BUILD WV Act – 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.

BUILD WV Districts

For the latest information on approved BUILD WV district locations, see the map here.

If you are interested in learning more or discovering if your project may be eligible, or located within a BUILD WV District, please reach out to Meghan Smith at the WV Department of Economic Development. (304) 993-3564

 

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