How are awards calculated?
There is no formula for calculating the amount of the grant award. In determining grant amounts, the following criteria are considered: a Return-on-Investment (ROI) analysis, new jobs, wage levels, overall employment, capital investment, area and regional unemployment, poverty and fiscal stress, the locality’s financial support of the project, and company growth potential.
How long must the company have a presence in Virginia to be eligible for the program?
The company must have a legal presence within the Commonwealth for at least three years prior to making the announcement of capital investment to be eligible for the program.
How long does the company have to make its qualifying investment?
In general, project completion will occur within three years, but no more than five years, from the date the performance agreement is signed.
Can used equipment moved to a project site count as qualifying capital investment?
Generally, the value of used equipment transferred by the company to the project site will not count as qualifying capital investment.
What happens if the statutory minimum is not met or maintained?
If the company does not achieve the statutory minimum capital investment requirement of $25 million or does not maintain at least steady employment in the one-year period after completion of the capital investment, no VIP grant payment will be made. If the company achieves the statutory minimum capital investment and maintains steady employment but does not achieve at least 50% of the capital investment goal and any jobs goal stated in the performance agreement, no VIP grant payment will be made.
What happens if capital investment does not remain in place or if employment is not maintained during the payout period?
Failure to maintain capital investment or net employment agreed upon in the performance agreement will require the company to provide immediate notice to VEDP. In this event, the installment payments on the VIP grant will cease, but the VIP grantee will not be required to return any VIP grant installments previously paid.
What is non-qualifying capital investment?
Expenditures for maintenance, replacement or repair of existing machinery, tools, and real property shall not constitute a capital investment; however, expenditures for the replacement of property shall not be ineligible for designation as a capital investment if such replacement results in a measurable increase in productivity.
What positions do not qualify as new jobs?
Seasonal or temporary positions, positions created when a job function is shifted from an existing location in the Commonwealth, and positions with construction contractors, vendors, suppliers, and similar multiplier or spin-off jobs shall not qualify as new jobs.
Are contract employees allowed to count as new jobs?
The Commonwealth will consider dedicated, full-time, Virginia-based contractors as eligible net new jobs should the company desire to count them toward the new job targets. The requirements for contract positions are the same as those positions on the company’s payroll and would be required to meet the same requirements as a “new job.”
Can the company receive multiple VIP grants?
An applicant may be granted more than one VIP grant at a time if the scope of each project has a different timeframe and independently meets the minimum investment and all other criteria.
What can VIP funds be used for?
There are no restrictions on how VIP funds may be allocated.
What programs are included within the Virginia Investment Partnership Act?
The Virginia Investment Partnership Act comprises the Virginia Investment Performance Grant (VIP), the Major Eligible Employer Grant (MEE), and the Virginia Economic Development Incentive Grant (VEDIG).
Can the company participate in multiple performance incentive programs under the Virginia Investment Partnership Act at the same time?
Companies are only allowed to participate in one program per project under the Virginia Investment Partnership Act at any given time.