COST-EFFECTIVE OPERATING ENVIRONMENT
In Virginia, companies have improved their bottom lines just by locating in the state. From soft costs like healthier, more productive workers, to hard costs like cheaper, available and reliable electricity, companies have benefited from the combination of resources that only a Virginia location can offer.

• Virginia manufacturers have one of the lowest average workers' compensation costs in the country. At $2.09 per $100 of payroll in January 2009, it ranks 4th lowest nationally and is 44% lower than the U.S. average
  
  
• Unemployment tax burden, tied for 4th lowest in the nation - 37% lower than the national average
  
  
• In 2010, the average cost per unit of electricity for the industrial sector was 6.30 cents in Virginia, compared to 6.51 cents for the nation
  
  
• A 6% corporate income tax rate has not been increased since 1972
  
  
• Combined sales and use tax rate of 5% for manufacturers exemptions are comprehensive and generous
  
  
• Building costs in Virginia range from 6-22% below the national average, depending on the region of the Commonwealth
  
  
• Local taxes in Prince George County
  • Real Estate Tax: $0.80 per $100 of assessed value
  • Machinery and Tools Tax Rate: Effective rate of $0.90/$100 of value in year 1, reduced $0.15 per year to a low of $.30/$100 in years 5 and beyond
  • Tangible Personal Property Tax Rate: Effective rate of $2.40/$100 of value

Potential Incentives
Major Business Facility Job Tax Credit:

• $1,000 per job over a 25 or 50 job threshold (varies by locality); taken in equal installments over a 2-year period (i.e., $500 per job per year).

Virginia Jobs Investment Program (VJIP):

• Includes budget for cash reimbursements per job, plus a variety of free recruiting and training services; minimum wage requirement of $10 per hour.

Governor's Opportunity Fund:

• Discretionary cash grant made to a locality, typically for site development.
• Requires 100% match from the locality.
• Company’s average annual wage must exceed locality’s prevailing average annual wage or exceed 85% of prevailing wage for localities with unemployment rates above the average statewide unemployment rate.
• Requires threshold amounts of qualifying investment and job creation that varies by locality population size.

Virginia Investment Partnership Program:

• Discretionary cash grant available for existing Virginia manufacturers investing at least $25 million, with total award paid out in equal annual installments during years 3-7 following completion of the project (or during years 2-6 following completion of the project if the locality is classified as “distressed”).

Manufacturer's Exemption from Virginia Sales and Use Tax:

• Virginia's sales and use tax exemptions apply to all qualifying machinery and equipment purchases, as well as all utilities delivered through pipes, mains, and lines.

In an Enterprise Zone, the company could also qualify for these additional state incentives:

Enterprise Zone Job Creation Grant (Alternative to Major Business Facility Job Tax Credit):

• Paid in equal installments over a 5-year period; not to exceed a total of $1.4 million per project.
• $4,000 per job above the threshold amount of at least 4 net, new, qualifying jobs; new jobs must have health benefits and pay an average wage at least twice the federal minimum wage rate ($7.25 x 2 = $14.50 an hour).
• $2,500 per qualifying job above the threshold amount for companies paying an average wage 1.75 times the federal minimum wage rate ($7.25 x 1.75 = $12.69 an hour).
• Zones designated as “high” unemployment areas can qualify for the $2500 grant using a lower wage threshold of 1.5 times the federal minimum wage ($7.25 x 1. 5 = $10.88 an hour).
• New jobs with wages below $10.88 an hour are not eligible for the job grant. 

Enterprise Zone Real Property Investment Grant:

• Equal to 20% of qualified real property investments made during a 5-year period in excess of $500,000 for new construction of an individual building, and in excess of $100,000 for rehabilitation or expansion of an existing building up to a maximum $100,000 for companies investing $5,000,000 or less in qualified real property investments.
• Up to a maximum $200,000 for companies investing over $5,000,000 in qualified real property investments.
• Grant is payable after qualified improvements have been completed and verified.

Prince George County Machinery & Tools Tax Credit (5 years):

• New industry qualifies with $250,000 total investment in building & equipment and existing industry qualifies with $50,000 total. investments in building and equipment.
• Credit is equal to the amount of machinery & tools tax paid annually for a 5-year period, beginning with a maximum 60% credit in year one and decreasing 10% each year to a maximum credit of 20% in year 5.

Prince George County Utility Connection Fee Discount (50%):

• One-time incentive for new commercial or industrial entity with $250,000 total investment, of building & equipment. Equal to one half of the connection fees above $10,000, but less than $200,000.

Prince George County Rezoning Fees Waived:

• One time incentive for new business with $250,000 investment or existing business with $50,000 expansion investment.