The Commonwealth of Virginia is dedicated to creating a thriving economic environment for new and expanding businesses through a variety of performance-based, targeted incentives. From tax credits to tax exemptions, Virginia regularly invests in those who invest in the Commonwealth.
Recruitment and Training Incentives
The Commonwealth of Virginia offers incentives for recruitment and training of Virginia employees to both new and existing businesses through programs that assist with the hiring and training process.
- Virginia Jobs Investment Program (VJIP), provided by the Virginia Economic Development Partnership, offers customized recruiting and training services to companies creating new jobs or experiencing technological change. VJIP offers consulting services, organizational development, and funding. Funding is provided as cash reimbursements (not tax credits) and is performance based.
Virginia Enterprise Zones
The Virginia Enterprise Zone Program assists with real estate development and job creation costs in specially targeted areas identified by the locality. Two state incentives are offered to qualifying businesses and investors: Enterprise Zone Job Creation Grants and Enterprise Zone Real Property Investment Grants. These state incentives supplement the Henrico Enterprise Zone benefits.
Port of Virginia
A variety of incentives are available for businesses utilizing the public or private ports in Virginia. These programs include the Port of Virginia Volume Increase Tax Credit, Barge and Rail Tax Credit, International Trade Facility Tax Credit, and more.
Dominion Energy offers a variety of rate options that may lower operating costs for commercial and industrial users. Dominion also boasts a growing number of energy conservation and renewable energy sourcing programs.
Corporate Tax Credits
The Commonwealth of Virginia offers corporate tax credits to qualifying companies. Programs include Major Business Facility Job Tax Credit, Worker Retraining Tax Credit, Major Research and Development Expense Tax Credit, and several others.
Sales and Use Tax Exemptions
The Commonwealth of Virginia offers some of the broadest sales and use tax exemptions in the U.S. Major exemptions include:
- Computer equipment used in a data center for qualifying projects
- Manufacturers’ purchases used directly in production
- Items purchased for resale by distributors
- Utilities delivered through lines, pipes, or mains
- Purchases used for research and development
For qualifying projects, the Commonwealth of Virginia may offer one of its performance-based financial incentives through the Virginia Economic Development Partnership.
- The Commonwealth’s Opportunity Fund is a state grant that is applied for and matched by a locality and must be used for qualifying costs such as site improvements, utility improvements, and other infrastructure enhancements.
- Virginia Investment Partnership Grant (VIP) ) is a discretionary performance incentive that targets manufacturers or research and development services supporting manufacturers’ that have operated in Virginia for at least three years and are making a capital investment of at least $25 million while maintaining stable employment levels.
Additional information may be found in the Discretionary Incentives section of the Virginia Guide to Business Incentives.
Henrico County is dedicated to creating a thriving economic atmosphere for new and expanding businesses through a variety of performance-based, targeted incentives. These competitive incentives can be tailored to the specific needs of businesses - such as workforce assistance, utility and infrastructure improvements, and economic support. Discretionary incentives are available for qualifying projects based on their impact on Henrico County and are subject to a performance agreement and Board of Supervisors approval.
Progressive, Low-Tax Business Environment
Henrico County maintains a competitive business climate by progressively lowering business taxes. In the last 5 years, Henrico has lowered taxes on corporate aircraft, machinery and tools used in manufacturing, equipment used in data centers, and taxable gross receipts - without increasing local real estate tax rates.
The Henrico County Enterprise Zone is a special area identified by Henrico County and approved by the Commonwealth selected to stimulate business development and job growth. Businesses within Enterprise Zones can take advantage of state grants for job creation and real property improvements. Henrico County incentives include grants for building facade improvements, parking lots, landscaping, signage improvements, off-site improvements, building demolition, plan review/permit fee waivers, and more. The Henrico County Enterprise Zone program is administered by Henrico County’s Department of Community Revitalization.
Foreign Trade Zone #207
Foreign Trade Zone #207 (a subset of FTZ #20) is based out of the Richmond International Airport in Henrico County. Companies that locate FTZ #207 can import and process goods without being subject to U.S. Customs duties until they leave the zone for domestic consumption, thereby reducing, eliminating, or delaying duties.
Defense Production Zone
As a benefit to national defense-related businesses, Henrico County may establish a defense production zone for qualifying projects. The Defense Production Zone includes special incentives and certain regulatory flexibility for qualified businesses locating or expanding operations in a zone. While no Defense Production Zone currently exists, Henrico will establish a zone for qualified projects.
Commercial Rehabilitation Real Estate Tax Exemption
Business may receive a Rehabilitation Real Estate Partial Tax Exemption up to seven-years on the value of a rehabilitated commercial or industrial building that is at least 26 years old when the assessed value of the structure is increased by 50% or more.
Capital Region Workforce Development Assistance
The Richmond region’s network of community colleges and education agencies develops unique workforce solutions to meet business needs. The network offers tailored training and hiring assistance in the form of recruitment, certification programs, apprenticeships, process improvement, and more.
Small Business and Startups
The first $200,000 of a company’s gross receipts are exempt from Business, Professional, and Occupational License (BPOL) tax in Henrico County.
- Fast Track Approval Process - Henrico County can expedite permitting during the construction and build-out stages for qualifying companies.
- Major Project Customized Incentive - Discretionary, unique, competitive, performance-based agreement for significant new investment and job creation that yields significant benefits for Henrico County. Forms of assistance may vary based on the project's needs and Henrico’s return on investment.