West Virginia Opportunity Zones Can Benefit New Businesses

October 26, 2020

Opportunity Zone incentives can be a vital step forward for community revitalization. Created as part of the federal Tax Cuts and Jobs Act of 2017, Opportunity Zones are designed to promote economic development, support recovery, and improve the outcomes in distressed communities. Investors can receive tax incentives for investing in rural and low-income areas.  Businesses can benefit from the real estate or business investments within these opportunity zones while also enjoying tax deferring benefits on any capital gains received from these investments.

In addition, any new business created in one of the 55 opportunity zones in West Virginia is also exempt from corporate and personal income tax for 10 years. This West Virginia opportunity zone incentive is separate from the federal opportunity zone incentive and does not require an opportunity fund to be created. Instead, all that is required is a new business that is determined to be a "Qualified Opportunity Zone Business" as defined in Section §1400Z-2 of the Internal Revenue Code (basically an LLC or partnership)

 West Virginia Opportunity Zone Incentive

• Must be a newly registered business in West Virginia, registered after January 1, 2019 and before January 1, 2024
• Cannot merely be a reorganization of a business that existed prior to January 1, 2019; required to obtain a new business registration certificate
• Must be considered a "Qualified Opportunity Zone Business" as defined in Section §1400Z-2 of the Internal Revenue Code (basically an LLC or partnership)
• Must be in one of the 55 qualified opportunity zones in West Virginia, of which six are located in Jefferson County
• Incentive: Exempt from corporate and personal income tax for 10 years
• Can be used with or without the Federal Opportunity Fund incentive
• Business must be created before January 1, 2024

West Virginia Opportunity Zone Information

Opportunity Zones in Jefferson County