The House Committee on Small Business, Entrepreneurship, and Economic Development convened at 9 a.m. on Jan 31 in 215-E to originate a bill that would give tax incentives to state business owners who operate within the state’s opportunity zones.
The bill, which was sponsored by all delegates in the committee this morning, would allow West Virginia entrepreneurs to receive a state tax credit for opening a new business within an opportunity zone. The tax incentive would be geared towards people who don’t yet have an existing business in an opportunity zone, but would like to put their money within one.
There are currently 55 opportunity zones throughout the state. These were identified by Governor Jim Justice last year as areas of West Virginia that are economically underdeveloped, and need economic revitalization.
The originating bill is modeled after a federal tax credit that these entrepreneurs may also receive for starting a business in an opportunity zone. These entrepreneurs are currently eligible for a federal tax incentive designed to encourage private investors to make capital investments in those areas. This bill provides for the addition of a state tax incentive, as well.
“The intent of this tax credit is to give an extra jump start to these areas,” said Minority Chairman Doug Skaff (D-Kanawha). “These places need the energy, and this bill will give them that.”
The legislation was approved by the committee to be advanced to the House Floor with recommendations that it pass, but it first go to House Finance Committee for some technical cleanups.
