COVID-19 ECONOMIC RESOURCES

Incentives

Performance-based incentives for companies that locate or grow in Virginia's Growth Alliance

VGA's incentive programs reduce the costs of opening or expanding a business facility, and we work enthusiastically to assist employers who choose to put down roots and grow in the Commonwealth. We view incentives as an investment in Virginia’s economic future and a business opportunity for both the Commonwealth and the company.

VGA Opportunity Zones map

Call Jeff Reed at 434.738.2544 or 434.265.2382 with questions pertaining to incentives.

 

Discretionary Incentives

The Commonwealth of Virginia offers an array of discretionary incentives for competitive projects evaluating a Virginia location, providing financial inducements that make good fiscal sense for all parties. Performance-based incentives target the needs of companies as well as the development plans of localities and the Commonwealth.

Agriculture & Forestry Industries Development Fund (AFID)
Provides grants to localities for businesses that add value to Virginia-grown agriculture and forestry products
Commonwealth’s Development Opportunity Fund (COF)
Provides “deal-closing” grants at the Governor's discretion to secure a company location or expansion in Virginia
Major Eligible Employer Grant Program (MEE)
Provides grants to companies to make investments and provide a significant number of stable jobs through a significant expansion or new operation
Port of Virginia Economic and Infrastructure Development Grant (POV Grant)
Provides grants to companies that construct new maritime-related employment centers or expand existing centers
Virginia Economic Development Incentive Grant (VEDIG)
Provides grants to companies that invest and create new employment opportunities by locating significant headquarters, administrative, or service sector operations in Virginia
Virginia Investment Performance Grant (VIP)
Provides grants to existing Virginia manufacturers or manufacturing-related research and development services that continue capital investment in the Commonwealth

Financial Assistance

A variety of financing options are available to companies and localities through state-level partners. These programs can meet many different project sizes and financing needs.

Virginia Small Business Financing Authority (VSBFA)
Provides small businesses and communities with debt financing resources for business formation and expansion

Infrastructure Assistance

The Virginia Department of Transportation (VDOT) and the Virginia Department of Rail and Public Transportation (DRPT) offer several programs to assist localities in providing adequate infrastructure access for industrial and commercial projects. These programs are designed to assist Virginia localities in attracting companies that will create jobs and generate tax revenues within the locality.

Economic Development Access Program
Provides funds to localities for road improvements needed to create adequate access for new or substantially expanding companies
Rail Industrial Access Program
Provides funds to construct railroad tracks to new or substantially expanded industrial and commercial projects having a positive impact on economic development in Virginia
Transportation Partnership Opportunity Fund (TPOF)
Awards grants, revolving loans, or other financial assistance to an agency or locality for projects related to transportation capacity expansion

Recruitment & Training Incentives

Virginia offers financial assistance and training to companies that seek to attract and retain qualified employees in the Commonwealth.

Virginia Jobs Investment Program (VJIP)
Provides services and funding to companies creating new jobs or implementing technological change to reduce human resource development costs for new companies, expanding companies, and companies retraining their employees
Virginia Talent Accelerator Program
Provides world-class training and recruitment solutions that are fully customized to a company’s unique operations, equipment, standards, and culture. All program services are provided at no cost to qualified new and expanding companies as an incentive for job creation.

Regional & Local Assistance

A number of targeted incentive programs exist in designated regions of the Commonwealth and within individual localities to attract businesses and assist in their growth. These programs can be statutory or discretionary and may offer additional financing options in some areas of Virginia.

Tobacco Region Opportunity Fund (TROF)
Provides performance-based monetary loans to localities in Virginia's tobacco-producing regions (34 counties and six cities in southern and southwestern Virginia)
Virginia Collaborative Economic Development Performance (CED) Grant
Provides grants to localities that have entered into regional collaborative economic development initiatives to induce the location or expansion of companies meeting certain new job and capital investment requirements in the region
Virginia Enterprise Zone – Job Creation Grant
Provides grants to businesses that create high-wage, full-time, permanent positions with health benefits in an Enterprise Zone that are net new jobs for Virginia
Virginia Enterprise Zone – Real Property Investment Grant
Provides grants to investors that undertake rehabilitation, expansion, or new construction projects within the boundaries of an Enterprise Zone

Tax Incentives

Virginia offers stable, low-tax costs for companies, including the benefits of no franchise or net-worth tax, a modest sales tax with a broad range of exemptions, and a 6% corporate income tax rate, which has not changed since 1972. Aiding the stable tax environment in the Commonwealth is a toolbox of credits and exemptions that companies can claim on taxes ranging from the sales and use tax to the corporate income tax.

Barge and Rail Usage Tax Credit
Offers per-unit credit for “international trade facilities” that transport containers using barge or rail, rather than trucks or other motor vehicles on Virginia’s highways
Commercial and Industrial Sales & Use Tax Exemption
Offers sales and use tax exemption for purchases used directly in production or research and development
Data Center Retail Sales & Use Tax Exemption
Offers exemption for qualifying computer equipment or enabling software purchased or leased for use in certain data centers in the Commonwealth that meet minimum investment and job creation requirements
Green Job Creation Tax Credit
Offers annual individual or corporate income tax credit for each new green job meeting minimum hours requirements in taxable years beginning before January 1, 2021
International Trade Facility Tax Credit
Offers income tax credit for capital investment or job creation related to an international trade facility
Major Business Facility Job Tax Credit
Offers $1,000 income tax credit for each new full-time job created over a jobs threshold for companies locating or expanding in Virginia
Major R&D Expenses Tax Credit
Offers individual and corporate income tax credit for incurring more than $5 million of Virginia qualified research and development expenses in taxable years beginning on or after January 1, 2016
New Company Incentive Program
Offers an exemption from corporate income tax, and up to $2,000 per new job, for companies with no employment or property in the state prior to January 1, 2018 and that meet statutory investment and employment requirements.
Port Volume Increase Tax Credit
Offers corporate income tax credit for manufacturing, distribution, agriculture, and mineral and gas companies that increase usage cargo volume at Virginia’s port facilities
Refundable R&D Expenses Tax Credit
Offers individual and corporate income tax credit for taxpayers with qualified research and development expenses in Virginia under $5 million per year