The following are basic descriptions of state incentive programs.

Our team is happy to arrange a meeting with the West Virginia Development Office (WVDO) and your team to explore potential state incentives. These incentives are explained in more detail below.

 

 

 

Aircraft Valuation

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 million made to pre-existing manufacturing facilities that have a value in place before the capital addition of more than 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 million pre-existing investment requirement.

The special property tax valuation applies to qualified capital additions of more than million made to pre-existing manufacturing facilities that have a value in place before the capital addition of more than 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 million pre-existing investment requirement.

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 qualified investment.
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 property tax. 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 million made to pre-existing manufacturing facilities that have a value in place before the capital addition of more than 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 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.

Lodging Exemptions

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 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 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 Partnership Program

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, 000 + level. For programs not exceeding, 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.