Updated
Updated · Fox News · Aug 30
West Virginia Earmarks 50% of Data Center Revenue to End Income Tax
Updated
Updated · Fox News · Aug 30

West Virginia Earmarks 50% of Data Center Revenue to End Income Tax

3 articles · Updated · Fox News · Aug 30

Summary

  • Gov. Patrick Morrisey unveiled a seven-point plan that would route half of revenue from approved hyperscale data centers to reducing and eventually eliminating West Virginia’s personal income tax.
  • The framework keeps none of that HIDC revenue in the general fund: 30% would go to host counties for schools and local government, 10% to all 55 counties, and 10% to infrastructure including water systems.
  • The push aims to attract billions in private investment and thousands of jobs as AI-driven data center demand surges, while requiring developers to coordinate with PJM and other grid operators on power reliability.
  • Opposition is also building, especially in the Eastern Panhandle, where residents and some lawmakers warn about utility costs, water use and weak local control as nearby Virginia communities grapple with data center sprawl.
  • West Virginia has already cut income taxes twice — 21% under former Gov. Jim Justice and 5% this year under Morrisey — leaving the top marginal rate at 4.58%.

Insights

Could West Virginia's bold plan to eliminate income taxes secretly drain millions from local schools to fund corporate data centers?
Will forcing tech giants to build their own power grids save ratepayers or drive billions in investment out of the state?
As AI demands massive water usage, can a new law truly protect local supplies while stripping communities of zoning control?