West Virginia High Court OKs State Deal With Insulation Maker

A West Virginia citizens group lost its fight against a $150 million deal to finance an insulation plant after the state high court deemed the transaction constitutional.

Jefferson County Foundation Inc. argued the deal between the West Virginia Economic Development Authority and stone wool insulation maker Roxul USA Inc. was a “sham structure” intended to “hide a huge tax break for a strictly private, profit-making enterprise.” The West Virginia Supreme Court of Appeals disagreed, ruling Wednesday that the deal is exactly what the WVEDA is statutorily authorized to do and the transactions aren’t a tax exemption.

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