We’re assessing local, state, and federal funding sources that make West Virginia an attractive candidate for AAM investment.
You know what they say: “Money makes the world go ‘round.”
For that reason, securing dedicated funding is essential if West Virginia is to propel itself to the forefront of Advanced Air Mobility (AAM). This funding, available from local, state, and federal sources, serves as the lifeblood for catalyzing the growth of AAM initiatives within the state.
This article evaluates several of the state’s top funding enablers based on the Deloitte AAM study commissioned by Vertx Partners. Later on, we’ll discuss the next steps for further bolstering West Virginia’s funding ecosystem.
55 Federally-Designated Opportunity Zones & 18 HUBZones
The federal government has designated certain areas in West Virginia as Opportunity Zones and HUBZones (Historically Underutilized Business Zones), offering lucrative tax incentives for investments in these regions. Additionally, HUBZones receive a 10% price evaluation preference when bidding on federal contracts, making them more competitive.
Leveraging these designations, AAM companies can accelerate their research and operational efforts while stimulating job creation within economically distressed areas.
Appalachian Regional Funding via ARC
West Virginia further benefits from regional funding mechanisms like the Appalachian Regional Commission (ARC), which channels congressionally appropriated funds into economic development endeavors.
Through ARC’s grants and initiatives, West Virginia has seen substantial investments, resulting in job creation and community development. For example, in 2022, the ARC and the West Virginia Development Office supported 61 projects in West Virginia with an ARC investment of $42.9 million, resulting in the creation/retainment of over 2,550 jobs, training 7,590 students and workers, and benefitting 1.8 million residents in the state.
Notably, the ARC has previously supported AAM initiatives (like awarding Ohio University a grant to research the benefits of AAM in the region), highlighting the potential for future collaboration and funding opportunities.
State Tax Incentives & Financial Assistance
West Virginia offers an array of state-level tax incentives and financial assistance programs tailored to foster economic growth and innovation. These include tax credits for high-technology manufacturers (eligible businesses qualify for a 100% tax credit against state taxes) and aircraft valuation benefits, significantly aiding AAM companies looking to establish a presence in the state.
The Future of AAM Incentives in West Virginia
In addition to governmental support, incentives tailored specifically for the AAM industry play a pivotal role in driving innovation and investment. These incentives provide the necessary financial backing and motivation for companies to invest in AAM technologies, ultimately spurring growth and development within the sector.
The importance of AAM-specific incentives is evident in Joby Aviation’s announcement in 2023 to establish its first scaled manufacturing facility in Dayton, Ohio, facilitated by up to $325 million in state and local incentives. Joby Aviation, a California-based AAM aircraft manufacturer, plans to invest up to $500 million and create up to 2,000 jobs with their Ohio facility.
While West Virginia boasts a promising landscape of funding enablers, there remains a need for dedicated state funding streams to bolster AAM initiatives further. Leveraging existing funding mechanisms and fostering collaboration between public and private sectors ensures that West Virginia positions itself as a leader in AAM development.
Exploring Further
For a deeper dive into the funding landscape and strategies for AAM development in West Virginia, Vertx Partners encourages readers to explore Deloitte’s comprehensive AAM study. This study provides detailed insights and analysis, offering a roadmap for stakeholders navigating the evolving AAM landscape in the Mountain State.
Interested in staying updated on the latest AAM news? Reach out to Vertx Partners today.