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West Virginia Coal Producers Call for Tax Breaks to Remain Competitive

 

 

November 13, 2026 - West Virginia wants to produce more power, and coal producers say the state also needs to make it more competitive to produce the coal used in steelmaking.


At an energy summit Thursday, Morrisey announced Appalachian Power plans to invest about $17 billion in three natural-gas power plants


“In addition to the $17 billion, that' s separate, there's another $7.5 billion that is going to be put in to extend the reasonable life of the coal plants,” Morrisey said. “That's a major commitment."


While that may be good news for steam coal miners, metallurgical or steelmaking coal miners already dealing with hundreds of layoffs are calling for a tax break to maintain their key role as West Virginia's top export. Currently it's 5%.


“We pay twice the amount per ton of coal mined in West Virginia in severance tax than we do of coal mined in Virginia," Ramasco Resources vice chair Evan Jenkins said.


West Virginia Coal Association president Chris Hamilton added additional perspective into the numbers.


“The tax that's imposed on met coal here in West Virginia, that puts us at around an $8 disadvantage from our surrounding states," a ton Hamilton said.


A tax cut could help producers compete, but it would also mean less money for the state and local governments. Even with a lower tax, producers still face international competition, including from Australia, for a market increasingly tied to steel demand in Asia.


“We're looking at every budget issues now and we want to make sure we do it the right way,” Morrisey said. “There are a lot of competing interests for the dollars that are on the table.


If West Virginia cut its metallurgical coal severance tax, it would help compete against other states, but it's less clear if that would be enough to stand up to international competition.