Budget & Taxes (Economic Development)

SB 1, the Small Business Growth Act, creates a new tax credit program administered by the West Virginia Department of Commerce to incentivize investment in small businesses. It provides insurance companies with a credit against their state premium tax equal to 15% of qualifying capital investments made by certified "growth funds" into eligible West Virginia businesses. Eligible businesses must have fewer than 250 employees and principal operations in the state, and investments are limited to 20% of a growth fund's capital authority or $7.5 million per business. The credit is claimed annually based on certified investments, with the program requiring annual reporting and prohibiting certain investment types.

HB 4162 creates a tax credit program to encourage property rehabilitation in West Virginia. It provides businesses and property owners a 25% credit (up to $2 million) on eligible renovation costs or a 50% credit on increased property value (annual for 5 years), requiring a $50,000 investment, 30% value increase, and 5 years of active commercial use. Additional credits (up to 15% total) apply for projects in rural areas (population <50,000, high unemployment, or designated zones), brownfield sites, or registered historic properties. The program is budget-neutral, capped at $50 million annually, and requires annual reporting on investments, jobs created, and property use.

SB 131 creates a tax credit against West Virginia's severance tax for businesses that make qualifying investments in road/highway infrastructure improvements or coal production/processing facilities. It directly affects coal industry businesses and infrastructure developers in coal-producing regions by allowing them to reduce their severance tax liability. The credit covers costs for labor, materials, and real property improvements tied to certified road projects or coal facilities, with applications required through the Transportation Secretary. Unused credits can be carried forward, and the credit may be transferred to successors. This policy aims to incentivize private investment in infrastructure and coal sector capital projects.

HB 4500 authorizes Berkeley County Commission to levy a special excise tax on sales of tangible personal property and services within the Berkeley County Economic Opportunity Development District. This tax would fund economic development initiatives in the designated district, directly affecting businesses operating within its boundaries and residents who purchase taxable goods or services there. The bill specifies that the district will remain active until 2054, unless terminated earlier under existing law, and aligns with similar provisions for other counties’ economic districts. The tax is limited to sales within the district’s defined boundaries and must be approved through required legislative processes.