Only FEDERAL Credits Available

West Virginia R&D Tax Credits

West Virginia does not offer a standalone state Research & Development (R&D) Tax Credit in 2025. The state's Strategic Research and Development Tax Credit was repealed in 2014. Businesses innovating in West Virginia can pursue the federal R&D credit under IRC §41 for qualified activities and explore alternative state economic development incentives, such as job creation credits and manufacturing investments.

No State

R&D Credit

Federal

Credits Available

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Key Highlights

West Virginia's Strategic R&D credit was repealed in 2014 and remains unavailable in 2025
Leverage the federal R&D tax credit under IRC §41 for qualified research activities conducted in the state
Economic Opportunity Tax Credit: For qualifying projects that create the required number of new jobs, this credit is generally taken over 10 years (10 percent of the total credit per year) and can offset up to 80 percent of corporate net income tax and personal income tax on flow through income attributable to the qualified investment. If the new jobs pay above the statewide average wage, the offset can go up to 100 percent.
Manufacturing Investment Tax Credit: A credit equal to 5 percent of qualified investment in eligible manufacturing property, applied over 10 years, and usable against up to 60 percent of West Virginia corporation net income tax liability.
Corporate Headquarters Credit: For relocating firms creating at least 15 new jobs, this can offset up to 100 percent of business and occupation tax, corporate net income tax, and personal income tax on certain pass-through income, for up to 13 years.
Research and Development Sales Tax Exemption: Purchases of tangible personal property and services directly used in research and development are exempt from West Virginia consumer sales tax.

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Key Highlights

Eligible Entities

C Corporation May claim both the regular and basic research credit
S Corporation Limited entity-level use; can pass credits to shareholders
Partnerships / LLCs Credits pass through to owners via Schedule K-1

Qualified Research Expenses (QREs)

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Frequent Asked Questions

West Virginia does not offer a state R&D credit, but businesses can claim federal R&D credits for research conducted in the state. Strike Tax helps maximize federal savings.

Eligible activities include developing manufacturing processes or software solutions with technical uncertainty, meeting IRS criteria. Strike Tax confirms eligibility.

Savings can reach 20% of QREs above a base amount. Use Strike Tax’s R&D Credit Calculator for estimates.

Yes, startups with less than $5 million in gross receipts (and no receipts more than 5 years prior) can elect to offset up to $500,000 of the employer portion of Social Security payroll taxes per year, subject to IRS requirements. Strike Tax supports startup claims.

Document QREs with project plans, time logs, and expense records. Strike Tax ensures compliance with IRS standards.

File IRS Form 6765 with your federal tax return, meeting IRS guidelines. Strike Tax streamlines the process.

Manufacturing, energy, and tech industries often qualify due to innovative research. Strike Tax assesses eligibility.

Strike Tax maximizes federal credits, ensures audit-ready documentation, and provides expert support for WV businesses.

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