VA Incentives | Finance, Loans, IRB, Workforce Development

A comprehensive list of Virginia financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.


https://businessfacilities.com/2016/03/va-incentives-and-workforce-development-guide/
A comprehensive list of Virginia financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.
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Virginia Incentives and Workforce Development Guide

VA Incentives | Finance, Loans, IRB, Workforce Development

For a list of Virginia economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.

 

DISCRETIONARY GRANTS

Commonwealth’s Opportunity Fund (COF): Discretionary funds available to the Governor to secure a business location or expansion project for Virginia. Grants are awarded to localities on a local matching basis with the expectation that the grant will result in a favorable location decision for the Commonwealth. The Commonwealth’s Opportunity Fund is a vital, proven deal-closing incentive that Virginia and its communities have successfully used for over two decades.

Virginia Economic Development Incentive Grant (VEDIG): A discretionary investment performance grant program designed to assist and encourage companies to invest and create new employment opportunities by locating significant headquarters, administrative or service sector operations in Virginia. Eligible projects must meet minimum requirements for capital investment and job creation.

Virginia Investment Partnership Grant (VIP): A discretionary performance incentive designed to encourage continued capital investment by Virginia companies, resulting in added capacity, modernization, increased productivity, or the creation, development and utilization of advanced technology. The program targets manufacturers or research and development services supporting manufacturing that have operated in Virginia for at least three years

Major Eligible Employer Grant (MEE): A discretionary performance incentive designed to encourage significant capital investment and job creation, by Virginia manufacturers and other basic employers, to grow in Virginia rather than another state or country.

Governor’s Agriculture & Forestry Industries Development Fund (AFID): The Governor’s Agriculture and Forestry Industries Development Fund (AFID) is a tool for communities within the Commonwealth to grow their agriculture and forestry industries through strategic grants made to businesses that add value to Virginia-grown agricultural and forestry products.

Port of Virginia Economic and Infrastructure Development Grant Program: The Port of Virginia Economic and Infrastructure Development Fund provides grants to incentivize companies to locate new maritime-related employment centers or expand existing centers in the Commonwealth to encourage and facilitate the growth of the Port of Virginia in accordance with criteria established by legislation.

 

FINANCING

Virginia Small Business Financing Authority (VSBFA): Offers programs to provide small businesses with access to capital needed for growth and expansion. Funds and programs include: Industrial Development Bonds (IDBs), Economic Development Loan Fund (EDLF), Loan Guaranty Program, SWaM Loan Fund (SLF), Virginia Capital Access Program (VCAP) Cash Collateral Program (CCP) and Small Business Investment Grant Fund (SBIGF).

Center for Innovative Technology (CIT): The Center for Innovative Technology (CIT) has been accelerating innovation, technology, and technology-based economic development opportunities and strategies for the Commonwealth of Virginia since 1984. CIT carries out its mission through four service lines: CIT Entrepreneur, CIT R&D, CIT Connect, and CIT Broadband. Funds managed include the CIT GAP Fund and the Commonwealth Research Commercialization Fund (CRCF).

 

INFRASTRUCTURE ASSISTANCE

Economic Development Access Program: Administered by the Virginia Department of Transportation, it assists localities in providing adequate road access to new and expanding basic employers.

Rail Industrial Access Program: Helps connect businesses to freight rail service by funding the construction or improvement of railroad tracks and facilities to serve industrial or commercial sites where freight rail service is currently needed or anticipated in the future. This grant program supports localities, businesses or industries seeking to provide freight rail service between the actual site of an existing or proposed commercial facility and common carrier railroad tracks.

Transportation Partnership Opportunity Fund (TPOF): Provides grants, revolving loans or other financial tools and equity contributions to encourage the development of transportation projects and to provide monies to address the transportation aspects of economic development opportunities.

