{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-405.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-405.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-405.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-405.1.html"}],"law_id":56464,"edition_id":1,"section_id":56464,"structure_id":13460,"section_number":"58.1-405.1","catch_line":"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority","history":"2018, cc. 801, 802; 2019, cc. 262, 263.","full_text":"A\n\nFor purposes of this section:\n\t\t\t“Authority” means the Virginia Economic Development Partnership Authority.\n\t\t\t“Eligible company” means a corporation or pass-through entity, as defined in § 58.1-390.1, that does not have any existing property or payroll in Virginia as of January 1, 2018, and on or after January 1, 2018, but before January 1, 2025, (i) either (a) spends at least $5 million on new capital investment in a qualified locality or qualified localities and creates at least 10 new jobs in a qualified locality or qualified localities or (b) creates at least 50 new jobs in a qualified locality or qualified localities; (ii) is a traded-sector company; and (iii) is certified by the Authority as generating a positive fiscal impact pursuant to subsection B.\n\t\t\t“New capital investment” means real property acquired in a qualified locality or qualified localities on or after January 1, 2018, but before January 1, 2025, and any improvements to real property in a qualified locality or qualified localities on or after January 1, 2018, but before January 1, 2025.\n\t\t\t“New job” means a permanent, full-time position of indefinite duration that pays at least 150 percent of the minimum wage, as defined in the Virginia Minimum Wage Act (§ 40.1-28.8 et seq.), and that requires a minimum of (i) 35 hours of an employee’s time a week for the entire normal year of the eligible company’s operations, which normal year shall consist of at least 48 weeks, or (ii) 1,680 hours per year.\n\t\t\t“Qualified development site” means real property that is in a locality adjacent to a qualified locality and, before January 1, 2018, either (i) was owned or partly owned by a qualified locality or an industrial development authority of which a qualified locality is a member or (ii) was owned or partly owned by a locality or industrial development authority, was leased to a private party, and was subject to a revenue-sharing agreement providing that a portion of the revenues from the lease would be distributed to a qualified locality. “Qualified development site” does not include real property that is not owned by the Commonwealth or a political subdivision thereof.\n\t\t\t“Qualified locality” means (i) the County of Alleghany, Bland, Buchanan, Carroll, Craig, Dickenson, Giles, Grayson, Lee, Page, Russell, Scott, Smyth, Tazewell, Washington, Wise, or Wythe or the City of Bristol, Galax, or Norton; (ii) the County of Amelia, Appomattox, Buckingham, Charlotte, Cumberland, Halifax, Henry, Lunenburg, Mecklenburg, Nottoway, Patrick, Pittsylvania, or Prince Edward or the City of Danville or Martinsville; (iii) the County of Accomack, Caroline, Essex, Gloucester, King and Queen, King William, Lancaster, Mathews, Middlesex, Northampton, Northumberland, Richmond, or Westmoreland; or (iv) the County of Brunswick or Dinwiddie or the City of Petersburg. “Qualified locality” includes a qualified development site.\n\t\t\t“Traded-sector company” means a company that directly or indirectly derives more than 50 percent of its revenue from out-of-state sources.B\n\n1. The Authority shall determine whether a company will generate a positive fiscal impact based on the following factors: (i) job creation; (ii) private capital investment; and (iii) anticipated additional state and local tax revenue. The Authority also shall consider the additional revenue the Commonwealth likely would expend in and for the localities if the economy in the localities continues to erode. In making its determination, the Authority shall consult with the Department regarding the revenue impact of certifying such company. The