Tax Incentives

Manufactured products and goods moving through West Virginia in interstate commerce are fully exempt from property tax. Critical for manufacturers, warehousing, and distribution.

• Covers finished goods stored briefly before moving into interstate commerce
• Storage should not exceed six months to maintain eligibility
• Does not apply to raw materials or goods in process

Large manufacturing facilities ($50M+ new investment, $100M+ existing) get property assessed at just 5% of cost for a decade.

• Applies to real property and personal property (excluding raw land)
• Also available for natural gas liquid fractionating plants

Manufacturers claim a credit against corporate net income tax equal to property taxes paid on manufacturing inventory — effectively neutralizing the cost.

A 5% credit on qualified investment, pro-rated over 10 years, that offsets up to 60% of corporate net income and severance tax. No job creation required — purely investment-based.

• Qualifying NAICS codes: 31, 32, or 33 (manufacturing)
• Covers real property, improvements, and tangible personal property

Job creation credit: 20+ new jobs offsets 80% of income tax. Pay above the statewide average wage and it jumps to 100%. Small business option: $3,000/job for 5 years.

• 100% offset if median wage exceeds statewide average
• Small business: 10+ jobs at $35,700+/year with health insurance

West Virginia's 6.5% corporate income tax is among the region's lowest. HB 3293 proposes cutting it to 3.25%. No franchise tax, no unitary combined reporting.

All tangible property directly used in manufacturing is exempt from the 6% state and 1% municipal sales tax — including building materials and process equipment for facility construction.

Warehouse and distribution operations with $50M+ investment and 300+ full-time jobs qualify for sales tax exemptions on all tangible personal property at the facility.

Servers and equipment in technology businesses are assessed at 5% of original cost for property tax. Sales tax is eliminated on computers, servers, software, hardware, and building materials.

Manufacturers of computers, electronic components, or semiconductors that create 20+ jobs can offset 100% of B&O and corporate income tax for 20 consecutive years. The credit is transferable.

Signed into law April 2025. Data centers can build dedicated on-site power generation without Public Service Commission jurisdiction. This is the law that makes the Monarch Compute Campus possible.

• 70%+ of generated electricity must serve data centers in the district
• Tax distribution: 50% income tax reduction fund, 30% host county, 10% all counties, 5% state grants
• Impact assessment and mitigation plans required

Tax incentives for data centers committing to coal-generated electricity: sales tax exemption on equipment, property tax at salvage value, and a 10-year investment credit. Requires $50M+ investment and 50+ jobs.

Create 10+ jobs paying at least 2.25x the state median salary with health benefits. Credit up to 10% of payroll for 5 consecutive years. $5M statewide annual cap.

Former West Virginians who return after 10+ years away receive a $25,000 nonrefundable personal income tax credit. Helps attract experienced professionals back to the state. Expires 2030.

New 2026 program channeling private capital into WV small businesses through certified growth funds. Investors receive non-refundable tax credits starting in 2029. Passed House 87-3.

Developers building 6+ residential units or investing $3M+ get sales tax exemptions on construction, a refundable income tax credit for 10 years, and B&O tax relief. 610 units approved statewide in FY 2024-25.

Tourism destination projects investing $1M+ that attract 25%+ out-of-state visitors receive a sales tax credit of 25% of project costs (35% near abandoned mine land or recreation areas) over 10 years, with a 15-year extension available.

Counties and municipalities capture future property and sales tax revenue increases from new development to finance the project itself. No increase to existing tax rates.

Mason County's Apple Grove tract is a designated Opportunity Zone. Capital gains invested through Qualified Opportunity Funds receive tax deferral, and appreciation is tax-free after 10 years.

Equity investments through certified Community Development Entities in low-income communities earn a 39% federal tax credit over 7 years. Can reduce total project cost by 20-30%.

All 55 WV counties qualify for ARC grants supporting water/wastewater, broadband, site development, and workforce training. Mason County has received prior ARC investment including a $5.3M EDA wastewater grant.

The U.S. Economic Development Administration funds public works and economic adjustment in distressed communities. Mason County secured a $5.3M wastewater infrastructure grant.

SBA provides 7(a) loans for working capital, 504 loans for fixed assets (land, buildings, equipment), and Microloans for startups. WV Small Business Development Center offers free application assistance.