Incentives

Opower will receive incentives from the Commonwealth of Virginia and Arlington County for its ten million dollar headquarters expansion.

 

Arlington Economic Development is committed to attracting and retaining high-quality businesses of all shapes and sizes. When it comes to assisting businesses, we don’t believe in a “one size fits all” policy. Our approach is to get to know your business, understand your needs and find solutions that will help you grow and succeed in Arlington.

Download Arlington's Incentive Overview

 

Arlington Successes

 

Virginia Incentives

Grants

Commonwealth Opportunity Fund (COF)

COF is a discretionary incentive to secure a business location or expansion project. Grants are awarded to localities on a local matching basis. COF requires that a company make a capital investment of at least $5 million and create 50 new jobs. COF incentives are only used when Virginia faces active and realistic competition with another state for a business attraction or expansion project.

Virginia Economic Development Incentive Grant (VEDIG)

VEDIG is a discretionary cash grant to assist and encourage companies to locate significant headquarters, administrative or service sector operations in Virginia. VEDIG requires an investment of at least $5 million (or $6,500 per job) plus job creation thresholds ranging between 300-400 jobs depending on wage.

 

Hiring Reimbursements / Workforce Services

Virginia Jobs Investment Program Assistance (VJIP)

VJIP provides cash reimbursements per job, plus a variety of free recruiting and training services for new and growing companies. Requirements include new job and investment minimums:

  • Small Business New Jobs Program (companies with 250 or less people): At least a $100,000 investment and 5 new positions
  • Virginia New Job Program (companies with more than 250 people): At least a $1,000,000 investment and 25 new position

VJIP also provides support for Virginia companies that are upgrading the skills of their existing workforce. Requirements include:

  • Companies with 250 employees or less: Retraining 5 full-time employees and making a capital investment of at least $50,000
  • Companies with more than 250 employees: Retraining 10 full-time employees and making a capital investment of at least $500,000

Read more about VJIP

 

Taxes

Major Business Facility Job Tax Credit

The Major Business Facility Job Tax Credit is a $1,000 corporate income tax credit per job over a 50 job threshold; job threshold must be met within a 12-month period and taken in equal installments over a two-year period (i.e. $500 per job per year).

Read more about Virginia’s Incentive Programs

 

Arlington County Incentives

Grants

Industrial Development Authority (IDA) Performance Incentives

Arlington County offers IDA Performance Grants for priority economic development projects, including fast-growing technology companies, large office users and important research and nonprofit organizations. Typically IDA Performance Grants are used in conjunction with the Commonwealth Opportunity Fund (see page three). Award amounts for IDA Performance Grants are determined by the project’s estimated fiscal benefit to Arlington County based on the company’s industry, square footage, capital investment and number and salary of jobs. IDA Performance Grants are awarded starting in year two and are paid out over a customized performance period based on lease length. IDA Performance Grants are only used when Arlington faces active and realistic competition with another jurisdiction for a business attraction or expansion project.

Economic Development Incentive (EDI)

The EDI program will provide grants to help attract fast-growing technology companies and tech catalyst organizations (like incubators, accelerators and venture capital firms) to Arlington. The program may also be used to provide one-time grants for Arlington companies to support proof of concept for new products or technologies in a living lab/community setting. AED looks forward to rolling out the new program in mid-October, 2016.

 

Taxes

Technology Zone

Arlington County is dedicated to building the ideal innovation economy and welcoming tech sector businesses. The Technology Zone incentive is a partial offset of the Business, Professional, Occupational License (BPOL) tax, a local license tax levied on business gross receipts for the prior year. Qualified technology companies receive a 50% reduced BPOL rate – from $0.36 to $0.18 per $100 of gross receipts for 10 years. The BPOL rate continues to decrease as companies grow their employee base. Technology zones are located in Arlington’s premier high-technology business corridors and savings are equivalent to approximately $2.00 to $3.00 per square foot in building occupancy costs annually.

Read more about the Arlington Technology Zone incentive

Rehabilitation Tax Exemption

Arlington provides a ten year tax exemption on the increased assessment of rehabilitated commercial structures for qualified redevelopments.

 

Employer Programs

ConnectArlington

ConnectArlington brings Arlington’s technology infrastructure to the forefront of not only the region, but the entire country by making available its dark fiber to businesses locating in Arlington. What’s more – ConnectArlington provides direct, dedicated fiber with the highest levels of security to provide unprecedented opportunities for secure collaboration with the nation’s top defense and research agencies.

Workforce Training

The Arlington Employment Center (AEC), a County agency, provides a number of services in recruiting and training personnel at no cost to the business. For example, a business can specify its personnel needs and the Employment Center will pre-screen job applicants and provide a location to conduct interviews.

Transportation Planning Assistance

Arlington Transportation Partners (ATP) can help employers develop programs to ease the journey to work for their employees. Services such as transportation consulting and surveys are available at no cost to the business. Additionally, ATP can help businesses design commuting incentives and create Personalized Transportation Options Portfolios for each employee.

 

Financing

Industrial Revenue Bond Financing

Arlington can help qualified tax-exempt organizations finance new or expanded facilities at reduced rates through the tax-exempt Revenue Bond Program.

 

Learn More

For more information on any of these programs or assistance, contact Christina Winn, Director, Business Investment Group at 703-228-0801 or cwinn@arlingtonva.us.