Paige Smith | Published Jun 26, 2025 9 Min
West Virginia may be one of the country’s most rural states, but the government has plenty of resources for business owners. Whether you want to start a business in West Virginia or strengthen your existing operation, state programs can help.
Keep reading for a list of the Mountain State’s business tax offerings, including tax credits, incentives, and exemptions.
West Virginia business tax incentives
Expansion tax credits
Corporate Headquarters Credit
The Corporate Headquarters Credit is available to companies that relocate their headquarters to West Virginia and create at least 15 new jobs in the state. Eligible businesses can get a credit equal to 10% of their relocation costs, which they can use to offset up to 100% of their business and occupation tax, corporate net income tax, and personal income tax.
Get more information on the credit here.
Find out what taxes you owe as a business owner in West Virginia.
High Wage Growth Tax Credit
West Virginia businesses that create a certain number of high-paying jobs, with health benefits, can qualify for the state’s High Wage Growth Tax Credit. To qualify, businesses have to create a minimum of 10 jobs that pay at least 2.25 times the state median salary.
The amount of credit varies based on how many jobs a business creates, what wages they provide, and the economic impact their business has on their community.
Economic Opportunity Credit
The Economic Opportunity Credit incentivizes West Virginia businesses to create new jobs and expand their operations. Small businesses can get a $3,000 credit per job (for a period of five years) for creating 10–20 new full-time jobs within a certain timeframe. To qualify for the credit, the new jobs have to pay at least $35,700 per year and include health insurance.
Related: Here’s a step-by-step guide to hiring new employees in West Virginia.
Industry-specific business tax credits
High-Tech Manufacturing Credit
West Virginia’s High-Tech Manufacturing Credit is designed for businesses that manufacture computers, electronics, and semiconductors. Eligible businesses that create at least 20 new jobs in West Virginia can get a tax credit to offset up to 100% of their corporate net income tax and personal income tax.
Manufacturing Inventory Credit and Manufacturing Invest Credit
West Virginia offers two tax credits to businesses that carry manufacturing inventory or invest in manufacturing property.
- Manufacturing Inventory Credit: Businesses can take a credit against their corporate net income tax, based on the property tax they’ve paid on raw materials, goods in process, and finished goods manufacturing inventory.
- Manufacturing Investment Credit: Businesses can receive a credit against up to 60% of their corporate net income tax, based on their investment in eligible manufacturing property (like equipment or machinery).
Tourism Development Act
Under the state’s Tourism Development Act, tourism businesses undertaking development and expansion projects can get a sales tax credit to reduce their monthly sales tax returns. The credit is equal to 25% of their project costs.
Projects are eligible for a 35% tax credit if their business is located in one of the following:
- On an abandoned surface mine
- On or adjacent to a state or national forest or park
To qualify for the credit, a business’s project has to meet the following requirements:
- Require at least $1 million in capital investment
- Attract at least 25% of its visitors from out of state
- Be open to the public at least 100 days per year
- Create jobs for West Virginia’s tourism industry
- Have a positive impact on the state
Learn more about the Tourism Development Act here.
Environmental Agricultural Equipment Credit
Businesses that buy and install certain types of agricultural equipment can qualify for the Environmental Agricultural Equipment Credit. The credit is equal to 25% of equipment expenses, up to $2,500.
Qualifying equipment includes the following:
- Advanced technology pesticide and fertilizer application equipment
- Conservation tillage equipment
- Dead poultry composting facility
- Mortality incinerator
- Nutrient management system
- Stream-bank and shoreline protection system
- Stream channel stabilization system
- Stream crossing or access plan
- Waste management system
- Waste storage facility
- Waste treatment lagoon
Download the form to claim the credit here.
Telephone Utilities Rate Reduction Credit
This credit is available to companies that provide reduced-rate telephone services to low-income residential customers. The amount of credit is equal to the cost of providing the service. Claim the credit on this form.
Electric, Natural Gas, and Water Utilities Rate Reduction Credit
Public utility companies in West Virginia can get a credit for providing electric, natural gas, and water utility services at reduced rates to low-income residential customers. The amount of credit is equal to the annual revenue lost from offering the reduced rates.
Use this form to claim the credit.
Apprenticeship Training Tax Credit
Construction businesses that hire apprentices in construction trades can qualify for West Virginia’s Apprenticeship Training Tax Credit. The credit is $2 per hour multiplied by the total number of hours worked during the tax year, up to $2,000 or 50% of the actual apprenticeship wages, whichever is less.
To qualify, a business must implement an apprenticeship training program that’s between 2,000 and 10,000 hours of on-the-job learning. Claim the credit here.
