Credits & Incentives

 

There are two incentives to mention right away: (1) there is no B&O tax as Wolf Creek Park is county-owned property; (2) a lease to own option will avoid property taxes, to qualifying companies for the term of the lease.

Wolf Creek Park property is affordably priced at $55,000/acre for commercial sites, and $7,500/acre for residential sites (10 acre minimum).

Economic Opportunity Credit: Available to qualified businesses that make a qualified investment in a new or expanded business. The credit is also available for qualified small businesses and headquarters relocation.

Manufacturing Investment Credit: For manufacturers that make qualified capital investments in an industrial facility.

Strategic R&D Credit: For businesses engaged in qualified research and development activities. The credit may be refundable in some cases. Purchases of tangible personal property and services for direct use in research and development are exempt from West Virginia\’s consumer sales and service tax and use tax.

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.

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.

“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 Sales Tax Exemption: Materials and equipment purchased for direct use in manufacturing are exempt from the 6 percent state sales and use 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.

Sunny Day Fund: The Governor’s Contingency Fund now contains funds specially earmarked for economic development projects.

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.

Tax Increment Financing: Allows increases in property tax associated with qualified economic development and public improvement projects to assist with their long-term financing. For more information, read the Tax Increment Financing handbook.

http://www.revenue.wv.gov/Documents/tifhandbook.pdf

West Virginia Department of Commerce
Capitol Complex, Bldg. 6, Room 525
Charleston, WV 25305-0311
(800)982-3386

http://www.wvcommerce.org/business/businessassistance/default.aspx


State Sponsored 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.

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: West Virginia Workforce Development

http://wvcommerce.org/business

http://region1workforcewestvirginia.org/

Governor\’s Workforce Investment Division: The Governor\’s Workforce Investment Division of the West Virginia Development Office provides technical and financial assistance to employers. By partnering with Region 1 Workforce WV, the region can lower the training and retraining expenses of local business.
Director
1900 Kanawha Blvd. E.
Charleston, West Virginia 25305-0311
(304) 558-7024 or (800) 982-3386
Fax: (304) 558-7029

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.


Financing

New River Gorge Regional Development Authority
Maximum Loan: $100,000; Minimum $25,000 (up to 50% – 70% of total project)
Equity: 10% minimum company contribution (based upon total project amount)
Eligible Loans: Start-Up, Expansion, Retention
Working Capital
Fixed Asset Loans
Interest Rate: Attractive Rate, set by Loan Review Committee
Jobs Creation Ratio: $15,000:1

NRGRDA Financial Assistance: The Authority operates a revolving loan fund program structured to provide loans as part of a larger funding package. The 4-C RLF (revolving loan funds) are used for private sector job creation or retention. It is the purpose of the 4-C RLF to partially fill the gap between the lending available from banking institutions, micro-loan programs, Rural Development, Small Business Administration and the WV Economic Development Authority, etc. and the needs of an expanding or start-up company. The economic impact resulting from this lending program should be measurable in terms of creating or preserving jobs. Click here to visit NRGRDA Web Site.


Direct Loan Programs

The West Virginia Economic Development Authority can provide up to 45 percent in financing fixed assets by providing low-interest, direct loans to expanding state businesses and firms locating in West Virginia.

Indirect loan programs: The West Virginia Economic Development Authority provides a loan insurance program through participating commercial banks to assist firms that cannot obtain conventional bank financing.

Industrial revenue bonds: This program provides for customized financing through federal tax-exempt industrial revenue bonds. Of the state\’s bond allocation, $47,250,000 is reserved for small manufacturing projects; $13,500,000 for qualifying projects in Enterprise Communities, and $74,250,000 for exempt facility projects.

Leveraged technology loan insurance program: This program expands the loan insurance coverage to 90 percent for those businesses involved in the development, commercialization or use of technology-based products and processes.

West Virginia Infrastructure and Jobs Development Council: The Economic Infrastructure Bond Fund can be used for financial assistance to public utilities, county development authorities and private companies for infrastructure improvements to support economic development projects.

Small business development loans: This program provides capital to entrepreneurs for new or expanded small business with loans from $500 to $10,000. Please contact the West VirginiaSmall Business Development Center at (888) 982-7232 or 558-2960.

Linked deposit program: Provides low-interest loans to qualified small businesses for amounts up to $150,000 and for terms up to four years.