Authority shall certify a company only if it determines such company will generate a positive fiscal impact.2\n\nThe Authority shall deny certification to any company if it determines such taxpayer has engaged in a merger, acquisition, similar business combination, name change, change in business form, or other transaction the primary purpose of which is to obtain status as an eligible company.3\n\nThe Authority shall make an annual re-certification according to subdivision B 1, and no company shall remain an eligible company for any taxable year that the Authority does not grant re-certification.C\n\nAny eligible company may elect to apportion its income pursuant to the provisions of § 58.1-408, 58.1-417, 58.1-418, 58.1-419, 58.1-420, 58.1-422, 58.1-422.1, or 58.1-422.2, as applicable. However, if the entire business of an eligible company is transacted or conducted within the Commonwealth, it shall not apportion its income pursuant to this subsection but may elect to apportion its income pursuant to the provisions of § 58.1-405.","order_by":null,"text":{"0":{"id":206724,"text":"For purposes of this section:\n\t\t\t“Authority” means the Virginia Economic Development Partnership Authority.\n\t\t\t“Eligible company” means a corporation or pass-through entity, as defined in § 58.1-390.1, that does not have any existing property or payroll in Virginia as of January 1, 2018, and on or after January 1, 2018, but before January 1, 2025, (i) either (a) spends at least $5 million on new capital investment in a qualified locality or qualified localities and creates at least 10 new jobs in a qualified locality or qualified localities or (b) creates at least 50 new jobs in a qualified locality or qualified localities; (ii) is a traded-sector company; and (iii) is certified by the Authority as generating a positive fiscal impact pursuant to subsection B.\n\t\t\t“New capital investment” means real property acquired in a qualified locality or qualified localities on or after January 1, 2018, but before January 1, 2025, and any improvements to real property in a qualified locality or qualified localities on or after January 1, 2018, but before January 1, 2025.\n\t\t\t“New job” means a permanent, full-time position of indefinite duration that pays at least 150 percent of the minimum wage, as defined in the Virginia Minimum Wage Act (§ 40.1-28.8 et seq.), and that requires a minimum of (i) 35 hours of an employee’s time a week for the entire normal year of the eligible company’s operations, which normal year shall consist of at least 48 weeks, or (ii) 1,680 hours per year.\n\t\t\t“Qualified development site” means real property that is in a locality adjacent to a qualified locality and, before January 1, 2018, either (i) was owned or partly owned by a qualified locality or an industrial development authority of which a qualified locality is a member or (ii) was owned or partly owned by a locality or industrial development authority, was leased to a private party, and was subject to a revenue-sharing agreement providing that a portion of the revenues from the lease would be distributed to a qualified locality. “Qualified development site” does not include real property that is not owned by the Commonwealth or a political subdivision thereof.\n\t\t\t“Qualified locality” means (i) the County of Alleghany, Bland, Buchanan, Carroll, Craig, Dickenson, Giles, Grayson, Lee, Page, Russell, Scott, Smyth, Tazewell, Washington, Wise, or Wythe or the City of Bristol, Galax, or Norton; (ii) the County of Amelia, Appomattox, Buckingham, Charlotte, Cumberland, Halifax, Henry, Lunenburg, Mecklenburg, Nottoway, Patrick, Pittsylvania, or Prince Edward or the City of Danville or Martinsville; (iii) the County of Accomack, Caroline, Essex, Gloucester, King and Queen, King William, Lancaster, Mathews, Middlesex, Northampton, Northumberland, Richmond, or Westmoreland; or (iv) the County of Brunswick or Dinwiddie or the City of Petersburg. “Qualified locality” includes a qualified development site.\n\t\t\t“Traded-sector company” means a company that directly or indirectly derives more than 50 percent of its revenue from out-of-state sources.