HB 4006: Creating the West Virginia Aerospace and Advanced Manufacturing Growth Act - West Virginia

hb4006 hfa riley and hornby 2-27 _1 adopted.htm → hb4006 s fin am _1 3-10 adopted.htm · 8 edits

MODERATE

The bill was completely rewritten to replace a narrow definition of eligible aviation training schools with a comprehensive new program for aerospace job development grants. The original text only defined who could receive training funds, while the new text establishes a multi-million dollar grant system to attract major aerospace companies to West Virginia, creating high-wage jobs and funding workforce training. This shift moves the legislation from a passive definition of training partners to an active economic development tool with strict financial thresholds and reporting requirements.

Scope change

The bill's scope expanded from a simple definition of eligible aviation training institutions to a full-scale economic development act creating two new funds: one for direct grants to aerospace businesses and another for workforce development and infrastructure improvements.

SCOPE

Created a new 'West Virginia Aerospace Growth Act' to establish a broad program for attracting aerospace companies, replacing the previous narrow focus on training institutions.

FISCAL

Established a new grant program offering up to 90% of 'new employee generated funding' (calculated from tax withholdings) to businesses creating high-wage jobs, with specific caps based on project size and location tier.

ELIGIBILITY

Defined specific project tiers (High-Yield, Transformative, Expansion) requiring minimum investments of $500 million to $1 billion and job creation of 600 to 1,200 positions to qualify for grants.

REQUIREMENT

Mandated that businesses apply for grants by paying application fees ranging from $1,000 to $10,000 depending on the county's economic distress level.

Required businesses to maintain employment levels for 150% of the grant term and face recapture of funds if they fail to meet these obligations.

ENFORCEMENT

Added strict anti-manipulation clauses allowing the state to immediately terminate agreements and recapture all grant funds if a business is found to have falsified employment or payroll data.

TIMELINE

Set a start date of June 30, 2027, for the calculation of new employee generated funding, delaying the program's financial operations by several years.

DEFINITION

Replaced the specific list of three universities with a broad definition of 'eligible institution' to include any state institution of higher education, career/technical centers, or community colleges.

Committee Substitute for the Committee Substitute → hb4006 hfa riley and hornby 2-27 _1 adopted.htm · 3 edits

MINOR

The amendment modifies the definition of 'eligible institutions' for aviation maintenance training grants, expanding eligibility from specific named universities to include all state institutions of higher education, while removing explicit references to Fairmont State University, Marshall University, and West Virginia University.

Scope change

The bill's scope expanded from a limited list of specific universities to include any state institution of higher education for aviation maintenance training grants.

ELIGIBILITY

Changed eligibility criteria for aviation maintenance training grants from a fixed list of three specific universities to include any state institution of higher education, broadening the pool of qualifying institutions.

Added three new categories for eligible institutions: (1) public community and technical colleges, (2) career/technical centers approved by the council, and (3) any state institution of higher education.

DEFINITION

Removed explicit naming of Fairmont State University, Marshall University, and West Virginia University from the definition of eligible institutions.

Committee Substitute → Committee Substitute for the Committee Substitute · 7 edits

MODERATE

This bill revision narrows the program's focus from general aerospace and advanced manufacturing to specifically target the aerospace industry, while simplifying grant structures and creating new dedicated funds for utility and workforce development. The changes streamline application fees, adjust grant percentages, and update definitions to better align with the aerospace sector's specific needs.

Scope change

The bill's scope was narrowed from a broad aerospace and advanced manufacturing program to a focused aerospace industry program, removing general manufacturing incentives and creating specific aviation/aerospace designations.

SCOPE

Changed the program title from 'West Virginia Aerospace and Advanced Manufacturing Growth Act' to 'West Virginia Aerospace Growth Act', removing advanced manufacturing focus.

ELIGIBILITY

Simplified project definitions by combining transitional and expansion projects into a single 'Expansion/Transitional project' category with $250 million investment and 300 job requirements.

