Virginia Port Volume Increase Grant Program

To be eligible for the Port Volume Increase Grant Program, a company must:

• Be an agricultural entity, manufacturing-related entity, or mineral and gas entity.
• Use port facilities in Virginia.
• Increase its port cargo volume at these facilities by a minimum of 5% in a single calendar year over its base-year port cargo volume.
• Own the cargo at the time that port facilities are used.

For purposes of this grant program, an “agricultural entity” is defined as a person engaged in growing or producing wheat, grains, fruits, nuts, or crops; tobacco, nursery, or floral products; forestry products, excluding raw wood fiber or wood fiber processed or manufactured for use as a fuel for the generation of electricity; or seafood, meat, dairy, or poultry products. A “manufacturing-related entity” is defined as a person engaged in the manufacturing of goods or the distribution of manufactured goods. A “mineral and gas entity” is defined as a person engaged in severing minerals or gases from the earth. 

An eligible entity may only apply to the Port Volume Increase Grant Award for cargo actually owned by the eligible entity at the time the port facilities were used (including upon shipment or on delivery) and for which the eligible entity controlled the method of transportation. Ownership is determined by the terms of the shipping contract and is evidenced by the bill of lading. When cargo originates in Virginia, there is a presumption that the company exporting the cargo out of Virginia controls the method of transportation. When a shipment terminates in Virginia, there is a presumption that the company receiving the import in Virginia controls the method of transportation.

Port cargo volume is defined as the total amount of net tons of non-containerized cargo or containers measured in TEUs of cargo transported by way of a waterborne ship or vehicle through a port facility. Base-year port cargo volume means the total amount of net tons of non-containerized cargo, TEUs of cargo, or units of roll-off cargo actually transported by way of a waterborne ship or vehicle through a port facility during the period from January 1 through December 31. Base-year port cargo volume must be recalculated each calendar year after the initial base year.

To be eligible for this grant award, the eligible entity's base-year port cargo volume must be a minimum of either 75 net (short) tons of non-containerized cargo, 10 loaded TEUs, or 10 units of roll-on/roll-off cargo. Each eligible entity must meet one of these thresholds.

For purposes of meeting the base-year port cargo volume requirement, non-containerized cargo and TEUs cannot be aggregated and no tonnage conversion formula shall apply. For eligible entities who do not ship that amount during the calendar year, as applicable, including any eligible entity that locates in Virginia after such period, the eligible entity's base-year port cargo volume will be measured by the initial calendar year in which it meets the requirement of either 75 net tons of non-containerized cargo, 10 loaded TEUs, or 10 units of roll-on/roll-off cargo.

For an eligible entity that qualifies as a major facility, defined below, may be granted a waiver of the fiver percent (5%) minimum port cargo volume requirement. 

Major facility means a new facility to be located in Virginia that is projected to import or export cargo through a port in excess of 25,000 TEUs in its first calendar year. 

The conversion of the Port Volume Increase Tax Credit to the Virginia Port Volume Increase Grant program remain active. Full details and guidelines will be published as they are made available. 

Code of Virginia

What information is needed on the application for containers?

For containers, only complete Terminal, Container #, Bill of Lading or Booking #, and Import or Export.

What information is needed on the application for non-containerized freight?

For non-containerized freight, only complete Terminal, Vessel Code, Weight, Bill of Lading or Booking #, and Import or Export.

What information is needed on the application for roll-on/roll-off cargo?

For roll-on/roll-off cargo, only complete Terminal, Bill of Lading or Booking #, Piece Count, and Commodity Description.

What if an acknowledgement letter from the Port of Virginia is not received by April 5?

Call 855.771.3990 toll-free.

Are additional attachments needed for Form PVI?

A base cargo verification summary sheet must be attached to the Form PVI application if a Port of Virginia terminal was used.

Where are applications for the grant program to be sent?

Submit Form PVI and attachments to:

Virginia Port Authority
600 World Trade Center
Norfolk, VA 23510

How is the grant award amount determined?

The Port Volume Increase Grant Program award is generally equal to $50 for each TEU above the base-year port cargo volume, or $50 for each TEU transported through a port facility during a major facility’s first calendar year. For shipments of 40-foot or 45-foot containers, one loaded container is equivalent to two TEUs. For purposes of calculating the amount of Port Volume Increase Grant program for eligible entities that ship non-containerized cargo, one TEU is equivalent to 16 net tons of non-containerized cargo. One net ton is equivalent to one short ton, or 2,200 pounds.

Can partial container loads be counted for the grant?

For purposes of determining port cargo volume, only a full container load qualifies as a TEU. A full container load (FCL) is a standard 20-foot, 40-foot, or 45-foot container that is loaded and discharged under the account of one shipper, and is intended for one consignee. A less than container load (LCL) is cargo insufficient in either weight or volume to qualify for the freight rates that apply to a standard shipping container and is therefore combined with cargo owned by other shippers or with cargo intended for at least one other consignee. An LCL does not qualify as a TEU or as non-containerized cargo for purposes of this grant.

What is the maximum amount that could be received from this tax credit?

The maximum amount of Port Volume Increase Tax Credits for all qualifying taxpayers is limited to $3.2 million for each calendar year. Generally, a qualifying taxpayer may not receive more than $250,000 worth of Port Volume Increase Tax Credits for each calendar year. However, if on March 15 of each year, the $3.2 million amount of tax credits has not been fully allocated among all qualifying taxpayers, then those taxpayers who have been allocated tax credits for the prior year shall be allowed a pro rata share of the remaining allocated tax credits, up to $3.2 million total. In this case, a qualifying taxpayer may receive an amount of tax credits that is greater than $250,000.