Tax Credit

• Economic Opportunity Credit - For qualified companies that create at least 20 new jobs within specified time limits (10 jobs in the case of qualified small business) as a result of their business expansion project, the State’s Economic Opportunity Tax Credit can offset up to 80% 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% of the specified taxes for up to 13 years.

• Manufacturing Investment Credit – Manufacturers that make qualified capital investments in West Virginia in an industrial facility may be eligible for the manufacturing investment tax credit. The credit is equal to 5% of the taxpayer’s qualified investment prorated over a 10 year period at a rate of 10% per year. The calculation of qualified investment for this credit is similar to that required for the economic opportunity tax credit and the credit may be used to offset up to 60% of the taxpayer’s annual liability for the business franchise tax, the severance tax and the corporation net income tax.

• 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 business and occupation tax, business franchise tax, corporate net income tax, and personal income tax on certain pass through income for 20 consecutive years.

• Special Rates of Electric Power for Industrial Consumers – The WV Public Service Commission may establish special rates that in its judgment are necessary or appropriate for the continued, new or expanded operation of energy-intensive industrial consumers. In order to qualify for a special rate, an industrial facility, plant or enterprise shall enter into negotiations with the utility, having a contract demand of at least 50,000 kilowatts of electric power at its WV facilities under normal operating conditions; create or retain at least twenty-five full time jobs in the state; have invested not less than $500,000 in fixed assets in the state, and provide reasonable evidence that without the special rate, the operation is threatened or not economically viable.