West Virginia Economic Opportunity Tax Credit
West Virginia Department of Economic Development
$3,000 per qualifying job/year
$3,000/year per qualifying WV job for small businesses
West Virginia's Economic Opportunity Tax Credit rewards businesses that create new jobs in qualifying industries. Small businesses creating fewer than 10 new jobs earning $37,950+ annually with health insurance benefits receive a $3,000 tax credit per qualifying job per year for 5 years. Larger businesses creating 10+ qualifying jobs can offset up to 80% of corporate net income tax (100% if median wage exceeds state average). Qualifying sectors include manufacturing, information processing, warehousing, distribution, R&D, and tourism.
- Funding type
- Tax Credit
- Level
- State
- Amount range
- $3,000
- Realistic amount
- A small WV manufacturer adding 5 qualifying jobs at $40,000/year with health insurance earns $15,000/year for 5 years ($…
- Deadline
- Rolling — contact WV Department of Economic Development to initiate. Credit claimed on WV corporate net income tax or personal income tax return.
- Status
- active
- States
- WV
- Payment model
- tax offset
Who qualifies
- Business must be in a qualifying sector: manufacturing (NAICS 31-33), information processing, warehousing, distribution, R&D, or tourism
- Small business path (under 10 new jobs): positions must pay at least $37,950 annually (adjusted annually) with employer-sponsored health insurance
- Larger business path (10+ new jobs): same wage and health insurance requirements apply
- Jobs must be newly created — not replacement hires for departed employees
- Qualifying jobs must be filled by West Virginia residents for at least 48 weeks of the year (for the 100% credit tier)
- Business must operate in West Virginia and pay WV corporate net income or personal income tax
Hard requirements
- Location restriction: West Virginia — qualifying jobs must be held by WV residents
What it covers
Eligible expenses
- Not expense-based — credit is calculated per qualifying new job created and maintained
- For the small business path: each qualifying job pays $37,950+/year with health insurance and earns a $3,000 annual credit
Ineligible expenses
- Replacement positions (departing employee backfill)
- Part-time positions
- Jobs in excluded sectors (retail, most consumer services)
- Jobs paying below $37,950 annually or without employer health insurance
How to apply
-
1
Confirm qualifying sector and job criteria
Contact the WV Department of Economic Development to verify your NAICS code is in a qualifying sector and that planned new positions will meet the wage ($37,950+), health insurance, and WV residency requirements.
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2
Create and document new qualifying jobs
Hire new WV employees in qualifying positions. Document hire dates, wages, benefits (especially health insurance provision), and West Virginia residency. For small business path (<10 jobs), maintain records for each of the 5 years.
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3
Calculate credit amount
Small businesses (<10 qualifying jobs): multiply qualifying new jobs by $3,000. Larger businesses (10+ jobs): calculate as percentage of WV corporate net income tax, up to 80% (or 100% if median compensation exceeds state average). Carry forward any unused credit.
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4
Claim on WV tax return
File the credit on the West Virginia Corporate Net Income Tax return or WV Personal Income Tax return for pass-through entities. Attach documentation of qualifying jobs, wages, and benefits.
The small business path (under 10 jobs) requires just $37,950/job and health insurance — a low bar. Even micro-manufacturers adding 2–3 positions qualify for the $3,000/job/year credit. Confirm the qualifying sector list with WV Econ Dev before committing to hiring.
Deadline & timing
No formal annual application window. Businesses create qualifying jobs, document them, and claim the credit on their West Virginia tax returns. Contact the WV Department of Economic Development for confirmation of qualifying sector and job criteria before hiring to ensure compliance.
Programs that stack well
- West Virginia SBIR/STTR Matching Grant Program
- Federal Work Opportunity Tax Credit
Related programs
Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.