FISCAL

Replaced fixed grant percentage limits with a cap of 85% for Tier 1 areas and 75% for other areas, and created new Aviation and Aerospace Utility Development Fund and Workforce Development Fund.

REQUIREMENT

Reduced application fees from tiered amounts ($10,000/$5,000/$1,000) to a single $10,000 fee only for Tier 3 development areas.

Changed grant reporting requirements from March 1 to align with annual grant year continuation conditions.

DEFINITION

Added specific definitions for 'DME' (distance measuring equipment) and 'FAA' (federal aviation administration) to clarify training program requirements.

TIMELINE

Updated rulemaking authority section to reference §29A-3A-1 et seq. instead of §29A-3-1 et seq.

Engrossed Committee Substitute for the Committee Substitute → Committee Substitute · 7 edits

MODERATE

The bill was renumbered and reorganized to expand its scope from an aerospace-specific growth act to a broader economic development and job creation program. It now includes detailed provisions for a Job Development Investment Grant Program with specific funding tiers based on project size and location, alongside updated tax incentives and workforce training initiatives for both aerospace and general manufacturing sectors.

Scope change

The bill's scope expanded from exclusively aerospace industry development to include broader economic development, job creation grants, and workforce training programs applicable to manufacturing and aerospace industries.

SCOPE

Title and article names changed to reflect broader focus on 'Aerospace and Advanced Manufacturing Growth' rather than just 'Aerospace Growth'.

FISCAL

New Job Development Investment Grant Program established with specific funding limits ($12-15 million annually) and tiered application fees based on project location and type.

ELIGIBILITY

New definitions for project types including 'high-yield,' 'transitional,' 'expansion,' and 'transformative' projects with specific investment and job creation thresholds.

REQUIREMENT

Enhanced reporting requirements including annual payroll reports, tax returns, and detailed economic impact data submissions.

ENFORCEMENT

New provisions for grant recapture and termination if businesses manipulate employee data or fail to maintain employment levels.

DEFINITION

Updated industry classifications to include broader manufacturing sectors and added specific definitions for workforce training programs.

TIMELINE

New effective date provisions and reporting requirements beginning January 1, 2027 for workforce training programs.

Introduced Version → Engrossed Committee Substitute for the Committee Substitute · 8 edits · Feb 27, 2026

MODERATE

The bill was amended to streamline the aerospace industry legislation by removing redundant articles and consolidating provisions. The changes clarify the program's structure, update tax incentive references, and establish new funds for workforce development and utility infrastructure. These modifications aim to improve clarity and ensure the program effectively supports aerospace job creation and economic growth in West Virginia.

Scope change

The bill's scope was narrowed by removing references to 'Advanced Manufacturing' from the title and article designations, focusing more specifically on aerospace industry development. The scope of the grant program was expanded to include related business members in applications.

SCOPE

Removed 'Advanced Manufacturing' from the bill title and article designations, narrowing focus to aerospace industry specifically.

DEFINITION

Updated tax incentive references to match current code sections, removing outdated or incorrect citations.

FISCAL

Created new Aviation and Aerospace Utility Development Fund and Workforce Development Fund to support infrastructure and training initiatives.

ELIGIBILITY

Added provisions allowing related business members to apply for grants collectively and share grant awards.

REQUIREMENT

Established application fees based on development tier ($10,000 for Tier 3, $5,000 for Tier 2, $1,000 for Tier 1) and mandatory reporting requirements.

Added requirement that businesses must have no overdue tax debts before receiving grant disbursements.

ENFORCEMENT

Strengthened enforcement provisions with specific penalties for grant manipulation, including immediate termination and fund recapture.

TIMELINE

Added specific reporting deadlines (March 1 annually) and grant disbursement timelines (within 90 days of certification).

Creating the West Virginia Aerospace and Advanced Manufacturing Growth Act

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