BUSINESS INCENTIVES
Opportunity Zones
The City of Huntington contains three census tracts that have been designated by the Federal Government as “Opportunity Zones.” Individuals utilizing Qualified Opportunity Funds (QOFs) to invest in new business ventures in these areas are eligible for deferments of some capital gains taxes from the Federal Government. Purpose: Investors will benefit by deferring capital gains on investments within the Opportunity Zones. Also, any new business created within an Opportunity Zone is exempt from corporate and personal income tax for 10 years.
The West Virginia Opportunity Zone is separate from the federal Opportunity Zone and does not require creating an opportunity fund. To qualify for the corporate net income state tax exemption, the business must have been newly registered between January 1, 2019 and January 1, 2024.
To find where these tracts are located please view the following map. To read more about the program and how to use qualified opportunity funds, please visit: https://www.irs.gov/credits-deductions/businesses/opportunity-zones.
B&O Tax Reductions for Businesses
Back office operations– New administrative office locations employing 50 or more full-time employees are eligible for partial exemptions of B&O taxes. Within the first three years of operation, the business is eligible for a tax credit of 50% of its B&O taxes due.
See Article 787.54 for conditions
New and existing business in Kinetic Park – Within the Kinetic Park Development, new technology-based businesses, companies providing administrative support, or retail and service-based business who meet the eligibility requirements are eligible for reduced B&O tax rates.
See Article 788 for terms and conditions
Housing Incentives
City-sponsored initiatives
New construction or renovation of single family residences – Contractors selling newly constructed or newly renovated single family homes to first-time home buyers are eligible for an exemption of B&O taxes on gross revenues up to $200,000.00.
See Article 787.61 for terms and conditions
New construction and/or renovation and remodeling for for-profit companies – When a project is exceeding $5,000,000 (including land-acquisition costs) and creates at least 20 new jobs as a result of said construction; a city B&O tax credit of 50 percent for all construction expenses is available, provided the business, general constructor and any subcontractors of said business are current on all other city fees, taxes, and permits.
See Article 787.54 for terms and conditions
State-sponsored Initiatives
BUILD WV ACT - BUILD WV to assists growing communities in WV by incentivizing the creation of new housing in select WV areas. Huntington is one of these communities. Eligible WV BUILD projects will qualify for the following state-wide benefits:
- An exemption from consumer sales and purchase tax for purchases of building materials, tangible personal property, and construction services.
- A Property Value Adjustment Credit (PVAC) can be taken against personal or corporate income tax for eligible taxpayers and is refundable up to $100,000.00 per project annually for 10 years following the project’s completion.
For more information on BUILD WV and to see if your project may qualify, please visit https://www.cityofhuntington.com/business/build-wv-district/.
Workforce Development
Governor’s Guaranteed Workforce program – This program provides financial and technical assistance to West Virginia’s new and expanding businesses for training, retraining, or for upgrading the skills of existing and new employees. The program emphasizes employee training specifically designed to accommodate the needs of individual employers. This incentive pays 50% of training expenses up to $2,000.00 for companies in qualified fields. For more information please visit https://westvirginia.gov/incentives-and-programs/workforce-programs/.
Region II workforce WV “on the job training” Grant – This federally funded grant pays for %50 of a new hire’s wages up to $18.50/hr for the first 300 hours of employment. Employees must be recently displaced, meet income qualifications on their previous tax return, and be registered with the Region II Workforce System. To find out more, visit https://www.wvregion2.org/employers/education-training/.
“Learn and Earn” – This program works through WV’s Community and Technical College System to cover 50% of an employee’s salary for those working in positions that are related to their degree field. For more, visit https://www.mctc.edu/career-services/learn-earn/.
