West Virginia Legislature Passes Legislation to Lure a Cracker Facility



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In ongoing attempts to best position the state to attract an ethane cracker facility to the state, the West Virginia House of Delegates passed House Bill 4086 which grants substantial tax incentives for large investments of capitol in West Virginia aimed at growing manufacturing.  The West Virginia State Senate has now passed this bill as well.


The purpose of the bill is to allow certain real or personal property to be assessed at salvage value for the 25 year period following when it was placed in service.


Competition between the various Appalachian states is fierce as it is anticipated that one and possibly two cracker facilities will be located in the region to take advantage of the wet gas byproducts being produced in the Marcellus and Utica shale plays.  Each cracker facility will require substantial investments for construction and development of the facility in excess of one billion dollars and upon completion attract manufacturing businesses which are dependent on the chemical products produced by the cracker.


The Governor is expected to approve and sign this bill immediately and take it with him to Houston this week as he is expected to make a personal pitch to secure a cracker facility in West Virginia.


An announcement regarding the siting of an initial ethane cracker facility is anticipated in the coming weeks.


Government Relations Coordinator
(304) 280-6966
Charleston, WV