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":206725,"text":"1. The Authority shall determine whether a company will generate a positive fiscal impact based on the following factors: (i) job creation; (ii) private capital investment; and (iii) anticipated additional state and local tax revenue. The Authority also shall consider the additional revenue the Commonwealth likely would expend in and for the localities if the economy in the localities continues to erode. In making its determination, the Authority shall consult with the Department regarding the revenue impact of certifying such company. The Authority shall certify a company only if it determines such company will generate a positive fiscal impact.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B2"},"2":{"id":206726,"text":"The Authority shall deny certification to any company if it determines such taxpayer has engaged in a merger, acquisition, similar business combination, name change, change in business form, or other transaction the primary purpose of which is to obtain status as an eligible company.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"B3"},"3":{"id":206727,"text":"The Authority shall make an annual re-certification according to subdivision B 1, and no company shall remain an eligible company for any taxable year that the Authority does not grant re-certification.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"4":{"id":206728,"text":"Any eligible company may elect to apportion its income pursuant to the provisions of § 58.1-408, 58.1-417, 58.1-418, 58.1-419, 58.1-420, 58.1-422, 58.1-422.1, or 58.1-422.2, as applicable. However, if the entire business of an eligible company is transacted or conducted within the Commonwealth, it shall not apportion its income pursuant to this subsection but may elect to apportion its income pursuant to the provisions of § 58.1-405.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3"}},"ancestry":[{"id":13460,"edition_id":1,"name":"Taxation of Corporations","identifier":"10","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:44:56","date_modified":"2026-06-26 03:44:56","permalink":{"id":253359,"object_type":"structure","relational_id":13460,"identifier":"10","token":"58.1\/I\/3\/10","url":"\/58.1\/I\/3\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":60955,"structure_id":13460,"section_number":"58.1-400","catch_line":"Imposition of tax","url":"\/58.1-400\/","token":"58.1\/I\/3\/10\/58.1-400","metadata":false},{"id":58533,"structure_id":13460,"section_number":"58.1-400.1","catch_line":"Minimum tax on telecommunications companies","url":"\/58.1-400.1\/","token":"58.1\/I\/3\/10\/58.1-400.1","metadata":false},{"id":77310,"structure_id":13460,"section_number":"58.1-400.2","catch_line":"Taxation of electric suppliers, pipeline distribution companies, gas utilities, and gas suppliers","url":"\/58.1-400.2\/","token":"58.1\/I\/3\/10\/58.1-400.2","metadata":false},{"id":79891,"structure_id":13460,"section_number":"58.1-400.3","catch_line":"Minimum tax on certain electric suppliers","url":"\/58.1-400.3\/","token":"58.1\/I\/3\/10\/58.1-400.3","metadata":false},{"id":85449,"structure_id":13460,"section_number":"58.1-400.4","catch_line":"Minimum tax on home service contract providers","url":"\/58.1-400.4\/","token":"58.1\/I\/3\/10\/58.1-400.4","metadata":false},{"id":75981,"structure_id":13460,"section_number":"58.1-401","catch_line":"Exemptions and exclusions","url":"\/58.1-401\/","token":"58.1\/I\/3\/10\/58.1-401","metadata":false},{"id":56970,"structure_id":13460,"section_number":"58.1-402","catch_line":"Virginia taxable income","url":"\/58.1-402\/","token":"58.1\/I\/3\/10\/58.1-402","metadata":false},{"id":65538,"structure_id":13460,"section_number":"58.1-403","catch_line":"Additional modifications to determine Virginia taxable income for certain corporations","url":"\/58.1-403\/","token":"58.1\/I\/3\/10\/58.1-403","metadata":false},{"id":61129,"structure_id":13460,"section_number":"58.1-404","catch_line":"Reserved","url":"\/58.1-404\/","token":"58.1\/I\/3\/10\/58.1-404","metadata":false},{"id":84403,"structure_id":13460,"section_number":"58.1-405","catch_line":"Corporations