By Keiter CPAs
Growth – it’s what management aspires to and what keeps companies focused, agile and innovative.
The evolution of technology has helped many companies become more cost efficient, pioneering and able to offer higher value products and services. In many cases, this requires companies to construct new facilities, retrain existing employees and even hire new ones. While growth is the goal, it can be difficult to plan and expensive to executive.
The good news is that Virginia companies can take advantage of the Virginia Jobs Investment Program, which was designed to provide qualifying Virginia businesses with funding and other incentives to help offset the human resources and administrative costs faced by new and expanding companies. There are several programs available to help companies of all sizes.
To help clients, prospects and others leverage these incentives, Keiter has provided a summary of available opportunities below.
To qualify for any of the programs outlined below, a company must engage in a project that creates “basic employment” for Virginia residents and derive more than 50% of their revenues from out-of-state sources. Examples of activities that are considered basic include manufacturing, regional distribution centers, regional shared services centers, corporate headquarters for companies with multiple facilities, business-to-business information technology operations and research and development facilities.
Available Incentive Programs
Below is a list of incentive programs available to qualifying companies:
- Virginia New Jobs Program
This program is available to existing Virginia companies that are expanding or new facilities involved in competition with another state or country. To qualify for this program, a company must be considering another state or country for expansion, create at least 25 net new full-time jobs within 12 months, make a capital investment of $1M and pay an entry level wage of $9.79 per hour.
- Small Business New Jobs Program
This program benefits companies with 250 employees or less. To qualify, a company must create 5 net new full-time jobs within 12 months from the date of the first hire, make a capital investment of at least $100,000 associated with expansion and pay an entry level wage of $9.79.
- Workforce Retraining Program
This program provides support for Virginia companies that are upgrading the skills of their existing workforce. Participating companies must show they are undergoing integration of new technology into their processes that would require the retraining of their existing labor force. To be eligible, a company must be retaining at least 10 full-time employees (for those with 250 total employees or more) or 5 full-time employees (for those with less than 250 employees). In addition, they must make a capital investment of $500,000 (companies with 250 or more employees) or $50,000 (businesses with less than 250 employees). Finally, the company must pay at least $9.79 per hour.
Companies that qualify for one of the programs listed above are entitled to receive both funding and consulting assistance related to their project.
Direct funding is provided to qualifying companies to offset recruitment and training costs. The funding level is determined by the new full-time jobs created or employees retrained through a customized budget calculated by assessing recruiting and training costs. Funding is reimbursable for 90 days after a trainee is hired or after the retraining activity has occurred.
Consulting assistance is available via Virginia’s comprehensive educational and training system to determine the scope and depth of retraining programs, guide companies on writing job descriptions, employee handbooks and recruiting processes and assist with training assistance according to each company’s specific needs.
The Virginia Jobs Investment Program offers valuable incentives to support companies that are considering expanding in or relocating to Virginia. If you have questions about whether a project qualifies or regarding program benefits, Keiter can help. For additional information, please call us at 804-747-0000 or click here to contact us. We look forward to speaking with you.
About the Author
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.