Virginia Tax Incentives
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Virginia Tax Incentives
Page Contents
- Cash Collateral Program
- Department of Rehabilitation Services
- Financial Incentives for Business
- Green Job Creation Tax Credit
- Major Business Facility Job Tax Credit
- Major Eligible Employer Grant
- Virginia Assistive Technology System
- Virginia Chamber of Commerce
- Virginia Economic Development Incentive Grant
- Virginia Enterprise Zone
- Virginia Guide to Business Incentives
- Virginia Jobs Investment Program
- Virginia Reuse Network
- Virginia Small Business Financing Authority
- Worker Retraining Tax Credit
Cash Collateral Program
The Virginia Small Business Financing Authority's VSBFA Cash Collateral Program CCP is designed to help Virginia's small businesses obtain the funds to start, enhance, or expand their operations and thereby create new jobs for citizens of the Commonwealth. The VSBFA participation helps reduce the bank’s credit risk in any given transaction by reducing the amount of exposure. Most typically the Cash Collateral Program is used in those instances where the applicant company has the demonstrated ability to cash flow the debt, but the collateral coverage is insufficient for the bank's normal underwriting standards.
Cash Collateral Program Fact Sheet PDF
Department of Rehabilitation Services
The Department of Rehabilitation Services DRS website has information on resources and services that help people with disabilities prepare for, find and keep employment. These services include Assistive Technology, Community Based Services and services for employers.
Department of Aging in Rehabilitation Services offers no-cost services to employers across Virginia to help with their employee recruiting, screening, training and retention efforts.
Financial Incentives for Business
The Financial Incentives for Business website has information on various tax credits offered to businesses as incentives to hire employees with disabilities or to offset the cost of hiring this group.
Green Job Creation Tax Credit
This tax credit allows a $500 income tax credit for the creation of a "green" job paying an annual salary of $50,000 for taxable years beginning on and after January 1, 2010, but before January 1, 2018. Each taxpayer is allowed a credit for up to 350 new green jobs.
In order to qualify for the tax credit, the taxpayer must have created the green job and filled it during the taxable year in which the credit is claimed. The credit is allowed for the taxable year in which the job has been filled for at least one year and for each of the four succeeding taxable years provided the job is continuously filled during the respective taxable year.
The green jobs that are created as a result of this tax provision can lead to more employment opportunities for workers with disabilities.
Virginia Pass-Through Credit Allocation PDF
Green Job Creation Tax Credit Application PDF
Major Business Facility Job Tax Credit
Companies engaged in any business in the Commonwealth, except for retail trade business, may claim a Virginia Jobs Tax Credit if the taxpayer creates new full time jobs in excess of the threshold amounts established for one of the two credit tiers. A qualified major business facility may spread the credit allowed per qualified full-time employee over two taxable years. The thresholds for the two credit tiers are as follows:
Tier 1: The qualifying threshold amount for Tier 1 is 100 new jobs for the establishment or expansion of a major business facility in Virginia. Please note that for taxpayers whose expansion year begins on or after January 1, 2010 the threshold has been reduced to 50 new jobs.
Tier 2: The qualifying threshold amount for Tier 2 is 50 new jobs for the establishment or expansion of a major business facility in a locality identified by the Virginia Economic Development Partnership as an economically distressed area or has been designated as an Enterprise Zone. Please note that for taxpayers whose expansion year begins on or after January 1, 2010 the threshold has been reduced to 25 new jobs
The business expansion generated by this tax provision could mean more employment possibilities for workers with disabilities.
Major Business Facility Job Tax Credit Application PDF
Major Eligible Employer Grant
The Major Eligible Employer Grant Program is used to encourage major basic employers to invest in Virginia and provide a significant number of stable employment opportunities by either making a significant expansion to existing operations or constructing new ones. This is a discretionary program in which grants are negotiated and offered to qualified applicants as an economic development incentive.
The job creation generated by this grant could mean more employment possibilities for workers with disabilities.