Venture Capital

INNOVA Commercialization Group, an initiative of the West Virginia High Technology Consortium Foundation, is a statewide commercialization group focused exclusively on West Virginia innovators. INNOVA’s mission is to create real wealth for West Virginia by assisting entrepreneurs in obtaining the business development assistance and capital necessary to successfully launch new products into the commercial marketplace. Guy Peduto, Chris Morris & Patrick Gregg
1000 Technology Drive, Ste 1000
Fairmont, WV 26554
(304) 366-2577
(877) 363-5482
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www.INNOVAWV.org
Mountaineer Capital LP, provides venture capital to promising new and existing businesses in West Virginia and surrounding states. Initial investments are expected to range between $250,000 to $1 million. Mountaineer Capital is licensed as a Small Business Investment Company (SBIC) by the U.S. Small Business Administration. Patrick A. Bond & J. Rudy Henley
107 Capitol St., Ste 300
Charleston, WV 25301
(304) 347-7521
(304) 347-7520
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www.mtncap.com
The Natural Capital Investment Fund (NCIF), is a nonprofit certified Community Development Financial Institution that provides financing for natural resource-based businesses that will advance sustainable economic development throughout West Virginia. Marten R. Jenkins Jr.
Executive Director
1098 Turner Road
Shepherdstown, WV 25443
(304) 876-2815, ext 207
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www.ncifund.org
Novitas Capital, discovers companies at their earliest stages, thoroughly vets them and, upon typically leading investment rounds, takes an active role in facilitating their success. We believe that strong partnerships and relationships fuel growth and lead to success. We believe that entrepreneurs are the lifeblood of our work. Scott Nissenbaum
Managing Partner
Novitas Capital
1200 Liberty Ridge, Ste 310
Wayne, PA 19087
(610) 254-4241
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www.novitascapital.com
The Progress Fund, is a community development financial institution whose mission is to create economic opportunity by lending needed capital and providing technical assistance to small businesses in southwestern and central PA and WV. The Progress Fund provides opportunities for new and existing entrepreneurs, creates jobs with above average wages and grows the regional economy through its support of the tourism industry and other sectors. We have loaned more than $7 million to more than 116 enterprises, creating or preserving more than 750 jobs. Bob Pater
Commercial Loan Officer
425 West Pittsburg St
Greensburg, PA 15601
(724) 216-9160
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www.progressfund.org
Toucan Capital, a $140 million venture capital fund (SBIC) focused on seed and early-stage life science and advanced technology investments. Toucan invests nationwide and is one of the largest and most active venture capital funds in seed and early-stage life science. Toucan has also been an early investor in nanotechnology. Toucan is especially active in the mid-Atlantic region, one of the richest markets in the country for life science and certain advanced technologies, and a market that has generally been underserved by venture capital. Linda Powers
Managing Director
7600 Wisconsin Av, 7th Floor
Bethesda, MD 20814
(240) 497-4060
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www.toucancapital.com
West Virginia Economic Development Authority, is charged with the responsibility to develop and advance the business prosperity and economic welfare of the State of West Virginia, by providing financial assistance in the form of loans and direct financing and operating leases to industrial development agencies and enterprises for the promotion and retention of new and existing commercial and industrial development. WVEDA loans are secured by deeds of trust on property, security interests in equipment, promissory notes, and in certain cases, have supplemental collateral comprised of letters of credit, lease assignments and/or personal guarantees. David Warner
Executive Director
Northgate Business Park
160 Association Drive
Charleston, WV 25311
(304) 558-3650
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www.wveda.org
West Virginia Jobs Investment Trust (JIT), is a public venture capital fund created to develop, promote and expand WV’s economy by making investment funds available to eligible businesses, thus stimulating economic growth and providing or retaining jobs within the state. JIT invests in early stage, later stage and mature small companies who wish to expand. Opportunities to create a significant number of jobs while maintaining economic balance are favorable viewed. Economic diversification is a plus. To maintain its ability to assist others in the future, JUT makes investments expected to yield a financial return proportionate to the level of risk it assumes. JIT does not make grants or low-interest loans. Andrew Zulauf
Executive Director
1012 Kanawha Blvd E, 5th Floor
Charleston, WV 25301
(304) 345-6200
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www.wvjit.org

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