West Virginia State Tax Credits
More ways to save your hard-earned money from the tax man!
West Virginia has some great State Tax Credits for you....
Thank you so much for checking our resource out here for your state and congratulations for taking a proactive step to paying less in taxes. For your state, we have identified the tax credits that are currently being offered to help you pay less in state taxes.
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West Virginia Small Business Payroll Tax Credit (Article 13NN)
Overview:
This incentive offers up to $14,260 in payroll tax relief for new West Virginia small businesses with 15 or fewer employees, encouraging job creation and proper employment classification.
Who It’s For:
Newly formed businesses (after Jan. 1, 2024) in West Virginia with 15 or fewer employees, or businesses converting independent contractors to employees.
Four Key Highlights:
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Up to 100% Payroll Tax Relief in Year 1:
Eligible employers can claim a credit on 100% of payroll tax (2.73%) and $450 UI tax per employee—capped at $14,260 in year one. -
Three-Year Sliding Scale Credit:
The credit steps down to 66.6% in year 2 and 33.3% in year 3, promoting sustained employment growth while easing early-stage tax burdens. -
Flexible for Replacements & Contractor Conversions:
If an employee leaves, their replacement inherits the credit eligibility.
Businesses converting independent contractors to employees may also qualify. -
Carryforward & Documentation-Friendly:
Unused credits can be carried forward for 10 years. Employers must track regular employee hours (excluding OT) and maintain detailed records for compliance.
West Virginia High Wage Growth Tax Credit
Overview:
This program offers refundable tax credits to businesses that create at least 10 high-paying jobs for West Virginia residents, with a maximum annual credit of $100,000 per employer.
Who It’s For:
West Virginia employers creating high-wage, full-time jobs that include health benefits and demonstrate a net employment gain.
Four Key Highlights:
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Up to 10% Salary Credit:
Businesses may claim a refundable credit equal to 10% of total salaries paid to newly created high-wage jobs—capped at $100,000 per year. -
High-Wage Job Standards:
Eligible jobs must pay at least 2.25× the state median wage, be filled by WV residents, and include 50% employer-paid health benefits. -
Multi-Year Opportunity & Carryforward:
Employers may qualify for credits over three consecutive tax periods, and any unused credit can be carried forward for up to 10 years. -
Annual $5M Program Cap:
The state caps total credit approvals at $5 million per year, and employers must be certified by the WV Department of Economic Development before claiming.
West Virginia Economic Opportunity Tax Credit
Overview:
This incentive offers tax relief to businesses that create new, high-quality jobs in West Virginia. It provides up to 100% tax offset for companies meeting specific job creation and wage benchmarks.
Who It’s For:
Businesses expanding or relocating in West Virginia that create 10 to 20+ new full-time jobs, depending on size.
Four Key Highlights:
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Job-Based Tax Offset:
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Businesses creating 20+ new jobs (10+ for small businesses) can offset up to 80% of corporate or personal income tax.
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If jobs pay above the statewide median wage, the offset increases to 100%.
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Per-Job Credit Option:
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Companies creating fewer than 20 jobs (or 10 for small businesses) may still qualify for a $3,000 per job annual credit for 5 years—if jobs pay at least $35,700 and include health benefits.
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Broad Eligibility Across Entities:
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Applies to corporations and pass-through entities (e.g., LLCs, S-Corps) for use against personal income tax.
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Application & Compliance Required:
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Businesses must certify eligibility with the WV State Tax Department, track job creation and wages, and maintain compliance annually.
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West Virginia Corporate Headquarters Tax Credit
Overview:
This tax credit rewards businesses that relocate their corporate headquarters to West Virginia by offering up to 100% tax offset for 13 years on qualifying state taxes.
Who It’s For:
Companies relocating their main corporate headquarters to West Virginia and creating at least 15 new full-time jobs within the first year.
Four Key Highlights:
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Up to 100% Tax Offset for 13 Years:
Eligible businesses can reduce Business & Occupation (B&O) Tax, Corporate Net Income Tax, or Personal Income Tax (for pass-through owners) for over a decade. -
Minimum Job Requirement:
Must create 15 new jobs, including relocated staff, within 12 months of moving HQ operations. -
Strict Eligibility Criteria:
Credit applies only to corporate headquarters, not to branches or subsidiary offices. Must be certified by the WV Department of Economic Development. -
Ongoing Compliance Monitoring:
Companies must maintain job levels and operations in West Virginia throughout the credit period. Annual reporting may be required.
West Virginia Apprenticeship Training Tax Credit
Overview:
This tax credit supports businesses that employ registered construction trade apprentices in qualified U.S. Department of Labor-certified programs, offering up to $2,000 per apprentice annually.
Who It’s For:
West Virginia businesses in the construction industry employing apprentices registered with the U.S. Office of Apprenticeship and participating in certified training programs.
Four Key Highlights:
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$2 Per Hour Worked:
Employers receive a credit of $2 per apprentice hour worked, up to $2,000 per apprentice per tax year or 50% of wages paid, whichever is less. -
Strict Program Requirements:
Apprentices must be enrolled in a certified apprenticeship program with 2,000–10,000 hours of on-the-job training, per 29 U.S.C. § 50. -
Pass-Through Friendly Allocation:
Unused corporate tax credits can be passed through to personal income tax for S-Corps, partnerships, LLCs, and sole proprietorships—allocated based on profit-sharing rules. -
Use It or Lose It:
No carryforward or carryback is allowed—unused credits are forfeited, making timely use and accurate calculation essential.
West Virginia Small Business Property Tax Adjustment Credit
Overview:
This credit offers relief to small businesses with less than $1 million in personal property value, allowing them to claim 50% of their timely paid West Virginia personal property tax, minus any motor vehicle tax credit received.
Who It’s For:
Small businesses in West Virginia with $1 million or less in aggregate appraised personal property and no interests in oil, gas, or centrally assessed public services.
Four Key Highlights:
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50% Tax Credit on Timely Payments:
Businesses can claim 50% of their paid property taxes, provided the first half is paid before October 1 and the second half before April 1. -
Strict Eligibility Requirements:
Total appraised personal property—including related entities—must be under $1 million. Excludes companies in oil, gas, and public utility sectors. -
Profit-Based Allocation for Partnerships:
In multi-member pass-throughs, the credit must be split according to the profit/loss allocation reported on tax filings. -
No Double Dipping:
Property already counted for the Motor Vehicle Property Tax Adjustment Credit is excluded. You’ll need Form SB-1 and receipts to claim.