West Virginia Governor Signs Bill Creating Middle-Income Housing Tax Exemption, Tax Credit
Legislation to create tax incentives to build middle-income housing was signed into law by West Virginia Gov. Jim Justice. H.B. 4502 includes a sales tax exemption for contractors and a tax credit for the property value adjustment for new housing in certified districts for graduate, post-graduate, professional and technical personnel. The legislation is effective June 10 and expires Jan. 1, 2028. The tax credit will be for 60% of the approved costs for the development multiplied by the statewide average class III property tax rate of the state for the year in which the property is completed. That amount can be taken annually over 10 years. The annual statewide approved costs cap is $40 million and the transaction cap for approved costs is $3 million, unless the proposal includes six or more residential units.