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Incentives
State's pro-business environment encourages growth
The best incentive that Virginia offers is its pro-business
economic climate. By offering sound fiscal management,
conservative business regulations and a growing and diverse
economy, Virginia has positioned itself to be an excellent
place to do business.
To support a pro-business environment,
Virginia offers many incentives to assist business
growth and encourage startups. These incentives include
financial assistance, facilities development grants,
tax credits and exemptions. In addition to financial
incentives, Virginia also offers work-force training
and technical support programs. The following list
includes a few of the more popular incentives. For
more information, log on to the Virginia Economic Development
Partnership Web
site and
search for "A Virginia Guide to Business Incentives."
Work-force services
The Commonwealth's Workforce Services Jobs Investment
Program provides an economic development incentive for
business relocation and expansion projects - working
with Virginia businesses to provide customized recruiting
and training programs. Small business may also qualify
for training and retraining programs.
Corporate income tax incentives
The Virginia corporate income tax rate is a flat 6 percent.
However, the sales factor in the state's income apportionment
formula is double weighted, benefiting companies with
high payrolls and property in Virginia.
Property tax incentives
Virginia does not tax property at the state level. Real
estate and tangible personal property are taxed at
the local level. A company will pay either county or
city taxes depending on its location. There is a long
list of items that Virginia does not tax, including:
manufacturers' inventory, intangible property and furniture/
fixtures.
Sales and use tax exemptions
Virginia has one of the lowest sales tax rates in the
country - 5 percent. There are some exemptions, such
as items purchased for resale or used in manufacturing,
pollution control devices, purchases used in research
and development, and charges for utilities and Internet
access.
Contact:
Virginia Dept. of Taxation
P.O. Box 1115
Richmond, Virginia 23218
(804) 367-8037
Enterprise zones
The enterprise zone program encourages investment and
job creation in designated urban or rural zones throughout
Virginia. The program offers a 10-year tax credit against
state income tax liability and a refundable real property
investment credit for improvements to existing structures.
There are certain investment and hiring criteria that
must be met.
Contact:
Virginia Department of Housing and Community Development
501 N. Second St.
Richmond, Virginia 23219
(804) 371-7000
Technology zones
Jurisdictions in Virginia can establish technology zones
to attract targeted industries. Qualified businesses
locating or expanding in a zone receive local permit
and user fee waivers, local tax incentives, special
zoning treatment or exemptions from ordinances. Once
a zone is established, the incentives can be provided
for up to 10 years.
The Workforce
Investment Act
The WIA was established in 1998, streamlining existing
federal statutes regarding adult education, job training
and vocational training. The act created local Virginia
Workforce Councils that include representatives from
local business, education, labor and community-based
organizations. The councils are awarded grants to help
with job search assistance, career counseling, job vacancy
information and training.
Contact:
Virginia Employment Commission
703 E. Main St.
Richmond, Virginia 23219
(804) 786-1485
Foreign trade zones
There are six foreign trade zones in Virginia, designated
by the U.S. Department of Commerce. These zones allow
businesses to defer paying U.S. customs duties on imported
goods held within the zone until the goods enter the
United States for consumption. No duties are paid if
the goods are re-exported. Companies also do not have
to pay duties on any damaged goods or on waste products.
Contact:
Virginia Department of
Business Assistance
P.O. Box 446
Richmond, VA 23218
(804) 371-8200
Work Opportunity
Tax Credit Program
A federal tax credit for employers who hire workers from
one of eight target groups, such as persons 18-24, from
families receiving food stamps and disabled veterans
who have received rehabilitation services.
Contact:
Virginia Department of
Business Assistance
P.O. Box 446
Richmond, VA 23218
(804) 371-0438
Worker retraining tax credit
Employers receive tax credits for the costs of retraining
qualified employees through programs including Virginia
community college noncredit courses and courses done
through apprenticeship agreements.
Contact:
Virginia Department of
Business Assistance
P.O. Box 446
Richmond, VA 23218
(804) 371-8200
Business resource center
The Virginia Business Portal offers business information
in a convenient, user-friendly format. It can be found
on the Web.
Virginia Department of Minority Business Enterprise
The program provides advice, technical support and access
to capital for minority businesses, along with offering
certification that can help win business from state
agencies and other private-sector vendors.
Contact:
Virginia Department of Minority Business Enterprise
1111 E. Main St.
Suite 300
Richmond, VA 23219
(804) 786-5560
Virginia Small Manufacturing Assistance Program
This new program, designed to help up to 30 small manufacturers,
is managed by the Philpott Manufacturing Extension
Partnership, Virginia's Center for High Performance
Manufacturing and the Business Technology Center.
A.L. Philpott Manufacturing Extension Partnership
With field offices around the state, the VPMEP provides
manufacturers with expertise in areas such as hiring,
supply-chain management and lean management practices.
It also partners with facilities such as the Technology
Applications Center at Old Dominion University and
the Manufacturing Technology Center in Wytheville.
Contact:
A.L. Philpott Manufacturing
Extension Partnership
P.O. Box 5311
Martinsville, VA 24115
(800) 637-4634
Virginia Enterprise Initiative
A program that helps low income, women and minority entrepreneurs
get business skills training and access to capital,
including loans of up to $25,000. The program operates
at 10 sites around the state.
Contact:
Virginia Department of
Housing and
Community Development
501 N. Second St.
Richmond, VA 23219
(804) 371-7063
Virginia Small Business Financing Authority
Run by the financial services division of the Department
of Business Assistance, the authority helps businesses
with public and private financing and is the statewide
issuer of industrial development bonds.
Contact:
Virginia Department of
Business Assistance
P.O. Box 446
Richmond, VA 23218
(804) 371-8221
Center for Innovative Technology
The Center for Innovative Technology helps small innovative
companies find access to new and unique market and
investment opportunities through its CIT Entrepreneur
and CIT Connect programs.
Contact:
Center for Innovative Technology
2214 Rock Hill Road
Ste. 600
Herndon, VA 20170
(703) 689-3000
Virginia Tobacco Commission
Southside Capital
Access Program
The program encourages banks in Southside to lend money
to borrowers who might not otherwise qualify for loans.
It creates and helps to fund a loan loss reserve at each
participating bank.
Contact:
Virginia Small Business
Financing Authority
P.O. Box 446
Richmond, Virginia 23218-0446
(804) 371-8254 Fax (804) 225-3384
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