BUILD WV – Housing Development Tax Credit
Passed in the 2022 Legislative Session, the BUILD WV Act aims to assist West Virginia’s growing communities in attracting much-needed housing development projects. The credit offers a State Sales and Use Tax exemption for building materials and a 10-year property value adjustment refundable tax credit to offset building costs. West Virginia is one of the fastest growing in-bound states, and the demand for new, residential properties has never been higher.
The West Virginia Department of Economic Development (WVDED) oversees the program and reviews all applications. A non-refundable application fee of $5,000 is required to apply. Projects must apply and be approved prior to the completion of construction.
The BUILD WV Act allows for the following incentives for approved BUILD WV Projects:
- Sales Tax Exemption – Purchases of building materials, tangible personal property, and services by a construction contractor or subcontractor directly used in the construction of a certified BUILD WV project are exempt from consumer sales and service tax.
- Property Value Adjustment Credit (PVAC) – PVAC credit can be taken against personal or corporate income tax of the eligible taxpayer, beginning in the tax year in which construction of the project property is completed and ending in the 10th taxable year thereafter. This tax credit is refundable, up to $100,000 per project.
- Potential for B&O Tax Exemption – To be determined by individual municipalities, authorized by an ordinance.
Please read WV §5B-2L-7, §5B-2L-8, §5B-2L-9, §5B-2L-10, §5B-2L-11 for additional specifications and requirements.
Projects eligible for the BUILD WV Act will meet the following criteria:
- Be located in a certified BUILD WV District, as designated by the Secretaries of Commerce, Economic Development, and Tourism
- Generate approved costs in excess of $3,000,000 OR includes at least six residential units or houses
- Create a significant and positive economic impact on the state
- Will directly or indirectly improve opportunity in the area where the project will be located for the successful establishment or expansion of other commercial businesses
- Provide additional employment opportunities in the state
- Please read WV §5B-2L-16 for the entire list of approval considerations
BUILD WV Districts
For the latest information on approved BUILD WV district locations, see the map below. To find out how your project or community can become a BUILD WV district, please reach out to the contact below.