Virginia Investment Performance Grant (VIP)

The Virginia Investment Performance Grant (VIP) encourages continued capital investment by existing Virginia companies, resulting in added productivity, or the utilization of advanced technology. The program targets existing manufacturers or research and development services supporting manufacturing. There must be an active and realistic competition between Virginia and another state or country for attracting the project, and matching local financial participation is expected. The amount of each VIP grant is determined by the Secretary of Commerce and Trade, based in part on the Virginia Economic Development Partnership’s (VEDP) Return-on-Investment analysis and recommendation, and is subject to the approval of the Governor. Contact Katherine Goodwin 804.545.5794 kgoodwin vedp.org Eligibility All projects must meet the following eligibility requirements: Project must be affiliated with a basic employer, meaning 51% or more of the facility’s revenue must be generated outside the Commonwealth. There must be an active and realistic competition between Virginia and another state or country for attracting the project. Matching local financial participation of at least 50% is expected. The project must result in capital investment of at least $25 million. “Capital investment” means an investment in real property, tangible personal property, or both at a manufacturing or basic nonmanufacturing facility within the Commonwealth that is capitalized by the company. Expenditures for repair of existing 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. The company must be a manufacturer or research and development service that supports manufacturing. "Manufacturer" means a business firm owning or operating a manufacturing establishment as defined in the Standard Industrial Classification Manual issued by the Office of Management and Budget or the North American Industry Classification System Manual issued by the United States Census Bureau. “Research and development service” means a business firm owning or operating an establishment engaged in conducting research and experimental development that supports manufacturing in the life sciences as defined in the North American Industry Classification System Manual issued by the United States Census Bureau. The company applying must have a legal presence within the Commonwealth for at least three years prior to making the announcement of the project. Although no minimum new job creation is required for a VIP grant, the investment must not result in any net reduction in employment from the date of completion of the capital investment through one year from the date of completion. "New job" means employment of an indefinite duration, created as the direct result of the private investment, for which the firm pays wages and standard fringe benefits for its employee, requiring a minimum of either (i) 35 hours of the employee's time a week for the entire normal year of the firm's operations, which "normal year" must consist of at least 48 weeks or (ii) 1,680 hours per year. If there are existing jobs at the firm’s facility, it is expected that the performance agreement will state the number of existing jobs and will require that any new jobs be in addition to the existing jobs. At the discretion of VEDP, jobs may include teleworking positions, held by Virginia residents, who are employees of the recipient company or its affiliates.

Eligibility All projects must meet the following eligibility requirements: