State Taxes

The State of West Virginia imposes two primary business taxes.

(1)    The Corporation Net Income Tax is imposed at a rate of 8.75 percent annually.
(2)    The Business Franchise Tax rate is 0.55 percent or $50, whichever is greater and is measured by the net worth of the corporation as determined for federal income tax purposes.

Tax Credits/Incentives

High Growth Business Investment Tax Credit: Equal to 50 percent of the qualified investment made in companies that have been certified by the tax commissioner as eligible for the Strategic R&D Tax Credit.

Economic Opportunity Credit: Offsets 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.

Tourism Development Incentive: An eligible company that invests in and operates a new or expanding tourism destination project may receive a return of up to 25 percent of approved development costs over 10 years through a consumer sales tax credit.

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.

West Virginia Capital Company Credit: Investors in qualified West Virginia capital companies are entitled to a state tax credit equal to 50 percent of their investment. Capital companies must have a capital base of at least $1 million but not greater than $4 million. The state has authorized $6 million in credits.

Source:  West Virginia USA Web Site – as posted