                                 CODE OF VIRGINIA

ELIGIBILITY OF COMPANIES FOR APPORTIONMENT MODIFICATION; CERTIFICATION BY THE
VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP AUTHORITY (§ 58.1-405.1)

A. For purposes of this section:
			&#8220;Authority&#8221; means the Virginia Economic Development Partnership
Authority.
			&#8220;Eligible company&#8221; means a corporation or pass-through entity, as
defined in &#xA7; 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.
			&#8220;New capital investment&#8221; 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.
			&#8220;New job&#8221; 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 (&#xA7; 40.1-28.8 et seq.), and that requires a
minimum of (i) 35 hours of an employee&#8217;s time a week for the entire normal
year of the eligible company&#8217;s operations, which normal year shall consist
of at least 48 weeks, or (ii) 1,680 hours per year.
			&#8220;Qualified development site&#8221; 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. &#8220;Qualified development site&#8221; does not include
real property that is not owned by the Commonwealth or a political subdivision
thereof.
			&#8220;Qualified locality&#8221; 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. &#8220;Qualified locality&#8221; includes a qualified development
site.
			&#8220;Traded-sector company&#8221; means a company that directly or
indirectly derives more than 50 percent of its revenue from out-of-state
sources.

B. 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.

   2. 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.

   3. 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.

C. Any eligible company may elect to apportion its income pursuant to the
provisions of &#xA7; 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 &#xA7; 58.1-405.

HISTORY: 2018, cc. 801, 802; 2019, cc. 262, 263.