Port of Virginia Economic and Infrastructure Development Grant (POV Grant)

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The Port of Virginia Economic and Infrastructure Development Grant (POV Grant) is designed to incentivize companies to locate new maritime-related employment centers or expand existing centers to encourage growth of The Port of Virginia. POV Grants are administered by the Virginia Port Authority.

For additional program information, refer to The Port of Virginia.

Contacts

Russell Held

Virginia Port Authority

757.683.2115

rheld@portofvirginia.com

Eligibility

Applicants must meet the definition of a qualified company, which is defined as a business entity that meets the following four criteria:

Locates or expands a facility within the Commonwealth.
Creates at least 25 new, permanent full-time positions at a facility within Virginia from commencement of the project through the first full year of operation or during the year when the expansion occurs.
Is involved in maritime commerce or exports or imports manufactured goods through The Port of Virginia.
Is engaged in one or more of the following: distribution, freight forwarding, freight handling, goods processing, manufacturing, warehousing, crossdocking, transloading, or wholesaling of goods exported and imported through The Port of Virginia; shipbuilding and ship repair; dredging; marine construction; or offshore energy exploration and extraction.

A qualified company that has received a POV Grant may be eligible for a second POV Grant if it meets all of the following three criteria:

Locates or expands an additional facility in a separate location, as determined by the Virginia Port Authority, within the Commonwealth.
Creates at least 300 new, permanent full-time positions at the additional facility over and above those agreed upon in the company's original MOU with the Virginia Port Authority.
Increases cargo volumes through The Port of Virginia by at least 5% from the additional facility, not including any volume increase resulting from the original grant.

An otherwise qualified company that claims employees for the Major Business Facility Job Tax Credit or International Trade Facility Tax Credit may not receive a POV Grant for those previously claimed jobs.

Process

A qualified company must apply to the Executive Director of the Virginia Port Authority (VPA) by March 31 in the year immediately following the first full year of operations in which the qualified company located or expanded a facility within the Commonwealth.

The Port of Virginia tracks and maintains contact with companies that are expanding or locating in Virginia, have created at least 25 new full-time positions, and are using the Port. As soon as the qualified companies have determined eligibility, Port officials will work with the company to guide them through the application process:

A qualified company registers via the online Grant Portal by creating a user name and password.
The company provides necessary documentation through the online grant portal, including:
- A company letter providing a description of the facility in the Commonwealth; jobs created from commencement through the first full year of operation or the first full year after an expansion; the capital investment made by the qualified company at its facility in the Commonwealth from commencement through the first full year of operation or the first full year after an expansion; an affirmation that the establishment or expansion of the facility has not resulted in a closing, loss of jobs, consolidation, or change to any other operations in Virginia during the prior 12 months, nor will do so for the next 12 months; an affirmation that neither the qualified company, nor any related party or trade or business under common control has earned a Major Business Facility Job Tax Credit or International Trade Facility Tax Credit for the same new jobs included within the POV Grant application; and an affirmation that the qualified company was not a party to a reorganization, as defined in Section 368(b) of the Internal Revenue Code of 1986, as amended, if any corporation involved in such reorganization received a POV Grant for the same facility or operations.
- A locality letter containing a summary statement presenting the importance of the facility to the community, the location of the project, including industrial park (if applicable), square footage, or company address; a statement regarding other Virginia and local incentives the qualified company will receive for the project; and, if the qualified company has received Virginia and local incentives for other past projects, a statement that the qualified company met its performance obligations.
- Verification of jobs created.
- Cargo verification through The Port of Virginia’s website or a statement of impact.
The Port of Virginia reviews the submitted documentation after March 31.
Once the documentation review has been completed, the qualified company enters into a Memorandum of Understanding with the VPA. Once the Memorandum of Understanding is executed, the grant payments will be released.

Resources

FAQ

How are awards calculated?

The amount of the grant is calculated by the following formula, subject to a maximum amount of $500,000 per year:

25–49 new jobs: $1,000 per job
50–74 new jobs: $1,500 per job
75–99 new jobs: $2,000 per job
100+ new jobs: $3,000 per job

The maximum amount of POV Grant allowable per qualified company in any given fiscal year is $500,000, subject to the availability of funds and appropriations.

How does a company apply?

Applicants should review the full Grant Program Guidelines to make sure the company meets the eligibility requirements and review the Memorandum of Understanding (MOU) that will be required should the company be awarded a grant. Grants may be applied for by requesting a Grant Portal, (the single resource for completing the grant application and reporting requirements.

What is a new job?

A new job is a job of indefinite duration, created by the company as a result of operations within the Commonwealth. It requires a minimum of 35 hours of a qualified full-time employee’s time per week for the entire normal year of the company’s operations. A normal year consists of at least 48 weeks, or a position of indefinite duration that requires a minimum of 35 hours of a qualified full-time employee’s time per week for the portion of the taxable year in which the qualified full-time employee was initially hired for the company’s facility within Virginia.

What positions do not qualify as new jobs?

Seasonal or temporary positions, or jobs created when a position is shifted from an existing location in the Commonwealth to the company’s new facility, do not count as new, permanent full-time positions.

Building and grounds maintenance at the company’s location within the Commonwealth of Virginia do not count as new jobs.

How long must the jobs be maintained at the facility?

The new jobs created in the POV Grant must be maintained without interruption during the three years immediately following receipt of the full amount or first portion of the POV Grant.

What happens if the company does not maintain the jobs at the facility during the three-year maintenance period?

If, for any of the three years immediately following receipt of the POV Grant, the company does not maintain the new jobs, the company will be required to repay all or a portion of the POV Grant based upon a repayment formula outlined in the MOU.

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