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.
Agriculture and Forestry Industries Development (AFID) Fund
The Governor’s Agriculture and Forestry Industries Development (AFID) Fund is a discretionary, performance-based economic development incentive specifically for agriculture and forestry value-added or processing projects, including urban agriculture projects. The grant amount and terms are determined by the Secretary of Agriculture and Forestry and approved by the Governor.
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 five new positions
- Virginia New Job Program (companies with more than 250 people): At least a $1,000,000 investment and 25 new positions.
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 five 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
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).
Major R&D Expenses Tax Credit
Businesses with qualified research and development expenses in excess of $5 million for the taxable year may claim a tax credit equal to:
- 10% of the difference of the taxable year’s qualified research and development expenses; and;
- 50% of the average of the previous three years of expenses.
Visit Virginia Economic Development Partnership for additional incentive details