International Trade Facility Grant Program - a component of the Port of Virginia Economic Development Program and Fund

The company must be an international trade facility. For purposes of this grant award, an “international trade facility” is defined as a company that:

• Is engaged in port-related activities.
• Uses operated marine port facilities located in Virginia.
• Transports at least 5% more cargo through maritime port facilities in the Commonwealth during the taxable year than was transported by the company through such facilities during the preceding calendar year.
• Pays a minimum entry-level wage rate per hour of at least 1.2 times the federal minimum wage or the Virginia minimum wage, as required by the Virginia Minimum Wage Act, whichever is higher. 

For purposes of this grant award, the term “international trade facility” refers to the company itself, rather than the facility where port-related activities are being conducted by the company.

Beginning January 1, 2025, the jobs portion of the International Trade Facility Grant Program is equal to $3,500 per qualified full-time employee that results from increased qualified trade activities. A “qualified full-time employee” is an employee filling a new, permanent full-time position in an international trade facility in Virginia. To qualify as a “new, permanent full-time position,” the position filled by the employee must be either:

• A job of indefinite duration, created by the company after establishing or expanding an international trade facility in Virginia, requiring a minimum of 35 hours of employment per week for the entire normal year (defined as 48 weeks in a calendar year) of the company’s operations; or
• A position of indefinite duration that requires a minimum of 35 hours of employment per week for the portion of the taxable year in which the employee was initially hired for, or transferred to, the international trade facility in Virginia.

Only employees filling permanent full-time positions qualify for this grant award. New, permanent full-time position includes security positions as required within a foreign trade zone, established pursuant to Foreign Trade Zones Act of 1934, as amended (19 U.S.C. §§ 81a through 81u). Accordingly, employees filling seasonal or temporary positions do not qualify for this grant program.

Additionally, positions that are ancillary to the principal activities performed by the employees at the international trade facility do not qualify for this credit. Such positions include jobs in building and grounds maintenance and security.

Jobs created when a job function is shifted from an existing location in Virginia to the international trade facility do not qualify for this grant award. However, otherwise qualifying jobs created when a job function is shifted from an existing location in another state to an international trade facility located in Virginia are eligible for the grant award.

"Qualified trade activities" means the completed exportation or importation of at least (i) one International Organization for Standardization ocean container with a minimum 20-foot length, (ii) 16 tons of non-containerized cargo, or (iii) one unit of roll-on/roll-off cargo through any publicly or privately owned cargo facility located within the Commonwealth through which cargo is transported. Export cargo must be loaded on a barge or ocean-going vessel, and import cargo must be discharged from a barge or ocean-going vessel at such facility.

Capital investment includes the following:

• Expenditures associated with any exterior, structural, mechanical, or electrical improvements necessary to expand or rehabilitate a building for commercial or industrial use.
• Expenditures associated with excavations, grading, paving, driveways, roads, sidewalks, landscaping, or other land improvements.
• The cost of machinery, tools, and equipment placed in service by the international trade facility on and after January 1, 2025.

For purposes of this grant award, “machinery, tools, and equipment” does not include the following:

• Property for which an International Trade Facility Tax Grant Award was previously granted.
• Property previously placed in service by the applicant, a related party as defined in IRC § 267(b), or a trade or business under common control as defined in IRC § 52(b).
• Property previously in service in Virginia that has a basis in the hands of the person acquiring it, determined in whole or in part by reference to the basis of such property in the hands of the person from whom acquired or IRC § 1014(a).

The following are not considered capital investments for purposes of this credit:

• The cost of acquiring any real property or building
• The cost of furnishings
• Any expenditure associated with appraisal, architectural, engineering, or interior design fees
• Loan fees, points, or capitalized interest
• Legal, accounting, realtor, sales and marketing, or other professional fees
• Closing costs, permit fees, user fees, zoning fees, impact fees, and inspection fees
• Bids, insurance, signage, utilities, bonding, copying, rent loss, or temporary facilities costs incurred during construction
• Utility hook-up or access fees
• Outbuildings
• The cost of any well or septic system

The Virginia Port Authority will serve as the responsible agency for administering the International Trade Facility Grant Program through the evaluation of applicants and disbursement of funds at its discretion.

An eligible international trade facility must pre-apply to the Virginia Port Authority between September 1 and October 31st in the year preceding the general application period by submitting a pre-application form found on the Port of Virginia webpage: https://operations.portofvirginia.com/grants.

Within in 45 days of the close of the pre-application period, each preapplication form must be reviewed and scored by the Incentive Grant Review Committee (IGRC)

The pre-application scoring is considered against the following criteria and description:

• Infrastructure Investment - Grant applications from companies making substantial infrastructure investments in the Commonwealth, such as the development of new port-related facilities or upgrades to existing ones, will be prioritized for their potential to catalyze economic growth, enhance logistical capabilities, and improve the competitiveness of the Commonwealth’s transportation network.

