Incentives

The Fairfax County Economic Development Authority assists companies in obtaining various state and local investment incentives. Some of the major incentives include:

State

The Virginia Jobs Investment Program (VJIP) is an economic development incentive that supports the creation of new jobs and investment in the Commonwealth by offsetting recruiting and training costs for new and expanding companies. VJIP consists of three initiatives: the New Jobs Program, the Small Business New Jobs Program and the Retraining Program. 

Eligibility for the New Jobs and Small Business New Jobs Programs is limited to projects by for-profit companies in the following business sectors:

• Manufacturing
• Distribution centers
• Corporate headquarters of companies with multiple facilities (only support positions at headquarters are funded)
• Inbound call centers
• Information technology services exclusively for businesses
• Research and development

The New Jobs Program focuses on expansions of existing companies or new facility locations. To qualify for assistance, a company must be:

• considering another state or country for the expansion or new location;
• generating more than 50 percent of its revenue outside Virginia;
• creating at least 25 net new jobs within 12 months from the date of the first hire;
• making a new capital investment of at least $1 million associated with the expansion or new location; and
• paying a minimum entry-level wage of $10 per hour. Only full-time jobs are eligible for funding.

The Small Business New Jobs Program supports start-up firms and existing Virginia businesses with 250 or fewer employees companywide. To qualify for assistance, a company must be:

• creating at least five net new jobs within 12 months from the date of the first hire;
• making a new capital investment of at least $100,000 associated with the start-up or expansion; and
• paying a minimum entry-level wage of $10 per hour. Only full-time jobs are eligible for funding.

The Retraining Program is limited to projects by for-profit companies in the manufacturing and distribution center business sectors. It provides services and funding to help them train their existing workforce. Under the program, “retraining” is defined as upgrading the skills of existing employees identified as essential to the production or distribution of a product. Participating companies typically are undergoing an integration of new technology into their production processes, changing product lines in keeping with marketplace demands or substantially changing service delivery processes, requiring an assimilation of new skills and technological capabilities. Companies may use the program no more than once every three years. To qualify for assistance, a company must be:

• retraining at least 10 full-time employees;
• making a new capital investment of at least $500,000 associated with the retraining project;
• paying a minimum entry-level wage of $10 per hour. Only full-time jobs are eligible for funding.

Other Virginia Programs: The Office of the Governor provides discretionary, deal-closing resources to qualifying companies based on criteria established by state legislation to promote the creation of new jobs and investment. These programs are usually used for activities such as transportation access, infrastructure improvements or other site-related development costs, or anything else permitted by law.

For more details, please contact the FCEDA by at 703-790-0600 or by e-mail: info@fceda.org.

Fairfax County

BPOL Tax Exemption: The Business, Professional and Occupational license (BPOL) tax is an annual tax based on gross receipts for the preceding year. Companies with gross receipts more than $10,000 must pay a fee or the tax. However, Fairfax County does allow certain specific exclusions and adjustments, including:

Software Development Companies: Software sales, leases or licensing may be excluded from gross receipts by companies that design, develop or create computer software in Fairfax County.

Government computer hardware/software sellers: The original cost (not resale price) of computer hardware or software sold under contract to a state or federal government entity in the United States within two years of purchase may be deducted from gross receipts.

Nonprofits: Except for unrelated business income, the income of charitable nonprofit organizations may be excluded from gross receipts.

For more information on the BPOL tax, call the Fairfax County Department of Tax Administration at 703-222-8234.