SPOTLIGHT PROGRAMS

Economic Opportunity Tax Credit: Companies that create at least 20 new jobs and make a qualified investment in a business facility may offset up to 80% of the corporate net income tax attributable to that qualified investment. If a company creates 20 new jobs with an annual median wage above the statewide average, it may offset up to 100% of the corporate net income tax attributable to the qualified investment. For a qualified business creating less than 20 new jobs within specified time limits a $3,000 credit is allowed per new full-time job for five years. These jobs must pay $35,700 per year and the employee has employer provided health insurance benefits. The $35,700 is annually adjusted for cost of living. For qualified small businesses the number of jobs is lowered to 10. This credit is transferable. ‍

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High-Tech Manufacturing Credit: Businesses that create at least 20 new jobs and manufacture certain computers and peripheral equipment, electronic components or semi-conductors may receive a tax credit to offset 100% of the business and occupation tax and corporate net income tax for 20 consecutive years. This credit is transferable.

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TAX CREDITS

Corporate Headquarters Relocation Credit: Businesses that relocate a corporate headquarters operation to West Virginia and create at least 15 new jobs are entitled to a tax credit equal to 10% of qualified investment.  The non-refundable and non-transferable credit can be used to offset up to 100% of business and occupation tax and corporate net income tax liability for a period of up to 13 years.‍

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Manufacturing Inventory Credit: Offsets the corporate net income tax in the amount of property tax paid on raw materials, finished manufacturing inventory. This credit is non-refundable and does not carry forward or back. ‍

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Manufacturing Investment Credit: Credit is allowed against up to 60% of corporate net income tax. It is based on qualified investment in eligible manufacturing property. No new job creation is required. This credit is transferable.

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TAX EXEMPTIONS/ABATEMENTS

Sales & Use Tax Exemption: Certain activities are exempt from sales and use tax. Materials and equipment used directly in manufacturing are exempt from the 6% state and 1% municipal sales taxes. This includes building materials and process equipment purchased for the construction of the manufacturing facility. Certain tangible property used in research and development, warehouse and distribution centers, and E-Commerce businesses is also exempt from consumer and sales and service taxes. ‍

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Freeport Amendment: Exempts property tax from West Virginia Ad Valorem in two ways. Manufactured products produced in West Virginia and stored in the state for a short period of time before moving into interstate commerce are exempt from property tax. Also, goods transported into the state from outside and are held in a warehouse for a short period of time then shipped outside are exempt from property tax. ‍

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High Technology Valuation Act (Data Centers): Tangible personal property, including servers, directly used in a technology or internet advertising business has a reduced assessment of 5% of its original cost for business personal property tax purposes.  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 technology or internet advertising business.

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DIRECT FINANCIAL ASSISTANCE

West Virginia offers a variety of indirect and direct loan programs that may be used for the acquisition of land, buildings, and equipment. The state can also provide customized financing through federal tax-exempt industrial revenue bonds.

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JOB TRAINING

Governor’s Guaranteed Work Force Program: This program provides customized job training to businesses that create at least 10 net new jobs within a 12-month period. Awards cannot exceed $2,000 per trainee.

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LOCAL INCENTIVES

Five for Ten Program - Manufacturing Facilities – Investments greater than $50M in a manufacturing facility having $100M or more of preexisting investment in place prior to the new investment are valued at 5% of cost of new investment for property tax. The value of the land before improvements is subtracted from the capital addition. Unimproved land is not given salvage value treatment. ‍

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Five for Ten Program - Fractioning Plants and Secondary Plants – A special property tax valuation applies for 10 years, and personal property of facilities classified under NAICS six-digit 211112. This applies to manufacturing facilities that use products produced by a manufacturing facility under the same NAICS. Property tax valuation applies to qualified capital additions of more than $10 million made to pre-existing manufacturing facilities. Those facilities must have a value before additions of $20 million. The property tax valuation is 5% of the qualified property. The value of the land before improvements is subtracted from the capital addition. Unimproved land is not given salvage value treatment. If no manufacturing owned/operated by person making capital addition, multiple party projects may be established to meet $20 million threshold. ‍

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Last Updated: April 2023