March 27, 2009
Contact: Gordon Hickey
(804) 225-4260
www.governor.virginia.gov www.YesVirginia.org
GOVERNOR KAINE ANNOUNCES ACTION ON SIGNATURE ECONOMIC DEVELOPMENT LEGISLATIVE INITIATIVES
~ Actions meet existing commitments, ensure future economic success~
Governor Timothy M. Kaine today announced that he has signed several pieces of legislation that advance his economic development initiatives, and were part of his 2009 legislative package. These significant pieces of bipartisan legislation will assist the Commonwealth in meeting commitments to its private sector partners and provide Virginia with innovative tools to attract future high paying jobs to all parts of the state.
“During this difficult economic time it’s important that we are equipped with the right tools to keep Virginia competitive in the global marketplace,” said Governor Kaine. “Virginia is recognized around the world as a great place to do business, and I am pleased to enact this legislation that will fulfill our current obligations and position us for even greater successes in the future.”
Governor Kaine won passage of the Major Employment and Investment Act (HB 2550/SB 1119; Cox/Colgan), which will enable the Commonwealth to compete for large, potentially transformative, economic development projects by allowing for the financing of qualifying projects through the Virginia Public Building Authority and the Virginia Resources Authority. To qualify as a Major Employment and Investment Project, projects must have a substantial regional economic impact, create at least 400 full-time jobs, and include a capital investment of at least $250 million. The Major Employment and Investment Act was a recommendation of Governor Kaine’s Advisory Committee on Mega Projects.
Virginia’s marquee incentive program, the Virginia Investment Partnership Grant Program (HB 2442/SB 1089; BaCote/J. Miller), received a significant increase of capacity. The program is designed for expansions and consolidations of existing Virginia businesses and the passage of this legislation ensures that the Commonwealth meets its commitment to the joint venture of AREVA and Northrop Grumman Shipbuilding, announced by Governor Kaine in October 2008, that is expected to result in a new capital investment of $363.4 million and create at least 540 new jobs.
By amending the existing eligibility requirements, the Virginia Economic Development Incentive Grant (VEDIG) Program (HB 2673/SB 1548; Putney/Colgan) will be able to offer incentives to more companies locating significant headquarters, administrative, research and development, or similar operations in Virginia, creating new jobs and investing in the Commonwealth. The VEDIG program was a critical component in the recent recruitment of Hilton Hotels Corporation to Virginia, announced by Governor Kaine in February. The Hilton relocation will bring a $17 million investment and at least 300 jobs to Fairfax County.
The Major Business Facilities Jobs Tax Credit Program (HB 2575; Putney) has proven to be an extremely effective tool in business recruitment. Governor Kaine sought, and the General Assembly approved, a ten year extension of this effective, performance-based incentive that encourages job growth by major Virginia employers. The tax credit allows eligible businesses to claim a $1,000 per job tax credit for each job created over a specified threshold number. To create a temporary stimulus effect, the credit can be claimed over two years through 2010, and will then return to being claimed over three years.
In December 2008, Governor Kaine announced that Continental AG would expand its Virginia facilities, creating 318 new jobs, saving 500 Virginia jobs, and investing $194 million. A budget amendment will establish the Continental AG Workforce Training Program, providing $1.5 million to help develop the necessary workforce for this expansion, and fulfilling a commitment made by the Commonwealth to an important existing business.