transacting or conducting entire business within this Commonwealth","url":"\/58.1-405\/","token":"58.1\/I\/3\/10\/58.1-405","metadata":false},{"id":56464,"structure_id":13460,"section_number":"58.1-405.1","catch_line":"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority","url":"\/58.1-405.1\/","token":"58.1\/I\/3\/10\/58.1-405.1","metadata":false},{"id":56080,"structure_id":13460,"section_number":"58.1-406","catch_line":"Allocation and apportionment of income","url":"\/58.1-406\/","token":"58.1\/I\/3\/10\/58.1-406","metadata":false},{"id":56963,"structure_id":13460,"section_number":"58.1-407","catch_line":"How dividends allocated","url":"\/58.1-407\/","token":"58.1\/I\/3\/10\/58.1-407","metadata":false},{"id":86858,"structure_id":13460,"section_number":"58.1-408","catch_line":"What income apportioned and how","url":"\/58.1-408\/","token":"58.1\/I\/3\/10\/58.1-408","metadata":false},{"id":76197,"structure_id":13460,"section_number":"58.1-409","catch_line":"Property factor","url":"\/58.1-409\/","token":"58.1\/I\/3\/10\/58.1-409","metadata":false},{"id":54428,"structure_id":13460,"section_number":"58.1-410","catch_line":"Valuation of property owned or rented","url":"\/58.1-410\/","token":"58.1\/I\/3\/10\/58.1-410","metadata":false},{"id":80735,"structure_id":13460,"section_number":"58.1-411","catch_line":"Average value of property","url":"\/58.1-411\/","token":"58.1\/I\/3\/10\/58.1-411","metadata":false},{"id":60991,"structure_id":13460,"section_number":"58.1-412","catch_line":"Payroll factor","url":"\/58.1-412\/","token":"58.1\/I\/3\/10\/58.1-412","metadata":false},{"id":65358,"structure_id":13460,"section_number":"58.1-413","catch_line":"When compensation deemed paid or accrued in this Commonwealth","url":"\/58.1-413\/","token":"58.1\/I\/3\/10\/58.1-413","metadata":false},{"id":74292,"structure_id":13460,"section_number":"58.1-414","catch_line":"Sales factor","url":"\/58.1-414\/","token":"58.1\/I\/3\/10\/58.1-414","metadata":false},{"id":78515,"structure_id":13460,"section_number":"58.1-415","catch_line":"When sales of tangible personal property deemed in the Commonwealth","url":"\/58.1-415\/","token":"58.1\/I\/3\/10\/58.1-415","metadata":false},{"id":55363,"structure_id":13460,"section_number":"58.1-416","catch_line":"(Contingent effective date \u2014 See Editor's note) When certain other sales deemed in the Commonwealth","url":"\/58.1-416\/","token":"58.1\/I\/3\/10\/58.1-416","metadata":false},{"id":86205,"structure_id":13460,"section_number":"58.1-417","catch_line":"Motor carriers; 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This law was first created in 2018. The record of its establishment is cataloged in chapters 801<\/a> and 802<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2019, chapters 262<\/a> and 263<\/a>.<\/p>","references":[{"id":82511,"section_number":"2.2-115","catch_line":"Commonwealth's Development Opportunity Fund","order_by":null,"url":"\/2.2-115\/"},{"id":84403,"section_number":"58.1-405","catch_line":"Corporations transacting or conducting entire business within this Commonwealth","order_by":null,"url":"\/58.1-405\/"},{"id":86858,"section_number":"58.1-408","catch_line":"What income apportioned and how","order_by":null,"url":"\/58.1-408\/"},{"id":86205,"section_number":"58.1-417","catch_line":"Motor carriers; apportionment","order_by":null,"url":"\/58.1-417\/"},{"id":71471,"section_number":"58.1-418","catch_line":"Financial corporations; apportionment","order_by":null,"url":"\/58.1-418\/"},{"id":87267,"section_number":"58.1-419","catch_line":"Construction corporations; apportionment","order_by":null,"url":"\/58.1-419\/"},{"id":61390,"section_number":"58.1-420","catch_line":"Railway companies; apportionment","order_by":null,"url":"\/58.1-420\/"},{"id":75896,"section_number":"58.1-422","catch_line":"Manufacturing companies; apportionment","order_by":null,"url":"\/58.1-422\/"},{"id":56837,"section_number":"58.1-422.1","catch_line":"Retail