How are awards calculated?
There is no formula for calculating the amount of the grant award. In determining grant amounts, the following criteria are considered: a Return-on-Investment (ROI) analysis, new jobs, wage levels, overall employment, capital investment, area and regional unemployment, poverty and fiscal stress, the locality’s interest in the project, and company growth potential.
How long does the company have to make its qualifying investment?
In general, project completion will occur within three years, but no more than five years, from the date the performance agreement is signed.
What is prevailing average wage?
"Prevailing average wage" is the amount determined by the Virginia Employment Commission to be the average wage paid to workers in the city or county of the Commonwealth where the economic development project is located. The prevailing average wage will be determined without regard to any fringe benefits.
What happens if the statutory minimums are not met or maintained?
No VEDIG payment in any amount will be paid if the company fails to achieve by the end date stated in the performance agreement:
- The greater of (i) the statutory minimum capital investment requirement and (ii) 50% of its capital investment goal; and
- The greater of (i) the statutory minimum new jobs requirement with average salaries at least 50% or 100% greater than the prevailing average wage in the locality, as applicable, and (ii) 50% of its goal of new jobs with average salaries at least 50% or 100% greater than the prevailing average wage in the locality, as applicable.
What happens if capital investment does not remain in place or if employment is not maintained during the payout period?
To the extent that the company achieves a significant proportion of the capital investment and new jobs by the end date stated in the performance agreement, but does not completely attain its goals, the total VEDIG grant to be paid shall be reduced proportionately, but only if the capital investment remains in place and the new jobs are maintained during the payment period, and the facility continues to operate throughout the payment period at substantially the same level as existed at the time of the completion of the capital investment.
For this purpose, in the performance agreement, it is expected that the VEDIG grant will be allocated between the capital investment goal and the new job creation goal. Generally, the allocation will reflect the results of the Return-on-investment analysis.
What positions do not qualify as new jobs?
Seasonal or temporary positions, positions created when a job function is shifted from an existing location in the Commonwealth, and positions with construction contractors, vendors, suppliers, and similar multiplier or spin-off jobs shall not qualify as new jobs.
Are contract employees allowed to count as new jobs?
The Commonwealth will consider dedicated, full-time, Virginia-based contractors as eligible net new jobs should the company desire to count them toward the new job targets. The requirements for contract positions are the same as those positions on the company’s payroll and would be required to meet the same requirements as a “new job.”
Can the company receive multiple VEDIG grants?
An applicant may be granted more than one VEDIG grant at a time if the scope of each project has a different timeframe and independently meets the minimum investment and all other criteria.
For a project investment and employment occurring in phases or stages, however, the Commonwealth will consider it as one project if: (i) the entire investment and employment are announced at one time, (ii) the phases are clearly related to one project, and (iii) the entire investment and employment proceeds normally to substantial completion, without extraordinary delays. If these conditions are met, the negotiated amount will reflect the entire single investment.
What programs are included within the Virginia Investment Partnership Act?
The Virginia Investment Partnership Act comprises the Virginia Investment Performance Grant (VIP), the Major Eligible Employer Grant (MEE), and the Virginia Economic Development Incentive Grant (VEDIG).
Can the company participate in multiple performance incentive programs under the Virginia Investment Partnership Act at the same time?
Companies are only allowed to participate in one program per project under the Virginia Investment Partnership Act at any given time.