State Incentives
You may qualify for state incentives. Explore available funding opportunities:
Commonwealth Opportunity Fund
A discretionary incentive available to the Governor to secure a business location or expansion project for Virginia. Grants are awarded to localities on a matching basis, with the expectation that the grant will result in a favorable location decision for the Commonwealth. Grants are determined by using an ROI analysis that evaluates the project’s capital investment, number of new jobs, and average wage over a 3 year period.
Tobacco Region Opportunity Fund
Provides monetary grants to localities in Virginia’s tobacco-producing regions to assist in the creation of new jobs and investments, whether through new business attraction or existing business expansion. Grants are determined by using an ROI analysis that evaluates the project’s capital investment, number of new jobs, and average wage over a 3 year period.
Virginia Jobs Investment Program
Provides services and funding to companies creating new jobs. The program targets expansions of existing companies or new facility locations. Cash grants are paid per job and are determined by the project’s capital investment, number of new jobs, average wage, and the area’s unemployment rate. VJIP services include custom-designed recruiting, training, and retraining programs to meet the company’s start-up, expansion, or retraining needs.
Virginia Enterprise Zone Real Property Grant
The Virginia Enterprise Zone program assists with business development and expansion in specially targeted areas throughout the state called “Enterprise Zones”. Real Property Enterprise Zone Grants are cash grants that are determined by the type and amounts of real property investment.
Virginia Enterprise Zone Job Creation Grant
The Virginia Enterprise Zone program assists with business development and expansion in specially targeted areas throughout the state called “Enterprise Zones”. Enterprise Zone Job Creation Grants are cash grants paid in annual installments per new qualifying job created over five years. Grants are determined by the number of new qualifying jobs and current federal minimum wage rates.
Manufacturing Sales and Use Tax Exemptions
Sales and use tax exemptions in Virginia include tangible personal property used directly in the product production. Other tax-exempt production expenses include machinery, tools, repair parts, fuel, power, energy, materials, or supplies that are used directly in manufacturing or processing products for sale or resale.
Other State Advantages
- A notable low 6% corporate income tax rate that has not increased in 30 years
- Worker’s compensation insurance cost: 50% of the national average, 3rd lowest in the nation
- Unemployment insurance tax: 40% of the national average, 6th lowest in the nation
- Right-to-Work State
Local Incentives
Local incentives offered from our government could provide your organization with an extra competitive advantage.
Click here to download a document of local incentives.
Real Property Improvement IDA Tax Grant
The local Real Property Tax Grant has been developed to complement the state enterprise zone incentives. This tax property tax grant is aimed at assisting business development and expansion in specially targeted areas throughout the state called “Enterprise Zones”. The grant requires a $50,000 minimum real property investment and is based on real property improvements assessed value. Tax grants are 100% the first year, and 50% tax grants for years two through five.
Machinery & Tools Investment IDA Tax Grant
The local Machine and Tools Tax Grant has been developed to complement the state enterprise zone incentives. This tax machine and tools tax grant is aimed at assisting business development and expansion in specially targeted areas throughout the state called “Enterprise Zones”. The grant requires a $50,000 minimum machinery & tools investment and is based on the equipment’s assessed value. Tax grants are 100% the first year, and 50% tax grants for years two through five.
Building Permit Fee Waivers
Fee waivers may be offered for projects located in a designated Enterprise Zone, and are based on the type of permit and value of the project.
Water and Sewer Connection & Availability
Fee waivers are based on meter size and consumption.
