Purpose and overview
The West Virginia Tourism Development Act was first passed in 2004 to encourage the creation of new destinations and the expansion of existing tourism destination projects in West Virginia. Tourism development projects that apple for the program should create and preserve job opportunities in the state’s tourism industry, improve the local economy, and generate new sources of sales tax revenue.
Approved companies will be able to apply a sales tax credit to their monthly sales tax returns once the new or expansion project is complete and open to the public. The sales tax credit equals 25% of the project’s approved costs/investment. The following scenarios may qualify a company for 35% of the project investment:
- Project is located on or adjacent to an abandoned mine land
- Project is located within 5 miles of state or federal recreation land (i.e. state or national Park)
- Project involves a structure on the National Register of Historic Places (or located within a National Historic District) and is considered to be a contributing resource
The credit may be taken over a ten year period at the rate of 1/10th of the approved cost/investment amount annually. After 10 years, a company may request an additional 15 year period to use any remaining credit. The credit is applied to sales tax collected above and beyond an established based tax (base tax is the average of sales tax collected the 12 months prior to project opening).
The credit may be taken over a ten year period at the rate of 1/10th of the approved cost/investment amount annually. After 10 years, a company may request an additional 15 year period to use any remaining credit. The credit is applied to sales tax collected above and beyond an established based tax (base tax is the average of sales tax collected the 12 months prior to project opening).
Please read WV §5B-2E-5 for the entire list of approval considerations. Approved projects should:
- Involve the investment/approved costs of at least $1,000,000
- Attract at least 25 percent of its visitors from out of state
- Be open to the public at least 100 days per year
- Provide for additional employment opportunities in West Virginia’s tourism industry
- Create a significant and positive impact on the state
- Projects involving lodging must meet one of the following to be eligible:
- Lodging represents less than 50% of the project’s approved costs
- Be located on recreational property owned or leased by the state or federal government
- Involves the restoration or rehabilitation of a building on the National Register of Historic Places, or be located in a historic district
The West Virginia Department of Economic Development (WVDED) oversees the program and reviews all applications in collaboration with the West Virginia Department of Tourism. A non-refundable application fee of $10,000 is required to apply. Applications must be approved before a project is complete and open to the public.
If you are interested in learning more or discovering if your project may be eligible, please reach out to us at the contact information below. We look forward to working with you.
Contact:
Meghan Smith
West Virginia Department of Economic Development
304-993-3564
meghan.e.smith@wv.gov
