                                 CODE OF VIRGINIA

REVIEW OF INCENTIVE PACKAGES (§ 30-310)

A. 1. The Commission shall review individual incentive packages, including but
not limited to packages offering tax incentives, for economic development, film,
and episodic television projects (including but not limited to MEI projects) for
which (i) one or more of the incentives in the incentive package is not
authorized under current law or an amendment by the General Assembly is being
sought to one or more currently existing incentives included as part of the
incentive package, (ii) one of the incentives being sought includes a cash
payment to a private sector business of more than $3.5 million from any fund
prior to any performance metrics being met by the proposed project, or (iii) the
aggregate amount of incentives to be provided by the Commonwealth in the
incentive package including discretionary grants, general or nongeneral funds,
proceeds from bonds, rights to lease property at below fair market value, or any
other incentives from the Commonwealth is in excess of $10 million in value.
Except for the value of any sales tax exemption available pursuant to
subdivision 18 of § 58.1-609.3 or tax credit available pursuant to §
58.1-439.12:03, the value of any existing nondiscretionary incentives shall not
be considered in calculating whether the incentives are in excess of $10 million
in value, and no review shall be required for a project if the only incentives
to be provided to a potential project are nondiscretionary incentives. The
Commission shall also review economic development projects in which a business
relocates or expands its operations in one or more Virginia localities and
simultaneously closes its operations or substantially reduces the number of its
employees in another Virginia locality if the aggregate amount of incentives to
be provided by the Commonwealth in the incentive package including discretionary
grants, general or nongeneral funds, proceeds from bonds, rights to lease
property at below fair market value, or any other incentives from the
Commonwealth is in excess of $2.5 million in value. The Commission shall
recommend approval or denial of such packages and projects to the General
Assembly. Factors that shall be considered by the Commission in its review shall
include but not be limited to (a) return on investment, (b) the time frame for
repayment of incentives to the Commonwealth, (c) average wages of the jobs
created by the prospective MEI project or other economic development project,
(d) the amount of capital investment that is required, and (e) the need for
enhanced employment opportunities in the prospective location of the prospective
MEI project or other economic development project.

   2. a. Any time a proposed individual incentive package is to be considered by
   the Commission, materials outlining (i) the value of the proposed incentives;
   (ii) assumed return on investment; (iii) the time frame for repayment of
   incentives to the Commonwealth; (iv) average wages of the jobs created by the
   prospective economic development, film, or episodic television project; (v)
   the amount of capital investment that is required; (vi) the need for enhanced
   employment opportunities in the prospective location of the prospective
   economic development, film, or episodic television project; (vii) the total
   amount of state incentives received by the sponsor of the economic
   development, film, or episodic television project in the past; and (viii) a
   list of all other existing, nondiscretionary incentives for which the sponsor
   of the economic development, film, or episodic television project may qualify
   shall be provided to the staff of the House Committee on Appropriations and
   Senate Committee on Finance and Appropriations not less than five business
   days prior to the scheduled Commission meeting. Staff shall also be provided
   with an aggregate list of all discretionary incentives currently committed by
   the Commonwealth for the next 10 years, including anticipated requests for
   appropriations to satisfy such commitments during that time.
   				b. The timing of any request for an endorsement of a proposed individual
   incentive package should be scheduled so that the MEI Commission could, at its
   discretion, have up to seven days subsequent to the presentation of the
   incentive package prior to endorsing or rejecting such proposal.
   				c. State agencies, localities, authorities, or other political
   subdivisions of the Commonwealth that have significant involvement in a
   proposed individual incentive package in terms of providing facilities or
   regulatory support to a project or in developing the proposed individual
   incentive package shall review the materials required by subdivision 2 and
   certify the accuracy of such materials prior to consideration by the
   Commission.

B. An affirmative vote by four of the seven members of the Commission from the
House of Delegates and three of the five members of the Commission from the
Senate shall be required to endorse any incentive package, including but not
limited to packages offering tax incentives, for economic development, film, and
episodic television projects (including but not limited to MEI projects) for
which (i) one or more of the incentives in the incentive package is not
authorized under current law or an amendment by the General Assembly is being
sought to one or more currently existing incentives included as part of the
incentive package, (ii) one of the incentives being sought includes a cash
payment to a private sector business of more than $3.5 million from any fund
prior to any performance metrics being met by the proposed project, or (iii) the
aggregate amount of incentives to be provided by the Commonwealth in the
incentive package including discretionary grants, general or nongeneral funds,
proceeds from bonds, rights to lease property at below fair market value, or any
other incentives from the Commonwealth is in excess of $10 million in value.
Except for the value of any sales tax exemption available pursuant to
subdivision 18 of &#xA7; 58.1-609.3 or tax credit available pursuant to &#xA7;
58.1-439.12:03, the value of any existing nondiscretionary incentives shall not
be considered in calculating whether the incentives are in excess of $10 million
in value. Such vote shall also be required to endorse any economic development
project in which a business relocates or expands its operations in one or more
Virginia localities and simultaneously closes its operations or substantially
reduces the number of its employees in another Virginia locality if the
aggregate amount of incentives to be provided by the Commonwealth in the
incentive package including discretionary grants, general or nongeneral funds,
proceeds from bonds, rights to lease property at below fair market value, or any
other incentives from the Commonwealth is in excess of $2.5 million in value.
However, no vote shall be required for a project if the only incentives to be
provided to a potential project are nondiscretionary incentives available to any
qualified taxpayer under existing law.

HISTORY: 2009, cc. 246, 311; 2010, cc. 543, 716; 2013, c. 806; 2015, c. 761;
2017, c. 663; 2020, c. 830; 2023, c. 528.