State Incentives

Financial Assistance

Small Business Environmental Compliance Assistance Fund—Loans or to guarantee loans to small businesses for environmental pollution control or prevention equipment

Virginia Defense Conversion Revolving Loan Fund—Finance new manufacturing plants or improvements to existing manufacturing plants can obtain long-term financing at favorable interest rates; an IDB is a form of tax-exempt municipal bond

Industrial Development Bonds

Virginia Small Business Financing Authority—Commonwealth’s economic development financing arm providing debt financing assistance

Virginia Economic Development Revolving Loan Fund

Loan Guaranty Program— the Virginia Small Business Financing Authority will guarantee a portion of a loan or line of credit extended by a commercial bank to a qualified Virginia business.

Virginia Investment Partnership Grant Fund—Existing Virginia manufacturers or research and development services to continue to invest in Virginia and adding capacity, utilizing technology, and modernizing assembly processes.

Export Financing Assistance Program

Child Day Care Financing Program—Low-interest installment loans to “regulated” Providers in the Commonwealth of Virginia

Governor’s Opportunity Fund—Discretionary funds available to the Governor to secure a business location or expansion project for Virginia

Community Development Block Grants—DHCD provides funding to eligible units of local government (non-entitlement communities only) for projects that address critical community needs including housing, infrastructure, and economic development.

Solar Photovoltaic Manufacturing Grants—A performance-based incentive for the product development and manufacture of a high-technology, renewable energy source in Virginia.

Infrastructure Development Grants

Industrial Access Road Program—Provides for adequate access to qualifying development sites, including a new roadway, improvement of an existing roadway, or both to serve the designated site

Rail Industrial Access Program—Fosters rail development and access to freight rail service for new or expanding business and industries

Foreign Trade Zones—”expedite and encourage foreign commerce” in the United States

Customized Workforce Training

  • Workforce services including consulting, video production, and funding of training
  • Regional Workforce Development Initiative: wage and skills survey, Workforce Development Center

Tax Credits and Exemptions

  • Major Business Facility Job Tax Credit—Companies engaged in any business in the Commonwealth, except for retail trade business, may claim a Virginia tax credit if the taxpayer creates at least 100 new full-time jobs in connection with the establishment or expansion of a major business facility
  • Recycling Equipment Tax Credit—Recycling equipment income tax credit equal to 10 percent of the equipment purchase price. Machinery and equipment must be used to manufacture, process, compound, or produce items from recyclable materials. Retail sales and use tax exemption for machinery, equipment, and power used by industrial recyclers.
  • Enterprise Zone Tax Credits
  • Sales and Use Tax Exemptions
  • Day Care Facility Investment Tax Credit
  • Worker Retraining Tax Credit - allows an employer to claim a tax credit for the training costs of providing eligible worker retraining to qualified employees
  • Technology Zone Tax Credits

Technical Support Programs:

Virginia Leaders in Export Trade (VALET)

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