companies; apportionment","order_by":null,"url":"\/58.1-422.1\/"},{"id":61386,"section_number":"58.1-422.2","catch_line":"Apportionment; taxpayers with enterprise data center operations","order_by":null,"url":"\/58.1-422.2\/"}],"refers_to":[{"id":74676,"section_number":"40.1-28.8","catch_line":"Short title","order_by":null,"url":"\/40.1-28.8\/"},{"id":59823,"section_number":"58.1-390.1","catch_line":"Definitions","order_by":null,"url":"\/58.1-390.1\/"},{"id":84403,"section_number":"58.1-405","catch_line":"Corporations transacting or conducting entire business within this Commonwealth","order_by":null,"url":"\/58.1-405\/"},{"id":86858,"section_number":"58.1-408","catch_line":"What income apportioned and how","order_by":null,"url":"\/58.1-408\/"},{"id":86205,"section_number":"58.1-417","catch_line":"Motor carriers; apportionment","order_by":null,"url":"\/58.1-417\/"},{"id":71471,"section_number":"58.1-418","catch_line":"Financial corporations; apportionment","order_by":null,"url":"\/58.1-418\/"},{"id":87267,"section_number":"58.1-419","catch_line":"Construction corporations; apportionment","order_by":null,"url":"\/58.1-419\/"},{"id":61390,"section_number":"58.1-420","catch_line":"Railway companies; apportionment","order_by":null,"url":"\/58.1-420\/"},{"id":75896,"section_number":"58.1-422","catch_line":"Manufacturing companies; apportionment","order_by":null,"url":"\/58.1-422\/"},{"id":56837,"section_number":"58.1-422.1","catch_line":"Retail companies; apportionment","order_by":null,"url":"\/58.1-422.1\/"},{"id":61386,"section_number":"58.1-422.2","catch_line":"Apportionment; taxpayers with enterprise data center operations","order_by":null,"url":"\/58.1-422.2\/"}],"permalink":{"id":253401,"object_type":"law","relational_id":56464,"identifier":"58.1-405.1","token":"58.1\/I\/3\/10\/58.1-405.1","url":"\/58.1-405.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-405.1\/","token":"58.1\/I\/3\/10\/58.1-405.1","dublin_core":{"Title":"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-405.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> For purposes of this section:\n\t\t\t“Authority<\/span>” means the Virginia Economic Development Partnership Authority<\/span>.\n\t\t\t“Eligible company<\/span>” means a corporation<\/span> or pass-through entity, as defined in § 58.1-390.1<\/a>, that does not have any existing property or payroll in Virginia as of January 1, 2018, and on or after January 1, 2018, but before January 1, 2025, (i) either (a) spends at least $5 million on new capital investment<\/span> in a qualified locality<\/span> or qualified localities and creates at least 10 new jobs<\/span> in a qualified locality<\/span> or qualified localities or (b) creates at least 50 new jobs<\/span> in a qualified locality<\/span> or qualified localities; (ii) is a traded-sector company<\/span>; and (iii) is certified by the Authority<\/span> as generating a positive fiscal impact pursuant to subsection B.\n\t\t\t“New capital investment<\/span>” means real property acquired in a qualified locality<\/span> or qualified localities on or after January 1, 2018, but before January 1, 2025, and any improvements to real property in a qualified locality<\/span> or qualified localities on or after January 1, 2018, but before January 1, 2025.\n\t\t\t“New job<\/span>” means a permanent, full-time position of indefinite duration that pays at least 150 percent of the minimum wage, as defined in the Virginia Minimum Wage Act (§ 40.1-28.8<\/a> et seq.), and that requires a minimum of (i) 35 hours of an employee’s time a week for the entire normal year of the eligible company<\/span>’s operations, which normal year shall consist of at least 48 weeks, or (ii) 1,680 hours per year.\n\t\t\t“Qualified development site<\/span>” means real property that is in a locality adjacent to a qualified locality<\/span> and, before January 1, 2018, either (i) was owned or partly owned by a qualified locality<\/span> or an industrial development authority<\/span> of which a qualified locality<\/span> is a member or (ii) was owned or partly owned by a locality or industrial development authority<\/span>, was leased to a private party<\/span>, and was subject to a revenue-sharing agreement providing that a portion of the revenues from the lease would be distributed to a qualified locality<\/span>. “Qualified development site<\/span>” does not include real property that is not owned by the Commonwealth or a political subdivision thereof.