There are plenty of reasons to relocate or expand your business in Virginia Beach – not the least of which is all the help you get from the City of Virginia Beach and the Commonwealth of Virginia.
Economic Development Investment Program (EDIP)
The Virginia Beach Development Authority can provide EDIP funds to qualifying businesses that are locating to or expanding in the city. The EDIP was established to support projects that create new jobs and capital investment in Virginia Beach. EDIP monies may be used for allowable infrastructure improvements and certain other project purposes, which will help to reduce the costs of relocating and expanding in our community.
Industrial Revenue Bonds
The Virginia Beach Development Authority issues Industrial Revenue Bonds to provide financial assistance to private sector entities for the acquisition and construction of industrial and commercial facilities. Upon repayment of the bonds, ownership of the facilities transfers to the private-sector entity served by the bond issuance. Since these bonds are tax-exempt, the interest rates offered are significantly lower than traditional forms of financing.
Fast-Track Construction Program
Fast-tracking streamlines permitting and construction so custom office buildings and industrial facilities can be built and operational in as little as six months. This is at least 50% less time than the typical non-fast-track construction time of 12 to 18 months or more. The Department of Economic Development will also assist fast-track companies in locating and setting up temporary training facilities at our Advanced Technology Center during construction so business operations can begin simultaneously with the move-in date.
Public-Private Partnerships
Virginia Beach is proud to be a part of several successful public-private partnerships. Through these agreements, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the sharing of resources, each party shares in the risks and rewards potential in the delivery of the service and/or facility.
The Commonwealth of Virginia
In addition to the many incentives offered by the City of Virginia Beach, the Commonwealth of Virginia also offers a number of business incentives. For more information go to: www.YesVirginia.org/whyvirginia/financial_advantages/business_incentives
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, go to the Virginia Economic Development Partnership website.
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.
Sales and use tax exemptions
Virginia has one of the lowest sales tax rates in the country - 5 percent (4 percent state, 1 percent local). 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 Department of Taxation
P.O. Box 115 Richmond, Virginia 23218
(804) 367-8037
www.tax.virginia.gov.
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.
Virginia Jobs Investment Program
The Virginia Department of Business Assistance's 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 businesses may also qualify for training and retraining programs. Visit www.dba.virginia.gov/vjip.shtml. The Small Business New Jobs Grant Fund provides grants ranging from $500 to $2,000 to small businesses creating at least five new jobs within a 12-month period.
Contact
Virginia Department of Business Assistance
1220 Bank Street
3rd Floor South
Richmond, VA 23219
(804) 371-8120
www.vdba.virginia.gov.
Business Information Services
Virginia Business One Stop is an interactive portal designed to accelerate business formation and provide information for existing businesses. The online registration system will walk a potential business owner through each step needed to establish their new business. In addition, BOS helps existing businesses expand. The tool streamlines business-registration paperwork across seven agencies.
Worker Retraining Tax Credit
Employers can receive tax credits for 30 percent of expenditures on worker retraining programs for qualified employees. The credit is capped at $2.5 million in a taxable year. Eligible programs include courses at Virginia community colleges certified by the Virginia Department of Business Assistance, or apprenticeship agreements certified by the Virginia Apprenticeship Council. For more information, visit the Virginia Department of Business Assistance website: www.vdba.virginia.gov.
Major Business Facility Job Tax Credit
Companies locating or expanding in Virginia can receive a corporate income tax credit for each new full-time job created beyond 50 jobs - or 25 jobs for companies locating in an Enterprise Zone or economically distressed area. Jobs that do not qualify include seasonal or building-related and security positions.
Green Job Creation Tax Credit
This tax credit for "green" companies awards an annual tax credit of $500 for each salary that is $50,000 or more for up to 350 jobs. The credit is allowed in the first taxable year after the job has been filled for at least one year and in each of the four succeeding years. Green jobs are related to the field of renewable, alternative energies.
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. Each locality administers its own program.
Governor's Opportunity Fund
This "deal-closing" fund is used when Virginia faces competition for a major investment in Virginia. The grant is given to a locality for the benefit of the company. It can be used for projects such as site acquisition, expansion of broadband capacity, training or construction of buildings.
Contact
Virginia Economic Development Partnership
P.O. Box 798
Richmond, VA 23218-0798
(804) 545-5610
www.YesVirginia.org
Center for Innovative Technology
CIT helps grow Virginia's technology industry. Its CIT Entrepreneur program provides up to $100,000 in funding for promising high-growth technology companies and helps owners identify potential equity investors.
Contact
CIT
2214 Rock Hill Road, Suite 600
Herndon, VA 20170-4228
(703) 689-3000
www.cit.org