• Job Creation - Grant applicants demonstrating the ability to create new, permanent, full time job opportunities within the port ecosystem will be prioritized for their contribution to long-term economic vitality and community welfare.

• Anticipated Volume Increase - Grant applications from companies that show the largest absolute increase in cargo volumes will be prioritized for their substantial contribution to port activity and economic growth. Emphasis will be placed on the absolute magnitude of the volume increase, irrespective of percentage growth.

• On-Going Volumes - Grant applications from companies demonstrating consistent and sustained cargo volumes will be prioritized for their significant role in fostering continuous port activity and driving economic growth.

• Letter of Recommendation or State Incentive Package - When evaluating grant applicants, customers who receive a letter of recommendation from Virginia International Terminals or a State Incentive Package from a sister agency, will be prioritized for their demonstrated commitment to contribute to the economic growth of the Commonwealth and their efforts to increase international trade activities, bolster the resilience and competitiveness of the Port of Virginia, and solidify its status as a key economic gateway through increased cargo throughput.  The recommendation letters are given at the sole discretion of a senior leadership, non-committee member of the Virginia International Terminals, in recognition of specific projects which strongly align with the above-mentioned goals of the program.

In any given year, IGRC will deploy metric aggregators to identify the baseline of the tiered scoring proportionately for each category based on that year’s pool of applicant’s information. Every application year, the data provided by the applicants will be queried and a new baseline will be established and recorded.

At the completion of the due diligence process, no later than December 31 of the pre-application year, an applicant will be notified of either pre-approval or renunciation.

• Pre-approval means - the applicant/facility will be directed to complete the general application process when the program commences on January 1.

• Renunciation means – the applicant/facility was not directed to complete the general application as a result of unfulfilling the program’s anticipated qualifications.

• Failure to complete a pre-application as mentioned above, results in an awarding disqualification of this program’s funds for the year intended to apply.

• Failure to submit a general application by the deadline forfeits opportunity to be eligible to receive an award.

The general application period begins January 1 or the year immediately following the calendar year of which eligibility has been established and preapplication. Submission of the general grant application shall be made by March 31st.

General application guidelines include:

• Submission of a completed general application through the Cargo Verification Portal found on the Port of Virginia’s webpage http://tax.portofvirginia.com/ via an upload, or by email or mail to the address listed in the general application instructions;

• Providing the portal verification of the facility’s uploaded cargo details of eligible cargo volume from the base year and the preceding calendar year. The total TEUs listed on the validation summary will become a part of the application. If cargo does not originate or terminate with the Port of Virginia port facilities, the applicant must utilize the corresponding Schedule A;

• Providing quantity and affirmation of qualifying full-time employee information, if applicable, on Schedule B & C;

• Summarizing each qualifying capital investment, if applicable, on Schedule D;

• Applicant signatures;

• An upload of the facility’s W-9; and

• Any additional identifying company information requested including, but not limited to:

  - Three years of historical financial statements covering the three years prior to the application, and three years of pro forma financial statements, covering the three years following the application;

  - If the international trade facility has been in business less than three years, it may be asked to provide the historical financial statements that is available;

  - Other satisfactory evidence of a facility’s financial stability.

All information provided to the Virginia Port Authority shall remain confidential and used solely to confirm financial and employment claims.

The election of which grant award option to apply for shall be the applicant's responsibility, as both awards shall not be granted for the same activities that occur in a calendar year.

Submission of an executed application shall be a declaration that the applicant has met the definition of an international trade facility, including the Virginia minimum wage requirement.

Code of Virginia – Section 62.1-132.3:2.3

ITF Program Policy

ITF Memorandum of Understanding    

Pre-Application 

Can a company apply the International Trade Facility Grant Program to the same jobs as the Port of Virginia Economic Infrastructure Development Grant or the Major Business Facility Job Tax Credit?

No, a company may not claim the same jobs for this grant program, the Port of Virginia Economic and Infrastructure Development Grant, or the Major Business Facility Job Tax Credit.

Can affiliated companies combine employees to qualify for the grant award?

Yes, two or more affiliated companies may elect to aggregate the number of jobs created for qualified full-time employees as the result of the establishment or expansion by the individual companies to qualify for this program.

How are “affiliated companies” defined?

"Affiliated companies" are two or more companies related to each other such that one company owns at least 80% of the voting power of the other (or others), or at least 80% of the voting power of two or more companies is owned by the same interests.

How much funding is available for the ITF grant program?

The grant fund is subject to a distinct and shared appropriation cap of $2 million between the EID and ITF programs. 

Do we need to pre-apply for the International Trade Facility Grant Program?    

Yes, the mandatory Pre-Application for the Growth Incentive Grants will be available online at https://operations.portofvirginia.com/grants beginning on September 1, 2024, and all Pre-Applications are due by October 31, 2024. Questions and inquires should be sent to growthincentivegrants [at] portofvirginia.com (growthincentivegrants[at]portofvirginia[dot]com)