Bill Text: VA HB1457 | 2024 | Regular Session | Comm Sub
Bill Title: Virginia Investment Performance Grant; economic development incentive grants.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2024-04-05 - Governor: Acts of Assembly Chapter text (CHAP0563) [HB1457 Detail]
Download: Virginia-2024-HB1457-Comm_Sub.html
Be it enacted by the General Assembly of Virginia:
1. That §2.2-5101 of the Code of Virginia is amended and reenacted as follows:
§2.2-5101. Virginia Investment Performance Grants.
A. For purposes of this section:
"Aggregate amount of Grants payable" means the total amount of Grant money payable to all Grant recipients in any fiscal year pursuant to this section, including Grants awarded prior to July 1, 2024, and Grants awarded or on or after July 1, 2024.
"Grant" means a Virginia Investment Performance Grant awarded pursuant to this section and paid from the Investment Performance Grant subfund of the Fund.
B. Subject to the appropriation by the General Assembly
of sufficient moneys to the Investment Performance Grant subfund, any eligible
manufacturer or research and development service that is not eligible for a
major eligible employer grant under §2.2-5102 shall be eligible to apply
for an investment performance grant as provided in this section a Grant.
B. C. The Partnership shall establish an
application process by which eligible manufacturers and research and
development services may apply for a grant under this section Grant.
An application for a grant Grant under this section shall not be
approved until the Partnership has verified that the required capital
investment has been completed.
C. D. The amount of the investment
performance grant Grant that an eligible manufacturer or research
and development service shall be eligible to receive under this section
shall be determined by the Secretary, based on the recommendation of the
Partnership, and contingent upon approval by the Governor. The determination of
the appropriate amount of an investment performance grant a Grant
shall be based on the application of guidelines that establish criteria
for correlating the amount of a grant Grant to the relative value
to the Commonwealth of the eligible investment.
D. E. The Partnership shall assist the Secretary
in developing objective guidelines that shall be used in awarding investment
performance grants to be used in awarding Grants. No grant
Grant shall be awarded until the Secretary has provided copies of such
guidelines for review to the Chairmen of the House Committee on Appropriations
and the Senate Committee on Finance and Appropriations. The preparation of the
guidelines shall be exempt from the requirements of Article 2 (§2.2-4006 et
seq.) of the Administrative Process Act. The guidelines shall require
determinations regarding the amount of investment performance grants
Grants to address:
1. The number of new jobs created by the capital investment;
2. The wages paid for the new jobs and the amount by which wages exceed the average manufacturing wage for the locality or region;
3. The extent to which the capital investment produces (i) measurable increases in capacity, productivity, or both; (ii) measurable decreases in the production of flawed product; or (iii) measurable advances in knowledge, research, or the application of research findings for the creation of new or significantly improved products or processes that support manufacturing;
4. The amount of the capital investment;
5. The net present value of benefits to Virginia;
6. The amount of other incentives offered by the Commonwealth and the locality; and
7. The importance of the manufacturing or research and development facility to the economy of the locality or region.
The guidelines shall also address the eligibility of
manufacturers or research and development services that make a capital investment
in phases over a period of years, and limits on eligibility for multiple
grants Grants by the same manufacturer or research and development
service within stated periods of time.
E. The amount of an investment performance grant to any
eligible manufacturer under this section shall not exceed $3 million or 10
percent of the amount appropriated by the General Assembly to the Investment
Performance Grant subfund in the year that the terms of a grant are determined.
For all eligible projects awarded grants on or after July 1, 2005, and before
July 1, 2009, the amount of an investment performance grant to any recipient
under this section shall not exceed $1.5 million. For eligible projects awarded
grants on or after July 1, 2009, the amount of an investment performance grant
to any recipient under this section shall not exceed $3 million, except for
eligible projects that demonstrate extraordinary characteristics described in
guidelines implementing this chapter the amount of an investment performance
grant to any such recipient under this section shall not exceed $5 million.
F. For all eligible projects awarded grants before July 1,
2005, the aggregate amount of investment performance grants approved under this
section in any year shall not exceed $6 million, and the aggregate amount of
grants outstanding to all eligible manufacturers under this section for all
years shall at no time exceed $30 million. For all such grants awarded prior to
that date, the annual obligations of the Commonwealth to make grant payments to
individual eligible manufacturers under this section shall not exceed $600,000.
For all eligible projects awarded grants on or after July 1, 2005, and before
July 1, 2009, the aggregate amount of investment performance grants approved
under this section in any year shall not exceed $3 million, and the aggregate
amount of such grants awarded after that date and outstanding at any time shall
not exceed $15 million. For all such grants awarded on or after that date, the
annual obligations of the Commonwealth to make grant payments to individual
recipients under this section shall not exceed $300,000. For all eligible
projects awarded grants on or after July 1, 2009, and before July 1, 2015, the
aggregate amount of investment performance grants approved under this section
in any year shall not exceed $6 million, and the aggregate amount of such
grants awarded on or after July 1, 2009, and before July 1, 2015, and
outstanding at any time shall not exceed $30 million. For all such grants
awarded on or after July 1, 2009, and before July 1, 2015, the annual
obligations of the Commonwealth to make grant payments to individual recipients
under this section shall not exceed $1 million. For all eligible projects
awarded grants on or after July 1, 2015, but before July 1, 2019, the aggregate
amount of investment performance grants approved under this section in any year
shall not exceed $6 million, and the aggregate amount of such grants awarded on
or after July 1, 2015, but before July 1, 2019, and outstanding at any time
shall not exceed $20 million. For all such grants awarded on or after July 1,
2015, but before July 1, 2019, the annual obligations of the Commonwealth to
make grant payments to individual recipients under this section shall not
exceed $1 million. For all eligible projects awarded grants on or after July 1,
2019, the aggregate amount of investment performance grants approved under this
section in any year shall not exceed $4 million, and the aggregate amount of
such grants awarded on or after July 1, 2019, and outstanding at any time shall
not exceed $20 million. For all such grants awarded on or after July 1, 2019,
the annual obligations of the Commonwealth to make grant payments to individual
recipients under this section shall not exceed $1 million. At no time
shall the aggregate amount of Grants payable to all Grant recipients in any
fiscal year exceed $6 million.
G. Any eligible manufacturer or research and development
service shall be eligible to receive a grant from the Fund Grant
in five equal, annual installments beginning in the third
first year after the completion and verification of the capital
investment and any pledged job creation requirements is are
completed and the Partnership has verified that the requirements applicable
to such grant have been satisfied. Any eligible manufacturer or research and
development service located in a fiscally distressed area of the State, as
defined in the guidelines implementing this chapter, shall be eligible to begin
receiving grants in the second year after the capital investment is completed
and verified. No Grant awarded pursuant to this section to an eligible
manufacturer or research and development service shall exceed $5 million in
total across all fiscal years, and no annual payment to any eligible
manufacturer or research and development service shall exceed $1 million.
2. That the provisions of this act shall not impact the obligations of the Commonwealth under any existing agreements for the payment of grants under §2.2-5101 of the Code of Virginia that were entered into prior to the effective date of this act. However, such obligations under existing agreements entered into prior to the effective date of this act shall be included in calculating the aggregate amount of Grants that may be payable in any fiscal year pursuant to subsection F of §2.2-5101 of the Code of Virginia, as amended by this act.
