Virginia shows an average deal value of $1.00 million with 141 new jobs created per deal
GOVERNOR'S OPPORTUNITY FUND
The Governor’s Opportunity Fund (GOF) is designed as a “deal closing” fund to be employed at the Governor’s discretion when necessary to secure a company location or expansion in Virginia. The GOF serves as a final resource for Virginia in the face of serious competition from other states or countries. The GOF grant is a negotiated amount determined by the Secretary of Commerce and Trade, based on the recommendation of VEDP and subject to the approval of the Governor. A GOF grant is awarded to the Virginia locality (county, city, town or Industrial/Economic Development Authority) for the benefit of the company, with the expectation that the grant will result in a favorable decision for the Commonwealth.
Grants are made at a locality’s request for a project under the following conditions:
- Specific project capital investment, job creation and wage requirements are achieved;
- The locality participates with a matching financial commitment;
- A performance agreement is executed between the locality and the company to ensure fulfillment of promised job creation and capital investment; and
- Public announcement of the project is coordinated by the Virginia Economic Development Partnership (VEDP) and the Governor’s Office.
As with all Virginia incentives, the Commonwealth’s investment must make good fiscal sense for both sides, and must carry a suitable return for Virginia, based on a return on investment analysis prepared for every project. Minimum investment ($5 million), job creation (50 net new jobs), and wage (at least average annual local wage) thresholds must realized for consideration of the fund.
VIRGINIA INVESTMENT PARTNERSHIP (VIP)
The Virginia Investment Partnership (VIP) Grant is 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 is targeted at manufacturers or research and development services supporting manufacturing that have operated in Virginia for at least five years and are making a capital investment of at least $25 million while at least maintaining stable employment levels.
MAJOR BUSINESS FACILITY TAX CREDIT
Qualified companies locating or expanding in Virginia receive a $1,000 corporate income tax credit for each new full-time job created over a threshold number of jobs.
- Companies locating in Enterprise Zones or economically distressed areas are required to meet a 25-job threshold; all other locations have a 50-job threshold. The threshold number of jobs must be created within a 12-month period.
- The $1,000 credit is available for all qualifying jobs in excess of the threshold and is taken in equal installments over two years ($500 per year) in 2009 through 2012. Credits earned after 2012 will be taken in equal
- Non-qualifying jobs include seasonal positions, building and grounds maintenance, security, and other positions ancillary to the principal activities of the facility.
- Credits are available for taxable years before January 1, 2020. Unused credits may be carried over for up to 10 years.
VIRGINIA JOBS INVESTMENT PROGRAM (VJIP)
The Virginia Department of Business Assistance’s Virginia Jobs Investment Program (VJIP) provides customized recruiting and training services to companies creating new jobs or experiencing technological change. As a business development incentive supporting economic development efforts throughout Virginia since 1965, the program reduces the human resource development costs of new and expanding companies throughout the Commonwealth. VJIP offers consulting services, organizational development, electronic media services, and funding.
Eligibility for assistance in any of the VJIP program offerings is limited to for-profit companies that create basic employment (not engaged in retail) paying a minimum wage of $10.00 per hour. In areas that have unemployment of two times or more the state level, the wage minimum may be waived. Only full-time jobs are eligible for funding.
Companies in the following business sectors will qualify:
- Distribution centers
- Corporate headquarters for companies with multiple facilities
- Inbound call centers
- Information technology services exclusively to business
- Research and development facilities
OTHER VIRGINIA INCENTIVE PROGRAMS
- Virginia Economic Development Incentive Grant (VEDIG)
- Technology Zones
- Economic Development Access Program
- Enterprise Zones
- Foreign Trade Zones
- Defense Production Zones
- Clean Energy Manufacturing Incentive Grant
- Tobacco Region Opportunity Fund
- Transportation Partnership Opportunity Fund
- Rail Industrial Access Program
- Virginia Small Business Financing Authority
- Recycling Equipment Tax Credit
- Day Care Facility Investment Tax Credit
- Worker Retraining Tax Credit
- Virginia Port Tax Credit Program
- Research and Development Tax Credit
- Green Job Creation Tax Credit