West Virginia Ties Data Center Revenue

West Virginia set a hard target to end its state income tax by routing half of new data center revenue directly to tax cuts.

Story Snapshot

The state’s plan dedicates 50% of qualifying data center revenue to reduce and eventually end the income tax.
The plan directs other shares to local communities and infrastructure, aiming to ease public costs.
Recent and proposed bills build a special tax framework to attract large data centers.
Officials pitch this as a path to growth without raising taxes on families.

What West Virginia Just Committed To

West Virginia adopted a statewide data center plan that earmarks money from approved projects for tax relief and community needs. The plan states that fifty percent of all data center project revenue will go toward reducing and eliminating the state personal income tax. The plan also sets aside shares for local communities and infrastructure. State leaders say this approach links private investment to public benefits people can track in their bills and local budgets.

Governor Patrick Morrisey has promoted the policy as a way to grow jobs and cut taxes at the same time. He says using revenue from hyperscale data centers allows the state to lower the income tax burden without shifting costs to working families. The goal is to bring in capital-intensive projects, then use the revenue stream they generate to fund tax cuts, local schools, and infrastructure upgrades that voters can see and feel.

How The Revenue Split Would Work

The state’s document explains how money from qualifying projects is divided. Half goes to state income tax reduction. A separate portion flows to local communities and schools where projects are built. Another portion supports shared needs and infrastructure across counties. A draft Senate bill also proposes changing how property tax from “high-impact” data centers is distributed, increasing the cut that host counties receive from these projects. These rules aim to align local support with visible gains.

Officials have moved several bills to make the state attractive for large data centers. The West Virginia-Powered Data Center Incentive Act sets investment and job thresholds that projects must meet to qualify for incentives. A separate House bill proposes a sales and use tax exemption for eligible centers, with rules for who can claim it and how. Another law sets how ad valorem property tax from high-impact facilities is divided by the state auditor. Together, these measures create a predictable lane for investors.

Why This Fits A Bigger Trend In State Policy

This strategy matches a broader pattern in economic development. States often offer targeted incentives to win capital-heavy facilities, then promise jobs, local upgrades, and tax relief. The public payoff usually depends on how much actually gets built, how fast, and how revenue rules are applied. West Virginia’s package follows that model by tying a fixed share of project revenue to cutting the income tax and sending money back to counties and infrastructure.

🚨 WATCH: This is what data centers done right looks like.

West Virginia just announced $81 BILLION in new investment.@WVGovernor says the state will protect ratepayers and water supplies while using data center revenue to lower—and ultimately ELIMINATE—the state income tax. pic.twitter.com/a9b08URj2E

— Innovation Council (@innovationcncl) September 4, 2026

For many readers on the left and right, the draw is simple: clear math and visible results. Families want lower taxes and better roads without new fees. Communities want a fair share if they host large power-hungry sites. The plan tries to answer both by fixing the revenue split in law and by setting eligibility rules for companies. Lawmakers say this gives residents a way to hold leaders and investors to the deal over time.