The Ritchie County Economic Development Authority (RCEDA), in cooperation with the Mid-Ohio Valley Regional Council, offers a number of loan programs with attractive terms and interest rates. These loan programs usually partner with a private lending institution to offer an attractive blended rate with greater than average flexibility. 

The RCEDA can also be the owner of title of a manufacturing facility, which is then leased to the manufacturing company on a lease-to-purchase agreement. This provides tax and financing advantages to the company. 

Attractive loan packages are also available through the West Virginia Economic Development Authority. 

West Virginia also has an industrial access road program through which they will cover a portion of the cost of building roads to an industrial site. The amount covered is limited to 10 percent of the private investment in the manufacturing facility. 

We recommend working with you to structure a financing and training program that fits your needs. 

West Virginia Summary of Taxes and Incentives 
(Source: Summary of WV Tax Law Book) 

Corporate income tax 9% of West Virginia taxable income of every domestic or foreign corporation engaging in business or deriving income from property, activity, or other sources in West Virginia S Corporations are state-tax-exempt if electing Fed IRC. 

Personal income tax Resident individual is taxed on entire net income. Nonresident is taxed on net income from West Virginia sources, computed by multiplying income as if resident by ratio of West Virginia source income to Fed adjusted gross income. Tax rate 6.5 

Sales tax 6% on persons selling or leasing or renting tangible personal property including motor vehicles, and dispensing certain services, including transient rentals. 

Inventory including all tangible personal used in the trade or business and all goods and property kept for sale and remaining, is tax. Property is assessed at its true and actual value as of July 1 by the county. Fixtures and machinery are included in valuation of real property taxes. 

Corporate License tax is based on par value of authorized capitol stock. Fees range from $20 to $150. 

Business Franchise tax is imposed on domestic corporations, with in-state commercial domicile, foreign or domestic corporations owning or leasing property located in-state or doing business in-state, and partnerships owning or leasing property located in-state or doing business in-state. Annually pay greater of $50 or 0.75% of the value of the capitol. 

Economic Opportunity tax credit is available to qualified businesses that make a qualified investment (on or after January 1, 2003) in a new or expanded business in West Virginia and, as a result of this investment, create at least twenty (20) new jobs. Qualified businesses include only those engaged in the activities of manufacturing, information processing, warehousing, non-retail goods distribution, qualified research and development, the relocation of a corporate headquarters, or destination-oriented recreation and tourism. 

Economic Opportunity tax credit for corporate headquarters relocation A taxpayer that moves its corporate headquarters to West Virginia from a location outside of West Virginia may be entitled to an Economic Opportunity Tax Credit, if the relocation creates at least fifteen (15) new West Virginia jobs. If the relocation creates at least 15, but less than 20 new jobs, then the amount of the credit is equal to 10% of the Taxpayer’s adjusted qualified investment. 

Economic Opportunity tax credit for “Small Business” The term “small business” means a business or a controlled group of foreign and domestic affiliated businesses with annual gross sales of not more than $7,000,000. Beginning on January 1, 2004, the maximum gross sales qualification is increased each year by a percentage reflecting the cost of living increase for the prior year. This constraint must be met by the small business only during the year qualified investment is first placed into service or use. An eligible small business taxpayer is allowed a credit for the general Economic Opportunity Tax Credit, except that the small business must create at least 10 new West Virginia jobs within 12 months, rant than 20 new jobs. If the qualified small business creates at least 10 qualified new jobs, the small business may receive a credit equal to 10% of its qualified investment. 

Manufacturing Investment tax credit The term “manufacturing” means any business activity classified as having a sector identifier, consisting of the first two digits of the six-digit North American Industry Classification System code number, of thirty-one, thirty-two or thirty-three. Eligible investments include real property and improvement thereto and tangible personal property constructed or purchased for use as a part of a new or expanded business of a qualified industrial taxpayer. The credit is equal to 5% of the taxpayer’s qualified investment pro-rated over a ten-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. 

West Virginia Military Incentive credit The purpose of the West Virginia Military Incentive Program Act of 1991 is to encourage the employment of members of the National Guard and the reserve forces, disadvantaged Vietnam era and Korean conflict veterans and disabled veterans generally. For economically disadvantaged veterans hired, the credit available to the employer is 30% of the first $5,000 in wages or compensation actually paid the employee. 

West Virginia Capital Company credit The purpose of the West Virginia Capital Company Act is to increase the availability of development capital to encourage and assist in the creation, development and expansion of businesses based in West Virginia. Any investor, including individuals, partnerships and corporations, that makes a capital investment in a qualified West Virginia Capital Company may claim a tax credit equal to 50% of the investment. The total amount of tax credits authorized for a single qualified capital company may not exceed $2 million, and the total credits authorized for all capital companies may not exceed an annually set statutory total for any West Virginia Fiscal year. 

Neighborhood Investment Program credit The West Virginia Neighborhood Investment Program Act provides credit to individuals and private sector businesses that make eligible contributions to community based nonprofit organizations that establish projects to assist neighborhoods and local communities. Eligible contributions include cash, tangible personal or real property (at fair market value) and contributions of in kind professional services (at 75 percent of fair market value.) The maximum credit that can be taken by any taxpayer is $100,000 per taxable year, for eligible contributions to one or more certified project plans. ¨ 

Property Tax Increment Financing Tax increment financing captures the projected increase in property tax revenue gained by developing a discrete geographic area and uses that increase to assist in paying for the project. The funding makes it possible to go forward with projects that otherwise would not be built. Tax increment financing can be used by West Virginia counties and Class I and II municipalities to help fund their own development projects or projects brought to them by private developers or other private or government entities. Class III and IV municipalities must work with their local county, commissions in order to utilize tax increment financing. (Class I municipalities have more than 50,000 people. Class II municipalities have more than 10,000 and up to 50,000 people. Class III municipalities have more thank 2,000 and up to 10,000 people. Class IV municipalities have less than 2,000 people.) 

Sunny Day Fund The Governor’s Contingency Fund now contains funds specially earmarked for economic development projects. These funds are distributed by the governor’s discretion. 

Planning & Research Division Kimberly Wade 

Education and Training Programs 

Governor’s Guaranteed Work Force Program: The program offers training grants up to $1,000 per employee for eligible companies that create a minimum of 10 new jobs within a 12 month period. It provides employee recruitment, pre-employment assessment, high performance workplace development, structured on-the-job training and development, and workplace education. 

Competitive Improvement Program: The program targets small (50 or fewer employees) and medium (under 500 employees) sized manufacturers. Grants, capped at $1,000 per trainee, require a 50 percent cash contribution by each employer and require employers to document an in-kind contribution (usually wages paid to employees while being trained) toward the project. 

Workforce Development Initiative Program: The program encourages working partnerships between educational institutions and the business community. To qualify, community and technical colleges must establish their own revolving fund dedicated to work force development initiatives. The program requires a one-to-one match from the private sector. 

Small Business Work Force Program: The program, part of the West Virginia Small Business Development Center system, reimburses the costs of pre-approved technology and technology training for eligible small businesses. The program can provide up to $5,000 in grants designed to enhance competitiveness and expand markets, and up to $10,000 in grants for technology businesses. To be eligible, companies be for-profit, have 50 or fewer employees, have been in operation for at least one year, have less the $2.5 million in revenues ($3.5 million for technology businesses) and be in good standing with state taxing authorities. 

Workforce Investment Act Program: People seeking WIA funding for training – even though they may meet the program entrance requirements – are not considered for training until they complete certain requirements, which may include job search, assessment, development of individual employment plans and other criteria. 

Planning & Research Division Kimberly Wade