West Virginia Farm-to-Food Bank Tax Credit
The Farm-to-Food Bank Tax Credit incentivizes West Virginia farmers to donate their goods to local food banks. The credit is equal to 30% of the value of a farm’s donated edible agricultural products to one or more nonprofit food programs in this state. The maximum credit amount is $5,000.
Apply for the tax credit here.
Innovative Mine Safety Technology Credit
The Innovative Mine Safety Technology Credit rewards coal mining companies in West Virginia for purchasing approved mine safety technology, like cameras and proximity detection systems.
The amount of credit is equal to 50% of the cost of eligible safety tools and equipment. The credit expires by December 31, 2025, so apply for it now if you qualify.
General business tax credits
Jumpstart Saving Programs and Credits
The West Virginia Jumpstart Savings Program is a state-run career savings account that West Virginia workers can use to save for tools, supplies, equipment, licensing and certification, and other business costs.
Businesses that contribute to their employees’ Jumpstart Savings Accounts can get a tax credit of up to $5,000 per year per employee. Find out how to claim the credit here.
Tax Credit for Employers Providing Child Care for Employees
West Virginia businesses can get tax credits for providing child care for their employees’ children. There are two types of credit geared toward for-profit businesses:
- Investment Credit: A credit of 50% of the cost of qualified child care property
- Operating Costs Credit: A credit equal to 50% of the operating costs of the child care facility
Learn more about how to qualify and which forms to download here.
Military Incentive Credit
The Military Incentive Credit encourages West Virginia businesses to hire former military members, specifically: 1) disabled veterans, 2) economically disadvantaged veterans, and 3) members of the National Guard and reserve forces. The credit amounts vary:
- Disabled veterans: Credit is equal to the percentage of disability multiplied by the employee’s first $5,000 in wages
- Economically disadvantaged veterans: Credit is equal to 30% of the employee’s first $5,000 in wages
- Members of the National Guard and reserve forces: Credit is equal to 25% of the first $5,000 in wages
To qualify, the veteran needs to be certified by WorkForce West Virginia and remain employed for one year. Download the form here.
Natural Gas Industry Jobs Retention Act Credit
The Natural Gas Industry Jobs Retention Act Credit supports businesses affected by the state’s natural gas storage provisions under the Business and Occupation Tax. Eligible businesses can get a $1,000 credit for each of their full-time employees (defined as people who work at least 1,500 hours a year).
To qualify, a business has to employ at least 60% of the employees that the business had as of January 1, 1996. Fill out this form to claim the credit.
Neighborhood Investment Program Credit
This credit rewards businesses for donating to community-based nonprofit organizations that invest in projects around healthcare, crime prevention, education, housing, and more.
The amount of credit is equal to up to 50% of the business’s contribution, up to $100,000 per year. The minimum donation amount to qualify for a credit is $500, and the maximum is $200,000.
Check out this form to claim your credit.
Historic Rehabilitated Buildings Investment Credit
West Virginia businesses can qualify for the Historic Rehabilitated Buildings Investment Credit if they help restore a certified historic structure within the state. The credit is equal to 25% of the rehabilitation expenses.
To qualify for the credit, businesses must get their project certified by the National Park Service and be up to date on all their state, local, and municipal taxes. Learn more about the credit and how to apply here.
Business tax exemptions in West Virginia
West Virginia also offers a variety of tax exemptions to qualified businesses. Here are some to note:
- Research and Development Sales Tax Exemption: Businesses don’t have to pay sales tax on purchases of personal property and services used directly in research and development activities.
- Sales Tax Exemption for Certain Warehouse and Distribution Centers: Businesses don’t have to pay consumer sales and service tax on purchases of certain tangible personal property in qualified warehouse and distribution centers.
- High Technology Valuation Act: Eligible high-tech and internet advertising businesses don’t have to pay sales tax on purchases of prewritten computer software, computers, hardware, servers, building materials, and tangible personal property.
- Manufacturing Sales Tax Exemption: Manufacturing companies don’t have to pay sales and use tax or municipal sales tax on purchases of materials and equipment for direct use in manufacturing, including building materials and process equipment.
- Sales Tax Exemption for Certain E-Commerce Businesses: Certain e-commerce businesses don’t have to pay sales and services tax on certain computer-related sales of tangible personal property and services.
Get more information on the exemptions here.
Local business tax credits
Tax credits aren’t just available at the state level. Plenty of West Virginia cities and counties offer their own business tax advantages. Morgantown, for example, has a New and Expanding Business Tax Credit for eligible construction projects in the downtown district. And new businesses in Parkersburg can apply for the city’s New Business Tax Credit Program.
Search your city’s website to find out what your options are.
West Virginia business financing
Growing businesses need all the financial help they can get. Fortunately, tax credits and incentives aren’t your only source of relief if you’re a West Virginia-based business. You can also tap into the state’s business grants and loans.
