WEST VIRGINIA STATE TAX CREDITS AND INCENTIVES
For more information on any of the following, please contact the Tucker County Development Authority at firstname.lastname@example.org or your business' accountant.
ECONOMIC OPPORTUNITY CREDIT
For qualified companies that create at least 20 new jobs within specified time limits (10 jobs in the case of a 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 5 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.
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. The Manufacturing investment credit is made available to manufacturers making qualified capital investments in a WV industrial facility. The credit is up to 5% of qualified investment over 10 years to offset up to 50% of business franchise tax, severance tax, and corporation net income tax. Job creation is not required for this tax credit.
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.
MANUFACTURING SALES TAX EXEMPTION
Purchases of materials and equipment purchased 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.
THE FREEPORT AMENDMENT
The Freeport Amendment exempts property from the West Virginia ad valorem property tax in two ways:
(1) Manufactured products produced in West Virginia and stored in the state from a short time before moving into interstate commerce are exempt from property tax.
(2) 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.
HIGH-TECH MANUFACTURING CREDIT
Businesses that manufacture certain computers and peripheral equipment, economic components or semi-conductors and which create at least 20 new jobs within 1 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.
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.
STRATEGIC RESEARCH & DEVELOPMENT CREDIT
The Strategic Research and Development Tax Credit can offset up to 100 percent of corporate net income tax and business franchise tax, based on qualified expenditures for R&D projects.
RESEARCH AND DEVELOPMENT SALES TAX EXEMPTION
Purchases of tangible personal property and services directly used in research and development are exempt from the consumers' sales tax.
COMMERCIAL PATENT INCENTIVES CREDIT
The Commercial 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.
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, business franchise tax, corporate net income tax, and personal income tax on certain pass through income, for a period of up to 13 years.
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.
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.
The program provides property tax valuation for a new investment property of manufacturers that make qualified 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.
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 (6 percent) and exemption from the Local Hotel/Motel Tax (tax rate varies per region).
TOURISM DEVELOPMENT INCENTIVE
A COMPANY THAT INVESTS IN AND OPERATES A NEW OR EXPANDING TOURISM DESTINATION PROJECT MAY BE ELIGIBLE TO RETAIN SOME OF THE CONSUMERS’ SALES AND SERVICES TAX THAT IT COLLECTS FROM ITS CUSTOMERS OVER A 10-YEAR PERIOD ON SALES FROM OPERATION OF THE TOURISM ATTRACTION OR FACILITY.
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 $10,000 + level. For programs not exceeding $7,500, business applicants must provide 25 percent of the total cost.