Virginia's Incentives Policy
Incentives in economic development are frequently discussed but often inadequately understood. Virginia takes very seriously her stewardship of public dollars and aims always to make wise investments. Click here for details.
Governor's opportunity fund
The Governor's Opportunity Fund (GOF) provides either grants or loans to localities to assist in the creation of new jobs and investment in accordance with critieria established by legislation.
Tobacco Region Opportunity Fund
The Tobacco Region Opportunity Fund (TROF) provides incentives for new industry locations and expansions within the tobacco region.
Transportation Partnership Opportunity Fund
The 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.
Virginia Jobs Investment Program
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 resources development costs of new and expanding companies throughout the Commonwealth. VJIP offers consulting services, organizational development, electronic media services, and funding. Click here for more information about VJIP.
Virginia Economic Development Incentive Grant
The Virginia Economic Development Incentive Grant (VEDIG) assists and encourages companies to invest and to provide new employment opportunities by locating significant headquarters, administrative, research and development and/or similar service and basic sector operations in Virginia. This is a discretionary program in which grants are negotiated and made to selected projects as an economic development incentive.
Virginia Investment Partnership and Major Eligible Employer Grant
The Virginia Investment Partnership Grant Program (VIP) and the Major Eligible Employer Grant Program (MEE) are used to encourage existing Virginia manufacturers, research and development services and other major basic employers to continue to invest in Virginia and to provide stable employment opportunities by adding production capacity, utiliziing state-of-the-art technology and modernizing assembly processes. These are discretionary programs in which grants are negotiated and offered to qualified applicants as an economic development incentive.
Major Business Facilities Job 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. This tax incentive program is administered by the Virginia Department of Taxation.
Economic Development Access Road Program
The Economic Development Access Program is a state-funded incentive program intended to assist localities in attracting sustainable businesses that create jobs and generate tax revenues within the locality. The program makes funds available to localities for road improvements needed to provide adequate access for new or substantially expanding qualifying establishments. Economic Development Access funds are allocated by the Commonwealth Transportation Board in accordance with its policy and may be used for financing the construction or improvement of secondary or local system roads within all counties and cities and certain towns that are part of the Urban System.
Virginia Enterprise Zone Program
The purpose of the Virginia Enterprise Zone Program is to encourage new business activity by providing state and local tax relief and grants, local regulatory flexibility and local infrastructure development. Click here for details.
Establishment of Technology Zones
Establishment of a technology zone allows localities to create special incentives for qualified businesses locating or expanding operations in a zone. Virginia's cities, counties and towns have the ability to establish, by ordinance, one or more technology zones to attract growth in targeted industries. Click here for details.
New Market Tax Credit Program
The federal New Market Tax Credit Program is currently the largest federal economic development incentive program.The program offers credit against federal income taxes for qualified equity investments in designated Community Development Entities. Click here for details.
Commonwealth Technology Research Fund
The sole purpose of the Commonwealth Technology Research Fund (CTRF) is to attract public and private research funding for Virginia institutions of higher education, in order to increase technological and economic development in Virginia. For more information, please visit the Center for Innovative Technology website.
Virginia Small Business Financing Authority
The Virginia Small Business Financing Authority (VSBFA) is the Commonwealth's economic development financing arm. VSBFA provides debt financing assistance to Virginia's established, existing businesses, entrepreneurs and businesses looking to expand into Virginia. For more information, please visit the VSBFA website.
Governor's Agriculture and Forestry Industries Development Fund
The Governor's Agriculture and Forestry Industries Development Fund (AFID) is a discretionary performance-based incentive designed to attract new and expanding agriculture and forestry processing/value-added facilities using Virginia-grown products.
Clean Energy Manufacturing Incentive Grant
The Clean Energy Manufacturing Incentive Grant (CEMIG) may be used to provide an incentive for a clean energy manufacturer to grow in the Commonwealth of Virginia. This is a discretionary program in which grants are negotiated and offered to eligible entities as an economic development incentive to encourage these eligible entities to locate or expand in Virginia instead of another state or country.
Establishment of Defense Production Zones
Establishment of a defense production zone allows localities to create special incentives for qualified businesses locating or expanding operations in a zone. Virginia's cities, counties and towns have the ability to establish, by ordinance, one or more defense production zones to attract growth in national defense-related businesses. Click here for details.
Historically Underutilized Business Zones (HUBZones)
The Historically Underutilized Business Zone (HUBZone) Empowerment Contracting Program is a federal program designed to stimulate economic development and create jobs in urban and rural communities. The program provides Federal contracting preferences to small businesses that obtain HUBZone certification in part by employing staff who live in a HUBZone. The company must also maintain a "principal office" in one of these specially designated areas. Click here for more information.