City Incentives
Please see the below programs. For more information regarding the City of Parkersburg’s Economic Development Incentive Programs, please call 304.424.8542 or email Ryan Barber at Ryan.Barber@parkersburgwv.gov, City of Parkersburg Development Director.
County Incentives
Based upon the type and number of new jobs to be created, the total capital investment for a project, and a review of the company’s financial statements, the Wood County Development Authority can offer companies that establish new facilities the below types of incentives.
The purpose of this program is to encourage the new construction and rehabilitation or revitalization of existing multi-family dwellings in the City of Parkersburg. The tax credit may only be taken when an otherwise qualifying business files the required business and occupation tax return on or before the required due date. If said return is not filed timely then the credit will be disallowed for the time period in which the return is delinquent. The maximum credit allowed shall not exceed the total cost of the capital investment made in the construction, rehabilitation, revitalization or modernization of the multi-family dwelling.
The purpose of this program is to encourage the rehabilitation, revitalization, re-occupancy and use of vacant residential, commercial, and industrial buildings in the City of Parkersburg. A qualifying business will be permitted a tax credit up to one hundred percent (100%) of its business and occupation tax liability annually for a period of five (5) consecutive years from and after such capital improvement is placed into service or the building is occupied, whichever first occurs. The tax credit shall not exceed the total cost of its actual expended capital investment on the building renovation.
The first few years of operation are critical to a new business’s long-term success. This program was created to assist new business development, by reducing Business & Occupations Taxes paid to the City during this time. To be eligible, a new business must be located in the City of Parkersburg, create at least five (5) full-time jobs (or equivalent) and maintain those jobs for at least four (4) years.
The City of Parkersburg recognizes that businesses and developers have a choice in terms of where they locate. To encourage more investors to locate their project and/or business in the community, the City makes available a tax rebate application to newly annexed developments. Upon certification from the City Engineer that all work to be performed has been completed to City specifications, 100 percent of the taxes collected on construction activity within the newly annexed development, including taxes paid by prime and subcontractors, shall be rebated to the developer.
The Wood County Development Authority's quasi-governmental status can be deployed to help developers and companies control costs of constructing a new building through a sales tax exemption on the purchase of project construction materials. As such, the Development Corporation’s ownership of the asset is a condition of using this incentive. For a sizeable project, this financing structure can reduce construction costs dramatically. Contact us for more information.
A PILOT program provides payments to counties and other local governments to offset losses in tax revenues due to the presence of tax-exempt land in their jurisdictions. Contact us for more information.
The Mid-Ohio Valley Regional Council (MOVRC) offers loans that range from $2,000-$250,000 that can be used for any business need including: business expansion, working capital, new construction, new equipment and much more. These loans can fund up to 75% of a project but cannot be used to refinance existing debt. Visit www.movrc.org to view these loan options and other programs they offer.
State law allows for the negotiation of a TIF incentive to redirect property taxes paid on improvements to a property or properties to be redistributed towards paying for a public infrastructure improvement made by a community or a private developer.
State Incentives
The following are basic descriptions of the state incentive programs. Our team is happy to arrange a meeting with the West Virginia Department of Economic Development and your team to explore potential state incentives. These incentives are explained in more detail below.
The purpose of this program is to encourage the new construction and rehabilitation or revitalization of existing multi-family dwellings in the City of Parkersburg. The tax credit may only be taken when an otherwise qualifying business files the required business and occupation tax return on or before the required due date. If said return is not filed timely then the credit will be disallowed for the time period in which the return is delinquent. The maximum credit allowed shall not exceed the total cost of the capital investment made in the construction, rehabilitation, revitalization or modernization of the multi-family dwelling.
The Commercial Patent Incentives Tax Credit can offset up to 100 percent of the corporation net income tax, or in the case of individual taxpayers, the personal income tax. The credit is based on a percentage of royalties, license fees and other considerations for developers of a patent or a percentage of net profit attributable to a patent used in a manufacturing process or product when that patent has been developed in conjunction with an agreement with Marshall University or West Virginia University.
Companies that relocate their corporate headquarters to West Virginia are eligible for tax credits if 15 new jobs (including relocated employees) are created within the first year. The credit can offset up to 100 percent of the tax liability for business and occupation tax, corporate net income tax, and personal income tax on certain pass-through income, for a period of up to 13 years.
For qualified companies that create at least 20 new jobs within specified time limits (10 jobs in the case of qualified small businesses) as a result of their business expansion projects, the State’s Economic Opportunity Tax Credit can offset up to 80 percent of the corporate net income tax and personal income tax (on flow-through income only) attributable to qualified investment. 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 percent of the corporate net income tax and personal income tax (on flow-through income only) attributable to qualified investment.
For qualified businesses creating less than 20 new jobs within specified time limits, or for a qualified small business creating less than 10 new jobs, a $3,000 credit is allowed per new full-time job for five years, providing the new job pays at least $32,000 per year and the employee has employer-provided health insurance benefits. The $32,000 figure is adjusted annually for cost of living.
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.
For qualified companies that create at least 20 new jobs within specified time limits (10 jobs in the case of qualified small businesses) as a result of their business expansion projects, the State’s Economic Opportunity Tax Credit can offset up to 80 percent of the corporate net income tax and personal income tax (on flow-through income only) attributable to qualified investment. 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 percent of the corporate net income tax and personal income tax (on flow-through income only) attributable to qualified investment.
For qualified businesses creating less than 20 new jobs within specified time limits, or for a qualified small business creating less than 10 new jobs, a $3,000 credit is allowed per new full-time job for five years, providing the new job pays at least $32,000 per year and the employee has employer-provided health insurance benefits. The $32,000 figure is adjusted annually for cost of living.
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.
