Forest ProductsTax Credit Sourcebook

West Virginia · Inventory · WV-INV-001

Manufacturing Inventory Tax Credit

Publication revised September 24, 2026. Sourcebook page 275.

Credit amount / calculation

Credit based on eligible ad valorem tax paid on manufacturing inventory.

Business fit and eligible activity

Manufacturers can offset state corporate income tax with credit tied to local property tax paid on manufacturing inventory. Eligible inventory property tax paid; not the market value of inventory.

Eligibility and practical use

This is not tied to a new project. It matters because forest-products businesses can carry large seasonal inventories of logs, green lumber, kiln inventory, and finished product. Where the state credit is linked to local inventory tax, the benefit can recur year after year, but taxpayer type and the property classification determine whether it is actually usable.

Illustrative business benefit

Use-of-credit illustration, not an estimated award: assume the agency or completed tax form establishes a $1,000 credit for the qualifying activity described above. If sufficient eligible tax is due, a $1,000 credit available for current use reduces that tax by $1,000. If annual limits allow only $600, that is this year's saving; the other $400 survives only if the carryforward or transfer rules permit. Obtain the actual program calculation before estimating a project benefit.

Timing / first action

Tax-year claim: document eligible manufacturing inventory, the ad valorem property tax paid on it, and the taxpayer or entity requirements for the state credit. Claim only the tax actually eligible under the program.

Official sources

Related programs

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