 

TAX INCENTIVES

Corporate Income Tax Credits: Virginia offers a variety of tax credits that are available for use against a company’s corporate tax liability:

  • Major Business Facility Job Tax Credit
  • Worker Retraining Tax Credit
  • Refundable Research and Development Expenses Tax Credit
  • Major Research and Development Expenses Tax Credit
  • Recyclable Materials Processing Equipment Tax Credit
  • Green Job Creation Tax Credit
  • Port Volume Increase Tax Credit
  • International Trade Facility Tax Credit
  • Barge and Rail Usage Tax Credit

Property Tax Exemptions: Virginia does not tax: intangible property, which includes: manufacturers’ inventory; manufacturers’ furniture, fixtures and corporate aircraft; certified pollution control facilities and equipment; and solar energy equipment, facilities, and devices that collect, generate, transfer, or store thermal or electric energy. Localities have the option to fully or partially exempt the following property from taxation: Certified recycling equipment; rehabilitated commercial/industrial real estate for up to 15 years; manufacturers’ generating and co-generating equipment; certified solar energy devices; and environmental restoration sites (eligible real estate in the Virginia Voluntary Remediation Program). Localities may elect to tax the following tangible personal and real property at reduced rates: Research and development tangible personal property; equipment used for biotechnology research, development, and production; semiconductor manufacturing machinery and tools; computer hardware and peripherals; aircraft; clean-fuel vehicles; tangible personal property used in the provision of certain internet services; tangible personal property owned by qualifying businesses in their first two taxable years; and energy-efficient buildings.

Sales & Use Tax Exemptions: A seller is subject to a sales tax imposed on gross receipts derived from retail sales or leases of tangible personal property, unless the retail sales or leases are specifically exempt by law. When a seller does not collect the sales tax from the purchaser, the purchaser is required to pay a use tax on the purchase, unless the use of the property is exempt. Some important exemptions include: Manufacturers’ purchases used directly in production including machinery, tools, spare parts, industrial fuels, and raw materials; Items purchased for resale by distributors; Certified pollution control equipment and facilities; Custom computer software; Utilities delivered through lines, pipes, or mains; Purchases used directly and exclusively in research and development; Most film, video, and audio production-related purchases; Charges for internet access and sales of software via the internet; Purchases used directly and exclusively in activities performed in cooperation with the Virginia Commercial Space Flight Authority; Semiconductor clean rooms or equipment and other tangible personal property used primarily in the integrated process of designing, developing, manufacturing, or testing a semiconductor product; Computer equipment purchased or leased for the processing, storage, retrieval, or communication of data in large data centers (requires a minimum capital investment, job creation, and wage level to qualify); Machinery, tools, equipment, and materials used by a licensed brewer in the production of beer and materials such as labels and boxes for use in packaging and shipment for sale.

 

WORKFORCE DEVELOPMENT

Virginia Jobs Investment Program: A program that offers customized recruiting and training assistance to companies that are creating new jobs or experiencing technological change.

 

REGIONAL & LOCAL ASSISTANCE

Tobacco Region Opportunity Fund: A discretionary cash grant made to a locality in Virginia’s tobacco-producing regions by the Tobacco Region Revitalization Commission (generally in the southern and southwest regions of the state) for assistance with economic development projects.

Virginia Coalfield Economic Development Authority: The Virginia Coalfield Economic Development Authority (VCEDA) works to enhance the economic base of Virginia’s e-Region, the seven counties and one city of southwestern Virginia. The Authority provides low-interest loans to qualified new or expanding businesses through its financing program. The loans may be used for real estate purchases, construction or expansion of buildings, and the purchase of machinery and equipment. VCEDA also administers other funding programs designed to encourage economic development and diversification in Virginia’s e-Region, including the Coalfield Regional Opportunity Fund (CROF). Eligibility requirements vary by program.

Enterprise Zones: Provides state and local incentives to businesses that invest and create jobs within Virginia’s enterprise zones, which are located throughout the state. State programs include the Job Creation Grant and Real Property Investment Grant.

Defense Production Zones: Virginia authorizes its communities to establish local defense production zones to benefit businesses engaged in the design, development or production of materials, components or equipment required to meet the needs of national defense. Companies deemed ancillary to or in support of the aforementioned categories would also apply.

Foreign Trade Zones: Virginia offers six foreign trade zones designed to encourage businesses to participate in international trade by effectively eliminating or reducing customs duties. Also, numerous subzones are provided and additional ones can be designated to enhance the trade capabilities of specific companies.

Technology Zones: Virginia cities, counties and towns have the ability to establish, by ordinance, one or more technology zones to attract growth in targeted industries. Qualified businesses locating or expanding operations in a zone may receive local permit and user fee waivers, local tax incentives, special zoning treatment or exemption from ordinances. Once a local technology zone has been established, incentives may be provided for up to 10 years. Each locality designs and administers its own program.

 

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