                                 CODE OF VIRGINIA

SHORT TITLE; DEFINITIONS (§ 2.2-5100)

A. This chapter shall be known and may be cited as the &#8220;Virginia
Investment Partnership Act.&#8221;

B. As used in this chapter, unless the context requires a different meaning:
			&#8220;Average manufacturing wage&#8221; means that amount determined by the
Virginia Employment Commission to be the average wage paid manufacturing workers
in a locality or region of the Commonwealth.
			&#8220;Average nonmanufacturing wage&#8221; means that amount determined by
the Virginia Employment Commission to be the average wage paid nonmanufacturing
workers in basic employment in a locality or region of the Commonwealth.
			&#8220;Basic employment&#8221; means employment that brings new or additional
income into Virginia and adds to the gross state product.
			&#8220;Capital investment&#8221; means an investment in real property,
personal property, or both, at a manufacturing or basic nonmanufacturing
facility within the Commonwealth that is capitalized by the company and that
increases the productivity of the manufacturing facility, results in the
creation, development or utilization of a more advanced technology than is in
use immediately prior to such investment, or both. In order to qualify as a
capital investment, an investment in technology shall result in a measurable
increase in capacity or productivity, a measurable decrease in the production of
flawed product, or both. Expenditures for maintenance, replacement or repair of
existing machinery, tools and 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.
			&#8220;Eligible company&#8221; means, for companies located in a Metropolitan
Statistical Area with a population of 300,000 or more in the most recently
preceding decennial census, a Virginia employer that:
			a. (i) creates or causes to be created at least 400 jobs with average
salaries at least 50 percent greater than the Prevailing Average Wage or (ii)
creates or causes to be created at least 300 jobs with average salaries at least
100 percent greater than the Prevailing Average Wage, and
			b. makes a capital investment of at least $5 million or $6,500 per job,
whichever is greater.
			For all companies located elsewhere in Virginia, &#8220;eligible
company&#8221; shall mean a Virginia employer that creates or causes to be
created at least 200 jobs with average salaries at least 50 percent greater than
the Prevailing Average Wage, and making a capital investment of at least $6,500
per job.
			&#8220;Eligible manufacturer or research and development service&#8221; means
an existing Virginia manufacturer or research and development service that makes
a capital investment of at least $25 million that is announced on or after June
1, 1998, which investment does not result in any net reduction in employment
within one year after the capital investment has been completed and verified.
Any entity participating in any other production grant program in the
Commonwealth shall not be an eligible manufacturer or research and development
service.
			&#8220;Eligible research and development service&#8221; means an existing
Virginia research and development service that supports manufacturing and that
makes a capital investment of at least $25 million, which investment does not
result in any net reduction in employment within one year after the capital
investment has been completed and verified. Any entity participating in any
other production grant program in the Commonwealth shall not be eligible.
			&#8220;Existing Virginia manufacturer&#8221; means a manufacturer that has a
legal presence within the Commonwealth for at least three years prior to making
the announcement of the capital investment that makes it an eligible
manufacturer.
			&#8220;Flawed product&#8221; means an irregular unit of goods that cannot be
sold to an end user.
			&#8220;Fund&#8221; means the Virginia Investment Partnership Grant Fund
created pursuant to &#xA7; 2.2-5104, comprised of (i) the Major Eligible
Employer Grant subfund, (ii) the Investment Performance Grant subfund, and (iii)
the Economic Development Incentive Grant subfund.
			&#8220;Major eligible employer&#8221; means an existing Virginia manufacturer
or any other nonmanufacturing basic employer that makes a capital investment of
at least $100 million and creates at least 1,000 jobs, or corporate headquarters
and other basic employers that make a capital investment of at least $100
million and create at least 400 jobs paying at least twice the prevailing
average wage for the area.
			&#8220;Manufacturer&#8221; means a business firm owning or operating a
manufacturing establishment as defined in the Standard Industrial Classification
Manual issued by the U.S. Office of Management and Budget or the North American
Industry Classification System Manual issued by the United States Census Bureau.
			&#8220;Net present value of benefits to Virginia&#8221; means the present
value of the amount by which (i) the anticipated additional state tax revenue
expected to accrue to the Commonwealth as a result of the capital investment and
jobs created, over a period following the completion of the capital investment
not to exceed 20 years, exceeds (ii) the value of all incentives provided by the
Commonwealth, including any grant under this article, for such capital
investment during that period.
			&#8220;New job&#8221; means employment of an indefinite duration at the
eligible facility, created as the direct result of the capital investment, for
which the standard fringe benefits are paid by the firm for the employee,
requiring a minimum of either (i) 35 hours of an employee&#8217;s time a week
for the entire normal year of the firm&#8217;s operations, which &#8220;normal
year&#8221; must consist of at least 48 weeks or (ii) 1,680 hours per year.
Seasonal or temporary positions, positions created when a job function is
shifted from an existing location in the Commonwealth to the facility, and
positions with contractors, suppliers, and similar multiplier or spin-off jobs
shall not qualify as new jobs under this article.
			&#8220;Partnership&#8221; means the Virginia Economic Development
Partnership.
			&#8220;Prevailing Average Wage&#8221; means that amount determined by the
Virginia Employment Commission to be the average wage paid workers in the city
or county of the Commonwealth where the eligible company is located.
			&#8220;Productivity&#8221; means the number of hours of labor required to
produce a unit of goods.
			&#8220;Research and development service&#8221; means a business firm owning
or operating an establishment engaged in conducting research and experimental
development that supports manufacturing in the physical, engineering and life
sciences as defined in the North American Industry Classification System Manual
issued by the United States Census Bureau.
			&#8220;Secretary&#8221; means the Secretary of Commerce and Trade.

HISTORY: 1999, cc. 875, 961, §§ 2.1-548.43:1, 2.1-548.43:2; 2000, c. 571;
2001, c. 844; 2003, c. 17; 2005, c. 431; 2009, cc. 151, 174; 2012, cc. 196, 407.