Area Development Homepage >> State Resources >> West Virginia >>

Direct Financial Incentives

Indirect loans:
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, $53,809,350 is reserved for small manufacturing projects; $15,374,100 for qualifying projects in Enterprise Communities, and $77,154,000 for exempt facility projects.

West Virginia Infrastructure and Jobs Development Council:
The fund can be used for financial assistance to public utilities, county development authorities and private companies for infrastructure improvements to support economic development projects.

Linked deposit program:
Provides low-interest loans to qualified small businesses for amounts up to $150,000 and for terms up to four years.

Governor's Guaranteed Work Force Program:
The program offers training grants for eligible companies that create a minimum of 10 new jobs within a 12-month period. It provides the following services:

• • Employee recruitment
• • Pre-employment assessment
• • High performance workplace development
• • Structured on-the-job training and development
• • Workplace education

Venture capital:
West Virginia Capital Company Act: The West Virginia Economic Development Authority administers a program that provides for debt and equity venture capital investment to small business. A number of firms are qualified in West Virginia to make venture capital investments.

West Virginia Jobs Investment Trust (JIT) is a public venture capital fund created to develop, promote and expand West Virginia's economy by making investment funds available to eligible businesses, thus stimulating economic growth and providing or retaining jobs within the state.

Business Incentives

Corporate headquarters credit:
Companies that relocate their corporate headquarters are eligible for tax credits.

Economic opportunity credit:
Offsets up to 80 percent of taxes for up to 13 years. Minimum job requirement: 20.

"Five-for-ten" Program:
Provides a tax incentive to businesses that make qualified capital improvements of at least $50 million to an existing base of $100 million or more. It assesses the new capital addition at a salvage value of 5 percent for the first 10 years.

Manufacturing investment credit:
Allows a 50 percent corporate net income tax credit and franchise tax credit based on investment with no new job creation required.

Manufacturing sales tax exemption:
Materials and equipment purchased for direct use in manufacturing are exempt from the 6 percent state sales and use tax.

Strategic R&D credit:
Allows for up to 100 percent tax offset for R&D projects. R&D expenses are exempt from sales tax.

Sales tax exemption for e-commerce vendors:
Some computer-related sales of tangible personal property and services are exempt from the consumer sales and services tax.

High-growth business investment tax credit:
This credit is equal to 50 percent of the qualified investment made in certain companies that have been certified by the tax commissioner as eligible for the Strategic R&D Tax Credit. An investor or investor ownership group may use up to $50,000 of credit per year.

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 associated with qualified economic development and public improvement projects to assist with their long-term financing.

Warehouse "Freeport" tax exemption:
Goods in transit to an out-of-state destination are exempt from ad valorem property taxes when warehoused in West Virginia.

Tourism Matching Advertising Partnership Program:
This is a reimbursable partnership program that provides matching funds for innovative and effective direct advertising projects that increase visitation and travel expenditures in the state of West Virginia impacting the economic growth of the travel industry.

Lodging exemptions:
For lodging stays in excess of thirty (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 (varies per region).

West Virginia Film Industry Investment Act:
Up to 31 percent of direct production and post-production expenditures can be converted to non-refundable tax credits to offset state taxes.

High-tech manufacturing credit:
High-tech manufacturing businesses making computer and peripheral equipment, electronic components or semi-conductors can receive a tax credit to offset 100% of the Business Franchise Tax and 100% of the Corporate Net Income tax for 20 consecutive years.