Incentives for Investing in Martinsburg:
There are countless reasons to invest in Martinsburg: our economic fundamentals, value, proximity to major markets, historic downtown, tight-knit yet welcoming community, incredible architecture; focus on workforce development and opportunity-creation….
But if that’s not enough, the City of Martinsburg, State of West Virginia, and federal government provide several valuable incentives for locating and investing in the Martinsburg community:
No state taxes on personal or corporate income in most of the city. As part of the state’s opportunity zone program, the majority of the city falls within designated census tracts in which business income and personal income derived from those businesses is exempt from taxes. There are no hoops to jump through. Invest in a Martinsburg opportunity zone and write off the income derived from that opportunity zone business on Schedule M, Line 45 of your WV state tax form.
Preferred capital gains treatment through the federal version of the opportunity zone program. The federal opportunity zone program provides capital gains tax incentives for investments in opportunity zones, with greater benefit the longer the investment is held.
Credit toward already-low Business & Occupation tax rates for new businesses and businesses investing in downtown. Recognizing the challenges of starting a new venture: we still want you to start it here in Martinsburg. So the City provides a phased credit of 75% in Year 1, 50% in Year 2, and 25% in Year 3. You won’t pay full B&O tax rates until your fourth year in business in Martinsburg. And if you’re located downtown, you’ll get an additional 10% off each and every year.
Real estate tax forgiveness of 40% of market value. Real property will only be taxed at 60% of assessed value. This benefit is enshrined in the West Virginia Constitution, and has the effect of a 40% real property tax break for being a West Virginia real property owner, even when the tax rates are comparable to other jurisdictions.
Historic tax credits. Property owners who undertake a substantial renovation of a historic building for income-producing use can qualify for a total of 45% is tax credits—20% federal and 25% state—offsetting the costs of the work. These federal and state programs are operated by the National Park Service and the WV State Historic Preservation Office, respectively. A separate program by the State Historic Preservation Office provides a 20% credit for rehabilitation of historic residential properties.
HUB Zone status. Much of Martinsburg falls within designated Small Business Administration Hub Zones. Small businesses in based in these geographic zones gain contracting and procurement preferences to work with the federal government, so long as they meet certain eligibility requirements.
New Market Tax Credits. The New Market Tax Credit (NMTC) program uses tax credits to spur private investment in eligible communities working toward revitalization. Most projects in Martinsburg are geographically qualified for the use of NMTC funds.