheduled for 2025 will define the designation criteria and revenue formulas.