For 25 years, qualified plants receive a special property tax valuation of five percent of the cost of the qualified property instead of fair market value.
Special property tax valuation applies for 10 years to real property (excluding the value of unimproved land) and personal property of facilities that are or will be classified under the North American Industry Classification System (NAICS) with the six-digit code number 211112 (natural gas liquid extraction “fractionating“ plants) and to manufacturing facilities that use products produced at a facility with a 211112 NAICS code.
The special property tax valuation applies to qualified capital additions of more than million made to pre-existing manufacturing facilities that have a value in place before the capital addition of more than million. The special property tax valuation is 5 percent of the cost of the qualified property instead of fair market value.
In the absence of a pre-existing manufacturing facility owned or operated by the person making the capital addition, multiple party projects may be established to meet the million pre-existing investment requirement.
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 percent of the business and occupation tax, corporate net income tax, and personal income tax on certain pass-through income for 20 consecutive years.
Tangible personal property, including servers, directly used in a high-technology business or in an internet advertising business, is valued for property tax purposes at five percent of the original cost of the property. In addition, sales tax is eliminated from all purchases of pre-written computer software, computers, computer hardware, servers, building materials and tangible personal property for direct use in a high-technology business or internet advertising business.
For lodging stays in excess of 30 consecutive days per person at the same facility, there is an exemption from the state consumers sales and service tax (six percent) and exemption from the local hotel/motel tax (tax rate varies per region.)
Offsets the corporate net income tax in the amount of property tax paid on raw materials, goods in process and finished goods manufacturing inventory.
A tax credit is allowed against up to 60 percent of corporate net income tax and based on qualified investment in eligible manufacturing property, with no new job creation required.
Purchases of materials and equipment for direct use in manufacturing are exempt from the six percent state sales and use tax, including building materials and process equipment purchased for construction of a manufacturing facility.
Purchases of tangible personal property and services directly used in research and development are exempt from the consumer sales tax.
Some computer-related sales of tangible personal property and services are exempt from the consumer sales and services tax.
Purchases of certain tangible personal property in qualified warehouse and distribution centers may be exempt from the consumer sales and service tax.
Allows increases in property tax based on the improvement associated with qualified economic development and public improvement projects to assist with their long-term financing.
In order to extend advertising resources for the promotion of tourism through partnerships, this program provides reimbursable matching funds for direct advertising. Business applicants and their partners must provide a minimum of 50 percent of the total cost for programs at the, 000 + level. For programs not exceeding, 500, business applicants must provide 25 percent of the total cost.
Up to 31 percent of direct-production and post-production expenditures can be converted to transferable tax credits to offset state taxes. Also, purchases and rentals of tangible personal property and purchases of services (excluding gasoline or special fuel, food or beverages) directly used in the activity of manufacturing a motion picture, TV program, music video, or commercial are exempt from the consumer sales and service tax and use tax.
DIRECT FINANCIAL
ASSISTANCE
ON THE JOB TRAINING
OPPORTUNITIES
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. Loan term is generally 15 years for real estate intensive projects and five to 10 years for equipment projects. Loan proceeds may be used for the acquisition of land, buildings and equipment. Working capital loans and the refinancing of existing debt are not eligible.
The West Virginia Economic Development Authority provides a loan insurance program through participating commercial banks to assist firms that cannot obtain conventional bank financing. This program insures up to 80 percent of a bank loan for a maximum loan term of four years. Loan proceeds may be used for any business purpose except the refinancing of existing debt.
This program provides for customized financing through federal tax-exempt industrial revenue bonds. Of the state’s bond allocation, $59,757,600 is reserved for small manufacturing projects; $17,073,600 for qualifying projects in Enterprise Communities, and $93,904,800 for exempt facility projects.
The fund can be used for financial assistance to private companies, public utilities, and county development authorities for infrastructure improvements to support economic development projects.
West Virginia Jobs Investment Trust (JIT) is a public venture capital fund created to develop, promote and expand West Virginia’s economy. The program makes investment funds available to eligible businesses, thus stimulating economic growth and providing or retaining jobs within the state.
On-the-Job Training (OJT) provides unique opportunities for participants to “learn as they earn.“ By participating in training as an employee, the participant not only acquires new skills and knowledge, but also receives the same wages and benefits as current employees in same or similar positions. The employer benefits by being reimbursed for part of the participant’s wages during the training period, while having the services of a full-time employee.
The Governor’s Guaranteed Work Force Program provides a one-step service for all economic development-related job training needs. Under this program, the State of West Virginia will pay up to 100% of new or existing employees’ cost of training. Up to $2,000 per employee is allowed. Workforce WV offers up to one year salary for qualified employees through its ESP program.
Let’s Train WV provides employers with access to a new pool of candidates with untapped potential to become highly-skilled, dedicated employees. It allows employers to train employees their way at their worksite. Employers receive paid training for employees up to 6 months, wage reimbursement up to $10,000 per eligible recipient and the ability to custom design training programs to meet specialized company needs.
The Workforce Innovation and Opportunity Act (WIOA) was created to provide state and local areas the flexibility to collaborate across systems in an effort to better address the employment and skills needs of current employees, jobseekers, and employers.
The Workforce Innovation and Opportunity Act aligns training with needed skills and matches employers with qualified workers. It provides incumbent worker training and promotes work-based training— increasing on-the-job training reimbursement rates to 75 percent. On-the-Job Training (OJT) provides opportunities for participants to “learn as they earn.“ The employer also benefits by being reimbursed for part of the participant’s wages during the training period, while having the services of a full-time employee.
This flexible program offers customized job training awards to new and existing businesses. The program offers development and delivery of training services that will support a company’s startup and ongoing employee development initiatives through a local Community and Technical College.
