WHAT WE DO

Incentives – State & Local

 

Working with the State of West Virginia, Roane County can provide incentives and benefits allowing companies locating here to be established with less capital and with greater savings, both in the short and long term. Some of the available incentives include tax credits, low-interest loans, training grants, infrastructure improvements, as well as customized local inducements. The following are basic descriptions of the region’s incentive programs. We would be happy to meet with you and arrange meetings with your team and the West Virginia Development Office (WVDO) to explore potential incentive programs. These incentive programs are explained in more detail below.


LOCAL

  • Reduced Price for land to build a new facility
  • “At cost” building construction and lease back
  • Buy down of lease cost on constructed facility
  • Financing of equipment and building

For more information on the above incentives, please contact Roane County Economic Development Authority at (304) 927-5189


STATE

Corporate Headquarters Credit

Companies relocating their corporate headquarters to W. Va. from outside of W. Va. are eligible for tax credits. If 15 new jobs are created, the credit could be up to 100% of many tax liabilities for up to 13 years.

Economic Opportunity Credit

Offsets up to 100% of taxes for up to 13 years. Minimum job requirement is 20.

Manufacturing Investment Credit

Allows up to 60% corporate net income tax and franchise tax credit, based on investment, with no new job creation required.

Manufacturing Sales Tax Exemption

Materials and equipment purchased for direct use in manufacturing are exempt from the 6% state sales and use tax.

For more information on state incentives

Aircraft Valuation

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.

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.

Commercial Patent Incentives Credit

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.

Corporate Headquarters Credit

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.

Economic Opportunity Credit

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.

The Freeport Amendment

The Freeport Amendment exempts property from the West Virginia ad valorem property tax in two ways. First, manufactured products produced in West Virginia and stored in the state for a short time before moving into interstate commerce are exempt from property tax. Second, goods transported into West Virginia from outside of the state, which are held for a short time in a warehouse and then shipped to a destination outside of West Virginia, are exempt from the property tax. The exemption does not apply to inventories of raw materials or goods in process.

Five for Twenty-Five Program - $2 Billion Primary (Fractionating) Plants, Secondary Plants and Tertiary Plants

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.

Five for Ten Program - Fractionating Plants and Secondary Plants

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.

High-Tech Manufacturing Credit

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.

High Technology Valuation Act (Data Centers)

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 prewritten computer software, computers, computer hardware, servers, building materials and tangible personal property for direct use in a high-technology business or internet advertising business.

Lodging Exemptions

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.)

Manufacturing Inventory Credit

Offsets the corporate net income tax in the amount of property tax paid on raw materials, goods in process and finished goods manufacturing inventory.

Manufacturing Investment Credit

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.

Manufacturing Sales Tax Exemption

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.

Research and Development Sales Tax Exemption

Purchases of tangible personal property and services directly used in research and development are exempt from the consumer sales tax.

Sales Tax Exemption for Certain Warehouse and Distribution Centers

Purchases of certain tangible personal property in qualified warehouse and distribution centers may be exempt from the consumer sales and service tax.

The Tourism Matching Advertising Partnership Program

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.

West Virginia Film Industry Investment Act

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.


TAX CREDITS

The Historic Tax Credit (HTC)

The Historic Tax Credit (HTC) program encourages private-sector investment in the rehabilitation and re-use of historic buildings. The federal tax credit allows program participants to claim 20% of eligible improvement expenses against their federal tax liability.

The State of West Virginia offers a comparable historic tax credit of 25% that is able to be paired with the federal tax credit; therefore, an eligible project could qualify for up to 45% of tax credits for the renovation of a histrionic building.

The property MUST be a certified historic building and listed on the National Register of Historic Places

Click below for These Helpful Resources:

Historic Tax Credit Tool Kit -

Historic Tax Credit Interactive Road Map

New Market Tax Credits

The New Market Tax Credits (NMTC) Program attracts private capital into low-income and/or distressed communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments in specialized financial intermediaries called Community Development Entities (CDEs)

When utilized, NMTC can account for a 20-30% reduction in the overall cost of a project.


Read About the Ways We Can Offer Direct Financial Assistance.

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. 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.

Indirect Loans 

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.

Industrial Revenue Bonds 

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.

West Virginia Infrastructure and Jobs Development Council

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

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 Opportunities.

Governor’s Guaranteed Work Force Program

The Governor’s Guaranteed Work Force Program (GGWFP) provides new and expanding businesses with technical and financial assistance to train, retrain and upgrade the skills of their employees. Overall funding levels are based on wages and benefits, location of facilities, number of employees and number of individuals needing training. Small businesses eligible for this program may receive up to 75 percent of actual training cost (maximum of $5,000) for preapproved technology, technical and regulatory compliance training. Since the program’s launch, more than $54 million has been awarded to employers and nearly 200,000 employees have received training.
http://westvirginia.gov/files/docs/ggwfp/ggwfp-annual-report-2017.pdf

Let’s Train WV

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.

Workforce Innovation & Opportunity Act

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.

West Virginia Advance Program

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.

 

 

 

Start-Up Support

STEPS TO GET STARTED

There are 4 steps to starting a business:

STEP 1

IDENTIFY YOUR DREAM BUSINESS

Do you want to open a Bakery? Do you have a great invention that could be manufactured in Roane County? Before our initial meeting, ask yourself the following questions:

1. Is there a demand for any of the businesses that you are considering?

2. Get an understanding of how said business will work. What supplies do you have to purchase and how much capital you will need to move forward?

