WV HB5399

Creates a state tax credit equal to 10% of the federal carbon oxide sequestration tax credit (26 U.S.C. § 45Q) for corporations operating biochar manufacturing facilities in West Virginia

Limits the credit to no more than 50% of the taxpayer's corporation net income tax liability per year, with unused portions eligible for carryback or carryforward under federal rules

Applies to qualified facilities that commence commercial operations after July 1, 2025, with credits claimable for up to 12 years following the facility's in-service date

Requires taxpayers to submit documentation including federal tax returns showing allowed 45Q credits, independent verification of biochar carbon content and permanence, and proof that production occurred in West Virginia

Allows pass-through of credits to shareholders, partners, or members of electing small business corporations, partnerships, and LLCs in proportion to their profit and loss allocations