Tax Incentives

Tax Incentives Aircraft Valuation, Special Aircraft Property All aircraft owned or leased by commercial airlines, charter carriers, private carriers and private companies, and any parts, materials or items used in construction, maintenance or repair of aircraft which are, or are intended to become, affixed to or a part of an aircraft or of an aircraft’s engine or of any other component of an aircraft will be valued at the lower of “salvage value” or 5% of original costs. Build WV The BUILD WV Act aims to assist West Virginia’s growing communities in attracting much-needed housing development projects. The credit offers a State Sales and Use Tax exemption for building materials and a 10-year property value adjustment refundable tax credit to offset building costs. West Virginia is one of the fastest growing in-bound states, and the demand for new, residential properties has never been higher. The West Virginia Department of Economic Development oversees the program and reviews all applications. A non-refundable application fee of $5,000 is required to apply. Projects must apply and be approved prior to the completion of construction. 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% 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. Film & TV Industry Sales & Use Tax Exemption The West Virginia Film Production Tax Credit offers up to 31% transferable tax credits to productions filming in the state. Eligible projects include films, TV shows, music videos, and more, with no per-project or talent caps. Productions must spend at least $50,000 annually, with additional incentives for hiring West Virginia residents. Application is required and managed by the West Virginia Department of Economic Development. The Downstream Natural Gas Manufacturing Investment Tax Credit Tax credit for qualified investment in 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 nonfarm 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. Economic Opportunity Credit For qualified companies that create at least 10 new jobs within specified time limits as a result of their business expansion projects, the State’s Economic Opportunity Tax Credit can offset up to 80% 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, $55,800 for 2020, then the qualified company can offset up to 100% 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 10 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 $37,950 per year for 2020 and the employee has employer- provided health insurance benefits. The $37,950 figure is adjusted annually for cost of living.