Virginia Economic Development Incentive Grant
About the Program
The Virginia Economic Development Incentive Grant program (VEDIG) assists and encourages companies to invest in and create new employment opportunities by locating significant headquarters, administrative, or service-sector operations in Virginia. There must be active, realistic competition between Virginia and another state or country to attract the project.
The amount of each VEDIG grant is determined by the Secretary of Commerce and Trade, based in part on the Virginia Economic Development Partnership’s (VEDP) Return-on-Investment analysis and recommendation, and is subject to the approval of the Governor.
The program offers cash grants to qualified applicants. Grants are paid in five equal annual installments beginning in the first year after the capital investment and job creation or retention are achieved. There are no restrictions on the expenditure of the grant proceeds.
Minimum capital investment, new job, and wage thresholds are based on the Virginia area wh the company is located.
All projects must meet the following eligibility requirements:
- Project must be affiliated with a basic employer, meaning 51% or more of the facility’s revenue must be generated outside the Commonwealth.
- There must be an active and realistic competition between Virginia and another state or country for attracting the project.
A company located in a Metropolitan Statistical Area (MSA) with a population of 300,000 or more in the most recent decennial census must:
- Create 400 new full-time jobs with average salaries at least 150% of the local prevailing average wage, or create 300 new full-time jobs with average salaries at least 200% of the local prevailing average wage.
- Make a capital investment of at least $5 million or $6,500 per job, whichever is greater.
A company locating elsewhere in Virginia must:
- Create 200 new full-time jobs with average salaries at least 150% of the local prevailing average wage.
- Make a capital investment of at least $6,500 per job.
Minimum capital investment, new job, and wage thresholds must be met and are based on the area of Virginia in which the company is locating.
- “Capital investment” means an investment in real property, tangible personal property, or both at the facility within the Commonwealth.
- "New job" means employment of an indefinite duration for which the company pays the wages and standard fringe benefits for its employee, requiring a minimum of either (i) 35 hours of the employee's time a week for the entire normal year of the firm's operations, which "normal year" must consist of at least 48 weeks or (ii) 1,680 hours per year. If there are existing jobs at the firm’s facility, it is expected that the performance agreement will state the number of existing jobs and will require that any new jobs be in addition to the existing jobs.
- At the discretion of VEDP, jobs may include teleworking positions, held by Virginia residents, who are employees of the recipient company or its affiliates.
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