\n\t\t\t“Qualified locality<\/span>” means (i) the County of Alleghany, Bland, Buchanan, Carroll, Craig, Dickenson, Giles, Grayson, Lee, Page, Russell, Scott, Smyth, Tazewell, Washington, Wise, or Wythe or the City of Bristol, Galax, or Norton; (ii) the County of Amelia, Appomattox, Buckingham, Charlotte, Cumberland, Halifax, Henry, Lunenburg, Mecklenburg, Nottoway, Patrick, Pittsylvania, or Prince Edward or the City of Danville or Martinsville; (iii) the County of Accomack, Caroline, Essex, Gloucester, King and Queen, King William, Lancaster, Mathews, Middlesex, Northampton, Northumberland, Richmond, or Westmoreland; or (iv) the County of Brunswick or Dinwiddie or the City of Petersburg. “Qualified locality<\/span>” includes a qualified development site<\/span>.\n\t\t\t“Traded-sector company<\/span>” means a company that directly or indirectly derives more than 50 percent of its revenue from out-of-state sources. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. The Authority<\/span> shall determine whether a company will generate a positive fiscal impact based on the following factors: (i) job creation; (ii) private capital investment; and (iii) anticipated additional state and local tax revenue. The Authority<\/span> also shall consider the additional revenue the Commonwealth likely would expend in and for the localities if the economy in the localities continues to erode. In making its determination, the Authority<\/span> shall consult with the Department<\/span> regarding the revenue impact of certifying such company. The Authority<\/span> shall certify a company only if it determines such company will generate a positive fiscal impact. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Authority<\/span> shall deny certification to any company if it determines such taxpayer<\/span> has engaged in a merger, acquisition, similar business combination, name change, change in business form, or other transaction the primary purpose of which is to obtain status as an eligible company<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The Authority<\/span> shall make an annual re-certification according to subdivision B 1, and no company shall remain an eligible company<\/span> for any taxable year that the Authority<\/span> does not grant re-certification. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any eligible company<\/span> may elect to apportion its income pursuant to the provisions of § 58.1-408<\/a>, 58.1-417<\/a>, 58.1-418<\/a>, 58.1-419<\/a>, 58.1-420<\/a>, 58.1-422<\/a>, 58.1-422.1<\/a>, or 58.1-422.2<\/a>, as applicable. However, if the entire business of an eligible company<\/span> is transacted or conducted within the Commonwealth, it shall not apportion its income pursuant to this subsection but may elect to apportion its income pursuant to the provisions of § 58.1-405<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nELIGIBILITY OF COMPANIES FOR APPORTIONMENT MODIFICATION; CERTIFICATION BY THE\nVIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP AUTHORITY (\u00a7 58.1-405.1)\n\nA. For purposes of this section:\n\t\t\t“Authority” means the Virginia Economic Development Partnership\nAuthority.\n\t\t\t“Eligible company” means a corporation or pass-through entity, as\ndefined in § 58.1-390.1, that does not have any existing property or\npayroll in Virginia as of January 1, 2018, and on or after January 1, 2018, but\nbefore January 1, 2025, (i) either (a) spends at least $5 million on new capital\ninvestment in a qualified locality or qualified localities and creates at least\n10 new jobs in a qualified locality or qualified localities or (b) creates at\nleast 50 new jobs in a qualified locality or qualified localities; (ii) is a\ntraded-sector company; and (iii) is certified by the Authority as generating a\npositive fiscal impact pursuant to subsection B.