Major Eligible Employer Grant Guidelines PDF
Virginia Assistive Technology System
The mission of the Virginia Assistive Technology System VATS is to ensure that Virginians of all ages and abilities can acquire the appropriate, affordable assistive and information technologies and services they need to participate in society as active citizens.
This website offers information on the programs and services offered through VATS including links to its central and regional offices.
Equipment Exchange of the Virginia Assistive Technology System. The Virginia Reuse Network’s Equipment Exchange is a way to help Virginians with disabilities, their family members, healthcare professionals and others have access to gently used assistive technology that might otherwise be discarded.
Virginia Chamber of Commerce
The Virginia Chamber of Commerce offers its members representation in government affairs as well as connections to people and organizations that will help grow businesses. The Chamber’s publications keep members current on relevant issues effecting Virginia’s businesses.
Virginia Economic Development Incentive Grant
The Virginia Economic Development Incentive Grant is a discretionary performance incentive, designed to assist and encourage companies to invest and create new employment opportunities by locating significant headquarters, administrative or service sector operations in Virginia.
The new employment opportunities that this grant creates could mean more jobs for workers with disabilities.
Virginia Economic Development Incentive Grant Guidelines PDF
Virginia Enterprise Zone
The Virginia Enterprise Zone VEZ program is a partnership between state and local government that encourages job creation and private investment. VEZ accomplishes this by designating Enterprise Zones throughout the state and providing two grant-based incentives, the Job Creation Grant JCG and the Real Property Investment Grant RPIG, to qualified investors and job creators within those zones, while the locality provides local incentives.
Often, people with disabilities live in communities that are economically disadvantage. Proper utilization of this program will reverse this trend and increase employment opportunities for this population as well.
Virginia Guide to Business Incentives
Virginia offers a range of incentives and services to encourage business growth and reduce the costs of opening or expanding a business facility within the Commonwealth. Incentives include financial assistance, infrastructure development grants, tax credits and exemptions, customized training, and technical support programs. This guide mainly focuses on state incentive programs.
Guide to Business Incentives PDF
Virginia Jobs Investment Program
The Virginia Jobs Investment Program VJIP provides services and funding to companies creating new jobs or experiencing technological change. As a business development incentive supporting economic development since 1965, VJIP reduces the human resource development costs of new and expanding companies. With strong support from the Governor and General Assembly, VJIP is completely state-funded, demonstrating Virginia’s commitment to enhancing job opportunities for its citizens.
New career opportunities for workers with disabilities can be a positive outcome of this program.
The following website has additional information on the Virginia Jobs Investment Program.
Virginia Reuse Network
The Virginia Reuse Network is a way to make assistive technology available to employees with disabilities by reusing donated equipment. The used equipment is sanitized, repaired and refurbished before it is distributed to another individual.
Virginia Small Business Financing Authority
The Virginia Small Business Financing Authority is the Commonwealth of Virginia's economic development and business financing arm. We help banks make loans to businesses that can demonstrate repayment ability, but where the bank needs additional collateral support or a more robust secondary repayment source by providing:
- cash collateral
- subordinate companion loans
- guaranties
- loan loss reserves
- loan purchase participations
Worker Retraining Tax Credit
Virginia employers will be eligible to receive an income tax credit equal to 30 percent of all expenditures made by the employer for eligible worker retraining. For taxable years beginning on or after January 1, 2013, if the eligible worker retraining consists of courses at a private school, the credit is equal to the cost per qualified employee, up to $200 per qualified employee annually, or $300 per qualified employee annually if the eligible worker retraining includes retraining in a STEM or STEAM discipline. The credit has a statewide spending cap of $2.5 million in any fiscal year. Eligible worker retraining consists of courses at Virginia community colleges and private schools, certified by the Department of Small Business and Supplier Diversity, or retraining programs through apprenticeship agreements approved by the Commissioner of Labor and Industry.
The worker receiving instruction could be an employee with a disability who needs to be retrained to maintain employment.
Worker Retraining Tax Credit Application PDF
