WHEELING — A federal program to provide additional tax incentives at specific developable commercial, industrial and residential sites now includes areas of the Northern Panhandle.
U.S. Sen. Shelley Moore Capito, R-W.Va., and West Virginia Gov. Jim Justice on Monday announced the U.S. Department of Treasury’s certified “Opportunity Zones” in West Virginia.
New investments in Opportunity Zones can receive preferential tax treatment. Investors can defer tax on any prior gains until no later than Dec. 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund, an investment vehicle organized to make investments in Qualified Opportunity Zones. In addition, if the investor holds the investment in the Opportunity Fund for at least 10 years, the investor would be eligible for an increase in its basis equal to the fair market value of the investment on the date that it is sold.
Five areas were certified throughout the region in Weirton and Wheeling, and in Wetzel, Tyler and Marshall counties. Weirton’s zone will be located in the downtown corridor, and Tyler County’s will be situated in developable sites near Paden City Industrial Park near the Ohio River. The City of Wheeling has a zone in the industrial, commercial and residential areas near W.Va. 2, Interstates 70 and 470, and the Ohio River. Marshall County’s zone is located in the contiguous tract near shale gas, oil reserves and industrial companies. Wetzel County’s area is listed as “in the center of the shale gas exploration and production site.”
These Opportunity Zones exist as part of the Tax Cuts and Job Act, a federal legislation that provides tax relief and benefits to families and workers in West Virginia and across the nation.
“These Opportunity Zones are yet another way tax reform is going to help West Virginians create jobs, drive economic growth and attract investment,” Capito said, “I was proud to co-sponsor the provision in the new tax law.”
The zones will retain designation for 10 years, and are designed to encourage private investment through the new federal tax incentive.
“These Opportunity Zones will help to revitalize many areas across West Virginia and spur private investments that will create economic growth,” Justice said. “Through these investments, West Virginia hopes to see economic development and job creation in areas where it is needed the most.”