The Commonwealth of Virginia offers attractive incentives to qualifying relocating and expanding companies. Assistance is provided on a case-by-case basis, with job creation, quality of wages, and capital investment being the significant deciding factors. The City of Danville and the Department of Economic Development (DOED) work closely with the state to ensure that new and existing businesses in the Danville region benefit from available state assistance programs and incentives.
Virginia Enterprise Zones
The Virginia Enterprise Zone
program encourages new business activity by providing state and local tax relief and grants, local regulatory flexibility, and local infrastructure development. Available incentives include the Refundable Real Property Investment Tax Credit for investment up to $100 million, the Investment Tax Credit for investment over $100 million and job grants. For more information submit a request.
Virginia's Enterprise Zone program offers unique incentives to businesses and private investors, based on their investment and job creation within the designated EZ area. The City of Danville has three Virginia designated Enterprise Zones.
Corporate Income Tax Incentives
Virginia's corporate income tax rate is 6%, and no unitary tax is levied on Virginia companies' worldwide profits. To further enhance Virginia's favorable tax treatment, the sales factor in the state's income apportionment formula is double-weighted, benefiting companies with significant Virginia payroll and property.
Qualifying companies in Virginia also benefit from a $1,000 corporate income tax credit for each new full-time job created over a threshold number of jobs. An income tax credit is also available to manufacturers for the purchase of certified machinery and equipment used for processing recyclable materials. The credit is equal to 10% of the total original capitalized cost of the equipment.
Virginia businesses may claim tax credit equal to 25% of all expenditures incurred in the construction, renovation, planning, or acquisition of facilities for the purpose of providing day care for the children of company employees. Virginia employers will be eligible to receive an income tax credit equal to 30% of all expenditures made by the employer for worker retraining.
Sales & Use Tax Exemptions
Virginia's combined 4.5% state and local sales and use tax rate is among the lowest in the nation. A few significant exemptions include manufacturers' purchases used directly in production, including machinery, tools, spare parts, industrial fuels, and raw materials. Also exempt are items purchased for resale by distributors, certified pollution control equipment facilities, custom computer software, and those purchases used directly and exclusively in research and development.
Property Tax Incentives
Virginia does not tax property at the state level. Virginia does not tax intangible property, manufacturers' inventory, manufacturers' furniture, fixtures, or corporate aircraft. A company may pay county or city taxes, depending on the company's location.
Governor's Opportunity Fund
The Governor's Opportunity Fund
(GOF) is designed as a "deal closing" fund to be utilized at the Governor's discretion in order to secure a company location or expansion in Virginia. The GOF serves as a final resource for Virginia in the face of serious competition from other states or countries. Awards are made with the expectation that the grant to a specific locality will result in a favorable decision for the Commonwealth.
Virginia Investment Partnership Grant
The Virginia Investment Partnership Grant
is a discretionary performance incentive program in which grants are negotiated and made to selected projects that invest in Virginia and promote stable or growing employment opportunities. The program is targeted to companies who are proposing expansion projects that meet certain criteria and have operated in Virginia for at least five years.