West Virginia's Commerce Department used its Daily304 newsletter on Sept. 29 to remind developers about BUILD WV, the state's tax incentive for new housing. For contractors, the more interesting story is in the program's own numbers. Demand is strong, the yearly cap is nearly maxed out, and the program has an expiration date.
What the incentive offers
The BUILD WV Act, passed in 2022, is run by the West Virginia Division of Economic Development. According to the division's program page, approved projects get three things.
The first is a sales tax exemption that applies directly to the trades. Purchases of building materials, tangible personal property and services "by a construction contractor or subcontractor directly used in the construction of a certified BUILD WV project" are exempt from the consumer sales and service tax.
The second is a Property Value Adjustment Credit against personal or corporate income tax, taken over 10 years starting in the tax year construction is completed. Under state code, the total credit is 60 percent of certified approved costs, multiplied by the statewide average Class III property tax rate, multiplied by 10. It's applied one-tenth per year. If a year's credit is larger than the developer's income tax bill, the excess can be refunded, up to $100,000 per project for that tax year. The state's page and newsletter shorten this to "up to $100,000 per project," but that cap applies only to the refundable portion. The report shows a completed 46-unit Wheeling project approved for $1,230,945.14 in total credits.
The third is a possible business and occupation tax exemption, which individual cities can grant by ordinance.
To qualify, a project must be in a certified BUILD WV district and generate approved costs over $3 million or include at least six residential units or houses. Projects must also show a positive economic impact, help other businesses and add jobs. A $5,000 nonrefundable application fee applies, and projects must apply and be approved before construction is finished.
The numbers behind the pitch
The division's annual report to the Legislature, dated July 1, 2026, shows how much the program is being used.
In the fiscal year that ended June 30, 2026, the division approved 17 BUILD WV projects, representing 773 housing units and an estimated $148,188,587 in approved costs. With a cap of $150 million in project cost approvals each fiscal year, the report said, "it is reasonable to say the program is operating at its statutory cap."
Five projects were reported completed during the year, representing 80 housing units and 142 lots prepared for residential development. Since the program began, 47 projects have been approved, and they're expected to yield 1,903 housing units across 12 BUILD WV districts in 18 counties.
As of June 30, there were 20 certified districts, including a new one based in Summersville. Districts may extend up to 20 miles from the approved location. The report says the program serves workforce buyers and renters such as graduate students, professionals and technical workers, filling a gap that low-income, senior and disability housing programs don't cover.
The report's project table shows the range. Approved projects run from six-unit builds in Mercer County to a 304-unit project in Hurricane and a 288-unit project in Fairplain. Many of the approvals cluster around Morgantown, Bridgeport, Putnam County and Wheeling.
Then there's the sunset. Under state code, the program's provisions expire Jan. 1, 2028. The division can approve applications until that date, and exemptions and credits authorized before then remain valid.
Why it matters for Contractors
If you build or supply housing in a BUILD WV district, this program changes your numbers. The sales tax exemption applies directly to materials and services bought by contractors and subcontractors on certified projects. Firms working on these jobs need to know which project is certified and handle exemption paperwork correctly, or they risk paying tax they didn't have to.
For developers and the builders who work with them, two dates matter. Each fiscal year's $150 million cap was nearly reached in the last one, so timing within a fiscal year can matter. And with the program set to expire Jan. 1, 2028, unless lawmakers extend it, the window for new projects is closing. Builders with six-unit or larger projects in a certified district should talk with the Division of Economic Development at 304-558-2234 before breaking ground, not after.