West Virginia Governor Jim Justice (R) signed legislation that eliminates the transaction cap and the annual statewide cap for the State Historic Tax Credit (HTC). H.B. 4568 removes the $10 million transaction cap and $30 million annual statewide cap. The legislation also allows phased rehabilitations for any project completed after July 1, 2022. The bill’s other provisions are effective June 9.
Governor Justice also signed H.B. 4502 to create tax incentives to build middle-income housing through a sales tax exemption for contractors and a tax credit for the property value adjustment for new housing in certified districts for graduate, post-graduate, professional and technical personnel. The legislation is effective June 10 and expires Jan. 1, 2028. The tax credit will be for 60 percent of the approved costs for the development multiplied by the statewide average class III property tax rate of the state for the year in which the property is completed. That amount can be taken annually over ten years. The annual statewide approved costs cap is $40 million and the transaction cap for approved costs is $3 million, unless the proposal includes six or more residential units.
