West Virginia Economic Development Directory

West Virginia State Incentives

SALES TAX EXEMPTION FOR CERTAIN E-COMMERCE BUSINESSES: Some computer-related sales of tangible personal property and services are exempt from the consumer sales and services tax.

SALES TAX EXEMPTION FOR CERTAIN WAREHOUSE AND DISTRIBUTION CENTERS: Purchases of certain tangible personal property in qualified warehouse and distribution centers may be exempt from the consumers’ sales and service tax.

The COMMERCIAL PATENT INCENTIVES TAX CREDIT can offset up to 100 percent of the business franchise tax, corporation net income tax, or in the case of individual taxpayers, the personal income tax. The credit is based on a percentage of royalties, license fees and other consideration for developers of a patent or a percentage of net profit attributable to a patent used in a manufacturing process or product.

HIGH-TECH MANUFACTURING CREDIT: Businesses that manufacture certain computers and peripheral equipment, electronic components or semi-conductors and which create at least 20 new jobs within one year after placement of qualified investment into service, can receive a tax credit to offset 100 percent of the business and occupation tax, business franchise tax, corporate net income tax, and personal income tax on certain pass through income for 20 consecutive years.

HIGH-TECHNOLOGY BUSINESS PROPERTY VALUATION ACT: Tangible personal property, including servers, directly used in a high-technology business or in an internet advertising business is valued for property tax purposes at 5 percent of the original cost of the property. In addition, sales tax is eliminated from all purchases of prewritten computer software, computers, computer hardware, servers, building materials and tangible personal property, for direct use in a high-technology business or internet advertising business.

LINKED DEPOSIT LOAN PROGRAM: Allows small, for-profit state employers with 50 or fewer employees and gross annual receipts of $5 million or less to apply for a linked deposit loan with an interest rate of 1 percent above published New York Prime, up to $250,000.

FILM INDUSTRY INVESTMENT ACT: Provides up to 31percent tax credits for in-state spend (27 percent base, plus 4 percent if 10 or more West Virginia residents are hired full time). Funded at $10 million annually; no caps; minimum spend of $25,000. Eligible projects include feature length films, TV films and series, commercials, music videos and commercial still photography.

CORPORATE HEADQUARTERS CREDIT: Companies that relocate their corporate headquarters to WV are eligible for tax credits if 15 new jobs (including relocated employees) are created within the first year. The credit can offset up to 100 percent of the tax liability for business and occupation tax, business franchise tax, corporate net income tax and personal income tax on certain pass through income, for a period of up to 13 years.

ECONOMIC OPPORTUNITY CREDIT: For qualified companies that create at least 20 new jobs within specified time limits (10 jobs in the case of qualified small business) as a result of their business expansion project, the State’s Economic Opportunity Tax Credit can offset up to 80 percent of specified business taxes for a period of up to 13 years. If a qualified company that creates the requisite number of jobs pays an annual median wage higher than the statewide average non-farm payroll wage, then the qualified company can offset up to 100 percent of the specified taxes for up to 13 years.

For qualified businesses creating less than 20 new jobs within specified time limits, or for a qualified small business creating less than 10 new jobs, a $3,000 credit is allowed per new full time job for five years, providing the new job pays at least $32,000 per year and the employee has employer-provided health insurance benefits. The $32,000 figure is adjusted annually for cost-of-living.

“FIVE-FOR-TEN” PROGRAM: Provides property tax valuation for new investment property of manufacturers that make qualified capital improvements of more than $50 million to an existing manufacturing facility having an original investment asset cost base of at least $100 million. Under this program, the new capital addition is valued at 5 percent of original cost for the first 10 years after it is placed on the property tax rolls.

MANUFACTURING INVESTMENT CREDIT: A tax credit is allowed against up to 60 percent of corporate net income tax and business franchise tax based on qualified investment in eligible manufacturing property, with no new job creation required.

MANUFACTURING INVENTORY CREDIT: Offsets the business franchise tax and corporate net income tax in the amount of property tax paid on raw materials, goods in process and finished goods manufacturing inventory.

STRATEGIC R&D CREDIT: Can offset up to 100 percent of corporate net income tax and business franchise tax, based on qualified expenditures for R&D projects.

AIRCRAFT VALUATION: Aircraft owned or leased by commercial airlines, charter carriers, private carriers and private companies are valued for property tax purposes at the lower of fair market salvage value or 5 percent of the original cost of the property.

MANUFACTURING SALES TAX EXEMPTION: Purchases of materials and equipment for direct use in manufacturing are exempt from the 6 percent state sales and use tax, including building materials and process equipment purchased for construction of a manufacturing facility.

SPECIAL RATES OF ELECTRIC POWER FOR INDUSTRIAL CONSUMERS: The WV Public Service Commission may establish special rates that in its judgment are necessary or appropriate for the continued, new or expanded operation of energy-intensive industrial consumers. In order to qualify for a special rate, an industrial facility, plant or enterprise shall enter into negotiations with the utility, having a contract demand of at least 50,000 kilowatts of electric power at its WV facilities under normal operating conditions; create or retain at least 25 full time jobs in the state; have invested not less than $500,000 in fixed assets in the state; and provide reasonable evidence that without the special rate, the operation is threatened or not economically viable.

RESEARCH & DEVELOPMENT SALES TAX EXEMPTION: Purchases of tangible personal property and services directly used in research and development are exempt from the consumers’ sales tax.

TAX INCREMENT FINANCING: Allows increases in property tax based on the improvement associated with qualified economic development and public improvement projects to assist with their long-term financing.

TOURISM MATCHING ADVERTISING PARTNERSHIP PROGRAM: Provides reimbursable matching funds for direct advertising. Business applicants and their partners must provide a minimum of 50 percent of the total cost for programs at the $10,000 + level. For programs not exceeding $7,500, business applicants must provide 25 percent of the total cost.

GOVERNOR’S GUARANTEED WORK FORCE PROGRAM: Flexible, customized training program that offers assistance to eligible companies and businesses by providing funding that directly supports the transfer of knowledge and skills. Companies must create a minimum of 10 net new jobs within a 12-month period.

WORKFORCE INVESTMENT ACT (WIA) PROGRAM: Customized training program available to employers that hire individuals that meet specific program requirements. The program targets job seekers that are either economically disadvantaged or displaced due to job shifting in the region.

WEST VIRGINIA ADVANCE PROGRAM: Offers customized job training awards to new and existing businesses. It supplies development and delivery of training services that will support a company’s startup and ongoing employee development initiatives through a local Community and Technical College.