3. What is your target audience?

4. Do you want to operate a home-based business? An online store? Bricks and mortar?

IS THERE A MARKET FOR YOUR BUSINESS IN ROANE COUNTY?

At our initial meeting, we can discuss your business idea(s) to gather as much information as possible to see if there is a market for it in Roane County. Our office is happy to put you in contact with one of our many partners to conduct a market study to ensure that Roane County is a place where your business can be a success!

STEP 2

PLANNING YOUR BUSINESS

Before you seek out investors or funding for your upcoming business, be sure to create a business plan. Business plans are required by lenders and allow you to showcase your credentials and generally projects 3-5 years ahead while outlining the route a company intends to take to grow revenues. Need help getting started with your business plan?

- SCORE.org offers business plan templates for a variety of industries. Visit the site, complete a questionnaire and it builds a plan for you.

Prefer more hands-on assistance? West Virginia University at Parkersburg has a fantastic Small Business Development Center that can assist you with the following:

  • Business Consultation
  • Pre-Venture Counseling
  • Capital Formation
  • Business Plans
  • Training Programs
  • SmallBizU

To take advantage of the services offered by WVUP’s Small Business Development Center, please contact Marsa Myers at 304-424-8213 OR by email.

ALREADY HAVE A BUSINESS PLAN?

Great! Now is a great time to decide on the legal format of your business. Many businesses choose the Limited Liability Corporation (LLC) format due to the legal protections it provides. Consult with a legal professional for advice on which legal format is best for your business.

Once you have chosen a format and incorporated, you will need to filed for an IRS Employer Identification Number (EIN) and file your business with the West Virginia Secretary of State.

STEP 3

FUNDING YOUR BUSINESS

Now that you’ve completed your business plan and have filed for a business license, it’s time to start thinking about how you will fund your new business! Capital access can be one of the more challenging processes when an entrepreneur starts a new business or is even in the process of growing one.

We are here to help you discuss your options which include:

TRADITIONAL LOCAL AND REGIONAL BANKS

Roane County has a number of small and large banks that all have a different approach to lending. Often, we encourage entrepreneurs to start with traditional banks to see what can be done before seeking out other sources of funding. We are happy to assist you in scheduling appointments and making contacts with your local bank.

CREDIT UNIONS

Some Credit Unions have started small business lending programs. Unlike a traditional bank, credit unions are member-owned and have different approaches to lending.

ANGEL FUNDS AND VENTURE CAPITAL

Angel funds are groups of investors who will combine financial resources to either invest in a business individually or individually. Venture Capital is a type of equity financing where the investors provide money in exchange for equity in the company and manage that equity through active participation in the company. These can be longer term investments than angel funds or even traditional banks and are not considered debt because they are equity capital.

MID-OHIO VALLEY REGIONAL COUNCIL REVOLVING LOAN FUND

The RLF program is loan used for any business need including:

Business Expansion

Working Capital

New Construction

New EquipmentThese loans range from $2,000-$250,000 and can fund up to 75% of projects; however, RLF money cannot be used to refinance existing debt. To apply for the MOVRC Revolving Loan Fund, click here.

STEP 4

LOCATING YOUR BUSINESS

Business plan? Check! Funding? Check! Now it’s time to begin property shopping. Let us help! Click here to visit our commercial and industrial database of properties that are for sale or for lease in Roane County!

We are here as a resource to YOU. Need help contacting a landlord? Need assistance finding out who owns a vacant building? Email us.


 

 

STEPS TO GET A WV BUSINESS LICENSE

There are 4 steps to getting a WV business license:

STEP 1

RESEARCH NAME

To make sure the business name you want to use is not already licensed visit:

http://apps.sos.wv.gov/business/corporations/

STEP 2

REGISTER YOUR ACCOUNT

For a tutorial on registering for your state account visit:

http://www.sos.wv.gov/business-licensing/forms/Documents/B4WV%20Online%20Business%20Registration%20Instructions.pdf

This link will lead you into the registration process.

STEP 3

GET YOUR FEIN

In order to get a business license, you will need to obtain a Federal Employer Identification Number (FEIN) from the IRS. FEIN’s are free and can be obtained online. Visit: www.irs.gov, and
type in FEIN in the search box.

You’ll need the FEIN in order to finish the registration for the business license, so be sure to write it down when it comes up on the IRS screen. A hard copy will be sent to you via mail as
well.

STEP 4

QUESTIONS?

For any other questions, visit: http://www.sos.wv.gov/business-licensing/Documents/StartingABusinessGuide.pdf

 


 

Workforce Prep

The Roane County Development Authority partners with organizations to provide funding towards flexible, customized training programs that offer assistance to businesses and directly supports the transfer of knowledge and skills.

The Roane County Economic Development Authority offers two training grants with goals of attracting new enterprises to West Virginia and encouraging growth and the expansion of West Virginia businesses and companies. The Governors Guaranteed Workforce (GGWFP) and Workforce Investment (WIA) provide training and technical assistance to support effective employee training strategies, ease individual access to training tools needed to manage careers and to support businesses in finding skilled workers to manage, compete and succeed in today’s business world.

 

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CONTACT US

  • Office:

    216 Market Street, Suite 100,
    Spencer, WV 25276

  • Office Hours:

    Monday - Friday

  • Phone:

    Office: (304) 927-5189
    Fax: (304) 927-5953

    director@roanechamberwv.org