highest priority is meeting
your company’s needs. Part of the service
includes providing aggressive development
assistance in the form of tax credits and
financing programs. This development assistance
can reduce startup and operating costs and
provide for enhanced productivity.
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 five percent of the original cost of the property.
Commercial Patent Incentives Credit
The Commercial Patent Incentives Tax Credit can offset up to
100 percent of the 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
considerations for developers of a patent or a percentage of
net profit attributable to a patent used in a manufacturing
process or product when that patent has been developed in
conjunction with an agreement with Marshall University or
West Virginia University.
Corporate Headquarters Credit
Companies that relocate their corporate headquarters
to West Virginia 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, 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 businesses) as a result of their business expansion
projects, the State’s Economic Opportunity Tax Credit can
offset up to 80 percent of the corporate net income tax
and personal income tax (on flow through income only)
attributable to qualified investment. 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 corporate net income tax and personal
income tax (on flow through income only) attributable to
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.
Qualified businesses include only those engaged in the
activities of manufacturing, information processing,
warehousing, non-retail goods distribution, qualified research
and development, the relocation of a corporate headquarters,
or destination-oriented recreation and tourism.
The Freeport Amendment
The Freeport Amendment exempts property from the
West Virginia ad valorem property tax in two ways. First,
manufactured products produced in West Virginia and stored
in the state for a short time before moving into interstate
commerce are exempt from property tax. Second, goods
transported into West Virginia from outside of the state, which
are held for a short time in a warehouse and then shipped to
a destination outside of West Virginia, are exempt from the
The exemption does not apply to inventories of raw materials or
goods in process.
Five for Twenty-Five Program —
$2 Billion Primary (Fractionating) Plants,
Secondary Plants and Tertiary Plants
For 25 years, qualified plants receive a special property tax
valuation of five percent of the cost of the qualified property
instead of fair market value.
Five For Ten Program —
Fractionating Plants and Secondary Plants
Special property tax valuation applies for 10 years to real
property (excluding the value of unimproved land) and
personal property of facilities that are or will be classified
under the North American Industry Classification System
(NAICS) with the six digit code number 211112 (natural gas
liquid extraction “fractionating” plants) and to manufacturing
facilities that use products produced at a facility with a 211112
NAICS code. The special property tax valuation applies to
qualified capital additions of more than $10 million made
to pre-existing manufacturing facilities that have a value in
place before the capital addition of more than $20 million. The
special property tax valuation is 5 percent of the cost of the
qualified property instead of fair market value.
In the absence of a pre-existing manufacturing facility
owned or operated by the person making the capital
addition, multiple party projects may be established to meet
the $20 million pre-existing investment requirement.
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, corporate
net income tax, and personal income tax on certain pass through
income for 20 consecutive years.
High Technology Valuation Act (Data Centers)
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 five 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.
For lodging stays in excess of 30 consecutive days per person
at the same facility, there is an exemption from the state
consumers sales and service tax (six percent) and exemption
from the local hotel/motel tax (tax rate varies per region.)
Manufacturing Inventory Credit
Offsets the corporate net income tax in the amount of
property tax paid on raw materials, goods in process and
finished goods manufacturing inventory.
Manufacturing Investment Credit
A tax credit is allowed against up to 60 percent of corporate
net income tax and based on qualified investment in eligible
manufacturing property, with no new job creation required.
Manufacturing Sales Tax Exemption
Purchases of materials and equipment for direct use in
manufacturing are exempt from the six percent state sales and
use tax, including building materials and process equipment
purchased for construction of a manufacturing facility.
Research and Development
Sales Tax Exemption
Purchases of tangible personal property and services
directly used in research and development are exempt from
the consumer sales tax.
Sales Tax Exemption for Certain
Some computer-related sales of tangible personal property
and services are exempt from the consumer sales and
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
consumer sales and service 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.
The Tourism Matching Advertising
In order to extend advertising resources for the promotion
of tourism through partnerships, this 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.
West Virginia Film Industry Investment Act
Up to 31 percent of direct-production and post-production
expenditures can be converted to transferable tax credits
to offset state taxes. Also, purchases and rentals of tangible
personal property and purchases of services (excluding
gasoline or special fuel, food or beverages) directly used in
the activity of manufacturing a motion picture, TV program,
music video, or commercial are exempt from the consumer
sales and service tax and use tax.
Direct Loan Programs
The West Virginia Economic Development Authority can
provide up to 45 percent in financing fixed assets by providing
low-interest, direct loans to expanding state businesses
and firms locating in West Virginia. Loan term is generally 15
years for real estate intensive projects and five to 10 years
for equipment projects. Loan proceeds may be used for the
acquisition of land, buildings and equipment. Working capital
loans and the refinancing of existing debt are not eligible.
The West Virginia Economic Development Authority provides
a loan insurance program through participating commercial
banks to assist firms that cannot obtain conventional bank
financing. This program insures up to 80 percent of a bank
loan for a maximum loan term of four years. Loan proceeds
may be used for any business purpose except the refinancing
of existing debt.
Industrial Revenue Bonds
This program provides for customized financing through
federal tax-exempt industrial revenue bonds. Of the
state’s bond allocation, $59,757,600 is reserved for small
manufacturing projects; $17,073,600 for qualifying projects
in Enterprise Communities, and $93,904,800 for exempt
West Virginia Infrastructure and Jobs
The fund can be used for financial assistance to private
companies, public utilities, and county development
authorities for infrastructure improvements to support
economic development projects.
West Virginia Jobs Investment Trust
West Virginia Jobs Investment Trust (JIT) is a public venture
capital fund created to develop, promote and expand
West Virginia’s economy. The program makes investment funds
available to eligible businesses, thus stimulating economic
growth and providing or retaining jobs within the state.
Governor’s Guaranteed Work Force Program
This flexible, customized training program under the
West Virginia Development Office, 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 Innovation & Opportunity Act
The Workforce Innovation and Opportunity Act (WIOA) was
created to provide state and local areas the flexibility to
collaborate across systems in an effort to better address
the employment and skills needs of current employees,
jobseekers, and employers.
WIOA aligns training with needed skills and matches
employers with qualified workers. It provides incumbent
worker training and promotes work-based training—
increasing on-the-job training reimbursement rates to 75
percent. On-the-Job Training (OJT) provides opportunities
for participants to “learn as they earn.” The employer also
benefits by being reimbursed for part of the participant’s
wages during the training period, while having the services of
a full-time employee.
West Virginia Advance Program
This flexible program offers customized job training awards to
new and existing businesses. The program offers 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.