- Industrial Revenue Bonds (IRBs) – 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 facility projects.
- Direct Loan Programs provides up to 45% 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.
- Five for Ten Program for Fractioning Plants and Secondary Plant is a special property tax valuation applies for 10 years to real property (excluding the value of unimproved land) and personal property of certain facilities that are or will be classified under the North American Industry Classification System (NAICS) with the six digit code number 211130 and to manufacturing facilities that use products produced at fractionating plants with the same code. The special property tax valuation applies to qualified capital additions of more than $10M made to pre-existing manufacturing facilities that have a value in place before the capital addition of more than $20M. The special property tax valuation is 5% of the cost of the qualified property instead of fair market value. The value of the land before any improvements is subtracted from the value of the capital addition, and the unimproved land value is not given salvage value treatment. 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 $20M pre-existing investment requirement.
- Indirect Loans are provided by the West Virginia Economic Development Authority through participating commercial banks to assist firms that cannot obtain conventional bank financing. This program insures up to 80% 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.
- Entrepreneurship and Innovation Investment Fund fosters job creation and enable economic development and diversification through support of research and development initiatives funded by the Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) programs. The Entrepreneurship and Innovation Investment Fund provides grants to eligible small businesses to match funds they receive from SBIR/STTR Phase I and Phase II awards.
- Five for Twenty-Five Program is a 25-year special property tax valuation of 5% of the cost of the qualified property (also referred to as salvage value) instead of fair market value. The value of the land before any improvements is subtracted from the value of the capital addition, and the unimproved land value is not given salvage value treatment.
- Five for Ten Program for 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 the new investment for property tax purposes. The value of the land before any improvements is subtracted from the value of the capital addition, and the unimproved land value is not given salvage value treatment.
- West Virginia High-Tech Manufacturing Credit provides companies investing in computers, peripheral equipment, electronic components, and semiconductors creating at least 20 new jobs within one year after the initial investment is made and may receive a tax credit offsetting 100% of the corporate income / personal income tax for 20 years.
- West Virginia’s Corporate Headquarters Credit offers a non-refundable credit offsetting up to 100% of business and occupation, corporate net income, and personal income tax liability for a period of up to 13 years when the business creates 15 new jobs in the State within the first year of relocation.
- West Virginia’s Economic Opportunity Credit offers companies creating at least 20 new jobs within a specified time limit or at least 10 jobs in the case of a qualified small business a tax credit up to 80% of the employer’s corporate net income and personal income tax so a company may offset up to 100% of its corporate net income tax or personal income tax if the requisite number of jobs pays an annual median wage higher than the state’s average non-farm wage.
- 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% of the corporate net income tax, and personal income tax on certain pass through income for 20 consecutive years. Jobs must have a median compensation of $55,800 (for 2020), adjusted for inflation each year.
- Corporate Headquarters Tax Credit is available for companies that relocate their corporate headquarters to West Virginia if 15 new jobs (including relocated employees) are created within the first year. The credit can offset up to 100% 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.
- The Downstream Natural Gas Manufacturing Investment Tax Credit is available for a new or expanded downstream natural gas manufacturing facility in West Virginia that results in the creation of at least 5 new jobs within 3 years of placement of qualified investment in service or use. Credit is taken proportionally over a 10-year period, with 20 year carryforward possible. The credit offsets tax attributable to the qualified investment for the Corporation Net Income Tax and Personal Income Tax on flow through income. If annual median compensation of qualified new employees exceeds the statewide average non- farm payroll wage, credit to offset up to 100% of tax attributable to qualified investment. Other qualified Taxpayers may offset up to 80% of tax attributable to qualified investment.
- 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.
- 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 5% of the original cost of the property. Also, there is a sales tax exemption for all purchases of prewritten computer software, computers, computer hardware, servers, building materials and tangible personal property for direct use in a qualified high-technology business or internet advertising business.
- Manufacturing Sales Tax Exemption available for purchases of materials and equipment for direct use in manufacturing are exempt from the 6% state sales and use tax and 1% municipal sales tax, including building materials and process equipment purchased for construction of a manufacturing facility.
- The Freeport Amendment exempts property from the West Virginia ad valorem property tax.
- West Virginia Infrastructure and Jobs Development Council 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 (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.
- High Wage Growth Jobs Credit is available for employers who are registered to do business in West Virginia, offer health benefits to all full-time eligible employee, maintain a net overall increase in West Virginia employment during the credit period, have a net overall increase of employment of at least 10 new high-wage jobs held by West Virginia residents, and certify the employer pays at least 50% of employee health care premiums. Credit is applied against Corporation Net Income Tax and Personal Income Tax derived from pass through income from a qualified business. Credit refund may not exceed $100,000 per taxpayer. Unused credit may carry forward up to 10 years.
