RD550 - Effectiveness of Economic Development Incentive Grant Programs Administered by the Commonwealth of Virginia – November 15, 2019

Executive Summary:

The Virginia Economic Development Partnership (VEDP) has prepared this report in accordance with the Code of Virginia § 2.2-206.2 (“the Code"), in order to provide a summary of information on the performance of economic development incentive programs within the Commonwealth of Virginia. This is the sixth annual report providing such summary information on these programs. The goal of this report is to provide data and relevant measures of effectiveness on each incentive program in a transparent and easy-to-understand format.

The Code requires at least three years of historical data be included, but the report includes five years of historical data to better illustrate the performance of each program.

In accordance with the Code, VEDP has prepared this report for the required State entities that administer the following incentive programs: 1| VEDP: Advanced Shipbuilding Training Facility Grant Program (ASTFGP), Aerospace Engine Manufacturing Performance Grant Program (AEMPFG), Commonwealth's Development Opportunity Fund (COF), Investment Partnership Grant subfund (VIP), Major Eligible Employer Grant subfund (MEE), Semiconductor Memory or Logic Wafer Manufacturing Performance Grant Program (SEMI) as it was in effect prior to July 1, 2016, Economic Development Incentive Grant subfund (VEDIG), Virginia Jobs Investment Program (VJIP), and any customized incentive grants [Advanced Shipbuilding Production Facility Grant (ASPFG), Major Headquarters Workforce Grant Program (MHWG), Semiconductor Manufacturing Grant Fund (SMG), and Special Workforce Grant Program (SWG)], 2| Department of Housing and Community Development: Enterprise Zone Job Creation and Enterprise Zone Real Property Investment Grants (JCG & RPIG, respectively), 3| Tobacco Region Revitalization Commission: Tobacco Region Opportunity Fund (TROF), 4| Virginia Tourism Authority: Governor’s Motion Picture Opportunity Fund (GMPOF), 5| Virginia Port Authority: Port of Virginia Economic and Infrastructure Development Grant Program (POVEIDGP), and 6| Innovation and Entrepreneurship Investment Authority: Growth Acceleration Program (GAP).

In addition, three additional incentives programs have been included in this report for added transparency purposes. The State entity and incentive programs for these are as follows: 1| Virginia Department of Agriculture and Consumer Services: Agriculture & Forestry Industries Development Fund (AFID), 2| Department of Rail and Public Transportation: Rail and Industrial Access Fund (RIAF), and 3| Virginia Department of Transportation: Economic Development Access Program (EDAP). Absent from this report are the Clean Energy Manufacturing Incentive Grant Program (CEMIG) and Specialized Biotechnology Research Performance Grant Program (SBRPG), which were required to be reported in § 2.2-206.2 but have been subsequently repealed by legislative act.

This FY2019 report follows the format established in 2016. In addition to this report, the reporting agencies launched an interactive website ( http://www.virginiaincentives.org) to provide interested citizens with access to data on Virginia’s incentives.