Virginia has performance-based incentives for companies that locate or grow in the Commonwealth.

Discretionary Incentives

The Commonwealth of Virginia offers an array of discretionary incentives for competitive projects evaluating a Virginia location, providing financial inducements that make good fiscal sense for all parties. Performance-based incentives target the needs of companies as well as the development plans of localities and the Commonwealth.

Provides grants to localities for businesses that add value to Virginia-grown agriculture and forestry products

Provides “deal-closing” grants at the Governor's discretion to secure a company location or expansion in Virginia

The International Trade Facility Grant Program benefits companies that either create jobs or make capital investment in an international trade facility. 

Provides grants to companies to make investments and provide a significant number of stable jobs through a significant expansion or new operation

Provides grants to companies that construct new maritime-related employment centers or expand existing centers

Offers per-unit credit for “international trade facilities” that transport containers using barge or rail, rather than trucks or other motor vehicles on Virginia’s highways

Provides grants to companies that invest and create new employment opportunities by locating significant headquarters, administrative, or service sector operations in Virginia

Provides grants to existing Virginia manufacturers or manufacturing-related research and development services that continue capital investment in the Commonwealth

Virginia’s Port Volume Increase Tax Credit benefits manufacturing, distribution, agriculture, and mineral and gas companies that utilize Virginia’s port facilities. A company that increases its usage by 5% in a single calendar year over its base year of port cargo volume can receive $50 per TEU in excess over the previous year’s cargo volume

Financial Assistance

A variety of financing options are available to companies and localities through state-level partners. These programs can meet many different project sizes and financing needs.

Provides small businesses and communities with debt financing resources for business formation and expansion

Infrastructure Assistance

The Virginia Department of Transportation (VDOT) and the Virginia Department of Rail and Public Transportation (DRPT) offer several programs to assist localities in providing adequate infrastructure access for industrial and commercial projects. These programs are designed to assist Virginia localities in attracting companies that will create jobs and generate tax revenues within the locality.

Provides funds to localities for road improvements needed to create adequate access for new or substantially expanding companies

Provides funds to construct railroad tracks to new or substantially expanded industrial and commercial projects having a positive impact on economic development in Virginia

Awards grants, revolving loans, or other financial assistance to an agency or locality for projects related to transportation capacity expansion

Recruitment & Training Incentives

Virginia offers financial assistance and training to companies that seek to attract and retain qualified employees in the Commonwealth.

Provides services and funding to companies creating new jobs or implementing technological change to reduce human resource development costs for new companies, expanding companies, and companies retraining their employees

Provides world-class training and recruitment solutions that are fully customized to a company’s unique operations, equipment, standards, and culture. All program services are provided at no cost to qualified new and expanding companies as an incentive for job creation.

Regional & Local Assistance

A number of targeted incentive programs exist in designated regions of the Commonwealth and within individual localities to attract businesses and assist in their growth. These programs can be statutory or discretionary and may offer additional financing options in some areas of Virginia.

Allows businesses to defer paying U.S. Customs duties on imported goods held within the zones until the goods enter the United States for domestic consumption

Provides performance-based grants and  loans to localities in Virginia's tobacco-producing regions (34 counties and six cities in southern and southwestern Virginia)

Provides low-interest loans or grants to qualified new or expanding businesses in a seven-county, one-city region in southwestern Virginia

Provides grants to businesses that create high-wage, full-time, permanent positions with health benefits in an Enterprise Zone that are net new jobs for Virginia

Provides grants to investors that undertake rehabilitation, expansion, or new construction projects within the boundaries of an Enterprise Zone

Tax Incentives

Virginia offers stable, low-tax costs for companies, including the benefits of no franchise or net-worth tax, a modest sales tax with a broad range of exemptions, and a 6% corporate income tax rate, which has not changed since 1972. Aiding the stable tax environment in the Commonwealth is a toolbox of credits and exemptions that companies can claim on taxes ranging from the sales and use tax to the corporate income tax.

Offers sales and use tax exemptions for use by a farmer for purchase of tangible personal property for use in producing agricultural products for market, medicine and drugs sold to a veterinarian, or property used to produce agricultural products for market in an indoor, closed, controlled environment commercial agricultural facility.

Offers sales and use tax exemption for purchases used directly in production or research and development

Offers exemption for qualifying computer equipment or enabling software purchased or leased for use in certain data centers in the Commonwealth that meet minimum investment and job creation requirements

Offers annual individual or corporate income tax credit for each new green job in the field of renewable or alternative energy

Offers $1,000 income tax credit for each new full-time job created over a jobs threshold for companies locating or expanding in Virginia

Offers individual and corporate income tax credit for incurring more than $5 million of Virginia qualified research and development expenses in taxable years beginning on or after January 1, 2016

Offers an exemption from corporate income tax, and up to $2,000 per new job, for companies with no employment or property in the state prior to January 1, 2018 and that meet statutory investment and employment requirements.

An income tax credit is available to manufacturers for the purchase of certified machinery and equipment used for processing recyclable materials in taxable years beginning before January 1, 2025.

Offers individual and corporate income tax credit for taxpayers with qualified research and development expenses in Virginia under $5 million per year

Offers employer tax credit of 35% for eligible training costs of eligible worker training to qualified employees, or for the direct costs of providing manufacturing training or instruction to middle and high school students.

Telework Incentives

Many companies across the U.S. are shifting a significant portion of their workforce to permanent telework. That wave of increased telework also will affect how companies make decisions when evaluating locations for future projects. The Commonwealth of Virginia has adopted new statutory language that enables VEDP to take telework positions, held by Virginia residents, into account when offering performance-based economic development incentives for new, competitive site-selection projects. Learn more about the use of telework jobs here.