Virginia Investment Partnership Grant
The Virginia Investment Partnership Grant (VIP) is a discretionary performance incentive designed to encourage continued capital investment by Virginia companies, resulting in added capacity, modernization, increased productivity, or the creation, development, and utilization of advanced technology.Discretionary , VEDP
The Virginia Investment Partnership Grant Program (VIP) is administered by the Virginia Economic Development Partnership (VEDP) and is governed by § 2.2–5101 of the Code of Virginia. The goal of the program is to encourage existing Virginia manufacturers or research and development services to continue to invest in Virginia and to provide stable employment opportunities by adding production capacity, utilizing state-of-the-art technology and modernizing assembly processes. This is a discretionary economic development incentive program in which grants are negotiated and offered to qualified applicants. The program uses the following metrics:
- A minimum $25 million in capital investment
- No net reduction in employment during the grant period
The Virginia Investment Partnership Act was enacted in 1999. This act established the Virginia Investment Partnership Grant Fund with two subfunds: the Major Eligible Manufacturer Grant subfund and the Investment Performance Grant subfund. These subfunds are now known as the Major Eligible Employer Grant subfund and the Investment Performance Grant subfund with an additional third subfund, the Economic Development Incentive Grant subfund. The original guidelines required eligible companies to have a legal residence of five years in Virginia. The VIP grant was not to be paid out until fourth year after the capital investment was completed, or the third year if in in a distressed community, and the total grant could not exceed $1.5 million. These standards have been relaxed to allow companies that have had a legal presence of three years to be eligible for the grant, the payout now occurs in the third year after capital investment has been completed or the second year if in a distressed community, and the maximum grant has been raised to $3 million with an additional $2 million available for special projects deemed meritorious of such a significant investment by the Commonwealth.
Celanese – In October 2012, Celanese Corporation, a global technology and specialty materials company, announced it will invest $150 million in its Giles County operation, creating 22 new jobs. Virginia competed against global locations for this investment. The company engineers and manufactures a wide variety of products included in end-use applications such as paints and coatings, textiles, automotive applications, consumer and medical applications, filter media, paper and packaging, chemical additives, construction and consumer applications and industrial adhesives. Celanese received a Governor’s Opportunity Fund grant of $500,000 and a $1.5 million grant from the Virginia Investment Partnership program.
IMS:GEAR – In December 2011, IMS:GEAR, one of the largest manufacturers of gear assemblies for the North American automotive market, announced it will invest $35.5 million and create 80 new jobs during the expansion of its operation in the City of Virginia Beach. Virginia successfully competed against Georgia for the project. Governor McDonnell approved a $300,000 performance-based grant from the Virginia Investment Partnership program and a $200,000 grant from the Governor’s Opportunity Fund to assist the City of Virginia Beach with the project. The company was also eligible for assistance from the Virginia Jobs Investment Program. As of the most recent survey data, the company has completed and maintained the investment and jobs announced.
Kraft Foods – In December 2012, Kraft Foods, North America’s fourth largest consumer packaged food and beverage company, announced plans to invest $25 million to increase production of its Capri Sun beverages and install new packaging technology at its facility in Frederick County. The project planned to create 25 jobs. The project was awarded a $250,000 performance-based grant from the Virginia Investment Partnership program. The company was also eligible for assistance from the Virginia Jobs Investment Program. The Kraft plant celebrated its 20-year anniversary in Frederick County in 2011. This is the third VIP grant that Kraft has been awarded for continued investment in its Frederick County facility.
Sabra – In April 2013, Sabra Dipping Company, the country’s leading hummus manufacturer, announced it will invest $86 million to further expand its manufacturing capacity in Chesterfield County, adding 140 new jobs. The expansion project received a $500,000 performance-based grant from the Virginia Investment Partnership Program. The Governor also approved a $350,000 Governor’s Opportunity Fund grant and the company was also eligible for funds from both the Virginia Enterprise Zone and Virginia Jobs Investment Programs. As of the latest survey, Sabra has met both the capital investment and job creation metrics announced.
WhiteWave – In April 2013, the WhiteWave Foods Company, a consumer packaged food and beverage company with the leading brands Silk, Horizon Organic, International Delight, and LAND O LAKES products, announced it will create 36 new jobs and invest $69.8 million to expand its operation in the town of Mount Crawford in Rockingham County. Virginia successfully competed against Texas for the project. The Governor approved an $800,000 grant from the Virginia Investment Partnership Program. The company was also eligible for assistance from the Virginia Jobs Investment Program. As of the latest survey data, WhiteWave has exceeded its goals, creating 64 new jobs and investing $84.5 million.