\n\t\t\t“New capital investment” means real property acquired in a\nqualified locality or qualified localities on or after January 1, 2018, but\nbefore January 1, 2025, and any improvements to real property in a qualified\nlocality or qualified localities on or after January 1, 2018, but before January\n1, 2025.\n\t\t\t“New job” means a permanent, full-time position of indefinite\nduration that pays at least 150 percent of the minimum wage, as defined in the\nVirginia Minimum Wage Act (§ 40.1-28.8 et seq.), and that requires a\nminimum of (i) 35 hours of an employee’s time a week for the entire normal\nyear of the eligible company’s operations, which normal year shall consist\nof at least 48 weeks, or (ii) 1,680 hours per year.\n\t\t\t“Qualified development site” means real property that is in a\nlocality adjacent to a qualified locality and, before January 1, 2018, either\n(i) was owned or partly owned by a qualified locality or an industrial\ndevelopment authority of which a qualified locality is a member or (ii) was\nowned or partly owned by a locality or industrial development authority, was\nleased to a private party, and was subject to a revenue-sharing agreement\nproviding that a portion of the revenues from the lease would be distributed to\na qualified locality. “Qualified development site” does not include\nreal property that is not owned by the Commonwealth or a political subdivision\nthereof.\n\t\t\t“Qualified locality” means (i) the County of Alleghany, Bland,\nBuchanan, Carroll, Craig, Dickenson, Giles, Grayson, Lee, Page, Russell, Scott,\nSmyth, Tazewell, Washington, Wise, or Wythe or the City of Bristol, Galax, or\nNorton; (ii) the County of Amelia, Appomattox, Buckingham, Charlotte,\nCumberland, Halifax, Henry, Lunenburg, Mecklenburg, Nottoway, Patrick,\nPittsylvania, or Prince Edward or the City of Danville or Martinsville; (iii)\nthe County of Accomack, Caroline, Essex, Gloucester, King and Queen, King\nWilliam, Lancaster, Mathews, Middlesex, Northampton, Northumberland, Richmond,\nor Westmoreland; or (iv) the County of Brunswick or Dinwiddie or the City of\nPetersburg. “Qualified locality” includes a qualified development\nsite.\n\t\t\t“Traded-sector company” means a company that directly or\nindirectly derives more than 50 percent of its revenue from out-of-state\nsources.\n\nB. 1. The Authority shall determine whether a company will generate a positive\nfiscal impact based on the following factors: (i) job creation; (ii) private\ncapital investment; and (iii) anticipated additional state and local tax\nrevenue. The Authority also shall consider the additional revenue the\nCommonwealth likely would expend in and for the localities if the economy in the\nlocalities continues to erode. In making its determination, the Authority shall\nconsult with the Department regarding the revenue impact of certifying such\ncompany. The Authority shall certify a company only if it determines such\ncompany will generate a positive fiscal impact.\n\n 2. The Authority shall deny certification to any company if it determines such\n taxpayer has engaged in a merger, acquisition, similar business combination,\n name change, change in business form, or other transaction the primary purpose\n of which is to obtain status as an eligible company.\n\n 3. The Authority shall make an annual re-certification according to\n subdivision B 1, and no company shall remain an eligible company for any\n taxable year that the Authority does not grant re-certification.\n\nC. Any eligible company may elect to apportion its income pursuant to the\nprovisions of § 58.1-408, 58.1-417, 58.1-418, 58.1-419, 58.1-420, 58.1-422,\n58.1-422.1, or 58.1-422.2, as applicable. However, if the entire business of an\neligible company is transacted or conducted within the Commonwealth, it shall\nnot apportion its income pursuant to this subsection but may elect to apportion\nits income pursuant to the provisions of § 58.1-405.\n\nHISTORY: 2018, cc. 801, 802; 2019, cc. 262, 263.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}