Incentives
State's pro-business environment encourages growth

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, log on to the Virginia Economic Development Partnership Web site and search for "A Virginia Guide to Business Incentives."

Work-force services
The Commonwealth's Workforce Services 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 business may also qualify for training and retraining programs.

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.

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.

Sales and use tax exemptions
Virginia has one of the lowest sales tax rates in the country - 5 percent. 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 Dept. of Taxation
P.O. Box 1115
Richmond, Virginia 23218
(804) 367-8037

Enterprise zones
The enterprise zone program encourages investment and job creation in designated urban or rural zones throughout Virginia. The program offers a 10-year tax credit against state income tax liability and a refundable real property investment credit for improvements to existing structures. There are certain investment and hiring criteria that must be met.

Contact:
Virginia Department of Housing and Community Development
501 N. Second St.
Richmond, Virginia 23219
(804) 371-7000

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.

The Workforce Investment Act
The WIA was established in 1998, streamlining existing federal statutes regarding adult education, job training and vocational training. The act created local Virginia Workforce Councils that include representatives from local business, education, labor and community-based organizations. The councils are awarded grants to help with job search assistance, career counseling, job vacancy information and training.

Contact:
Virginia Employment Commission
703 E. Main St.
Richmond, Virginia 23219
(804) 786-1485

Foreign trade zones
There are six foreign trade zones in Virginia, designated by the U.S. Department of Commerce. These zones allow businesses to defer paying U.S. customs duties on imported goods held within the zone until the goods enter the United States for consumption. No duties are paid if the goods are re-exported. Companies also do not have to pay duties on any damaged goods or on waste products.

Contact:
Virginia Department of Business Assistance
P.O. Box 446
Richmond, VA 23218
(804) 371-8200

Work Opportunity Tax Credit Program
A federal tax credit for employers who hire workers from one of eight target groups, such as persons 18-24, from families receiving food stamps and disabled veterans who have received rehabilitation services.

Contact:
Virginia Department of Business Assistance
P.O. Box 446
Richmond, VA 23218
(804) 371-0438

Worker retraining tax credit
Employers receive tax credits for the costs of retraining qualified employees through programs including Virginia community college noncredit courses and courses done through apprenticeship agreements.

Contact:
Virginia Department of Business Assistance
P.O. Box 446
Richmond, VA 23218
(804) 371-8200

Business resource center
The Virginia Business Portal offers business information in a convenient, user-friendly format. It can be found on the Web.

Virginia Department of Minority Business Enterprise
The program provides advice, technical support and access to capital for minority businesses, along with offering certification that can help win business from state agencies and other private-sector vendors.

Contact:
Virginia Department of Minority Business Enterprise
1111 E. Main St.
Suite 300
Richmond, VA 23219
(804) 786-5560

Virginia Small Manufacturing Assistance Program
This new program, designed to help up to 30 small manufacturers, is managed by the Philpott Manufacturing Extension Partnership, Virginia's Center for High Performance Manufacturing and the Business Technology Center.

A.L. Philpott Manufacturing Extension Partnership
With field offices around the state, the VPMEP provides manufacturers with expertise in areas such as hiring, supply-chain management and lean management practices. It also partners with facilities such as the Technology Applications Center at Old Dominion University and the Manufacturing Technology Center in Wytheville.

Contact:
A.L. Philpott Manufacturing Extension Partnership
P.O. Box 5311
Martinsville, VA 24115
(800) 637-4634

Virginia Enterprise Initiative
A program that helps low income, women and minority entrepreneurs get business skills training and access to capital, including loans of up to $25,000. The program operates at 10 sites around the state.

Contact:
Virginia Department of Housing and Community Development
501 N. Second St.
Richmond, VA 23219
(804) 371-7063

Virginia Small Business Financing Authority
Run by the financial services division of the Department of Business Assistance, the authority helps businesses with public and private financing and is the statewide issuer of industrial development bonds.

Contact:
Virginia Department of Business Assistance
P.O. Box 446
Richmond, VA 23218
(804) 371-8221

Center for Innovative Technology
The Center for Innovative Technology helps small innovative companies find access to new and unique market and investment opportunities through its CIT Entrepreneur and CIT Connect programs.

Contact:
Center for Innovative Technology
2214 Rock Hill Road
Ste. 600
Herndon, VA 20170
(703) 689-3000

Virginia Tobacco Commission
Southside Capital Access Program
The program encourages banks in Southside to lend money to borrowers who might not otherwise qualify for loans. It creates and helps to fund a loan loss reserve at each participating bank.

Contact:
Virginia Small Business Financing Authority
P.O. Box 446
Richmond, Virginia 23218-0446
(804) 371-8254 Fax (804) 225-3384