BUILD WV Act to Provide Tax Exemptions for Residential Building Projects
April 28, 2022
By: Danielle M. Waltz and Isaiah Robinson
On March 30, 2022, West Virginia Governor Jim Justice signed the BUILD WV Act into law. The BUILD WV Act, or House Bill 4502, creates tax exemptions for developers if they build residential areas in certain regions of West Virginia. These tax exemptions include a potential municipality business tax exemption, a property value adjustment refundable tax credit for ten years, and a sales tax exemption for building materials. These exemptions will apply in up to twelve certified districts in West Virginia. The districts will be designated by one of the following officials: (1) the Secretary of the Department of Economic Development; (2) the Secretary of the Department of Tourism; or (3) the Secretary of the Department of Commerce. Factors such as the housing and employment needs of a district, the assistance the district will provide in the economic development, and the economic outlook for the State will go into deciding whether a district will be designated for the tax exemption. For a project to qualify, the project must cost at least $3 million with at least six residential units or houses built.
Governor James C. Justice highlighted the bill during his State of the State address, noting the net migration increase in people moving to West Virginia within the past year. Passing with broad bipartisan support in both chambers of the legislature, the BUILD WV Act will incentivize contractors to build residential properties in areas with growing tourism/economic development needs. In return, the goal is to have homes already built so the employees of incoming businesses will have a place to live and raise their families. The BUILD WV act specifically calls for, “... reasonably priced residential housing for graduate, post-graduate and professional job holders, technical workers, and entrepreneurs for targeted businesses in key geographical regions of this state...” If you need any assistance with this or have more questions concerning the BUILD WV Act, please reach out to a member of our economic development or construction team