Taxes & Incentives
We understand that decisions to make large capital investments and create jobs can be complex and risky. Getting all the details to fall into place can be challenging, which is why AEDP offers a variety of programs to help companies locate and expand in our prime location so they can access top talent and grow in a supportive business environment. In addition to our highly competitive tax structure, we leverage state and local programs to provide financial assistance to new and growing businesses.
Local Programs
Decisions to provide financial and other support to businesses are considered on a case-by-case basis and are analyzed using a variety of factors specific to the company and project outcomes. The type and level of support is tailored to ensure maximum benefit for the company and Alexandria. All projects require the execution of a Performance Agreement with specific performance milestones that are monitored by AEDP.
Alexandria Investment Fund (AIF)
- A locally funded discretionary program that provides grants: 1) to be used to provide the local match for state incentive programs; 2) for projects that fill or cause to be constructed office and hotel buildings in the City; and 3) to incent the attraction or expansion of businesses that result in significant tax revenue for the City resulting from capital investment. Grant amounts depend on factors such as real estate impact, capital investment, and job creation.
- To download the below example of incentives granted by the Alexandria Investment Fund, please visit this page.
Local Tax & Fee abatements & Reductions
The City of Alexandria has the authority to abate or reduce certain taxes and fees to spur economic development.
Tax Exempt Bond Financing
Below market bond financing of capital projects is available for qualified businesses and organizations seeking to invest in Alexandria. For more information about the Industrial Development Authority, please visit its page.
Infrastructure Investments
If changes to the built environment are required to support business and real estate development projects, targeted infrastructure investments may be available through the City of Alexandria’s Capital Improvement Program.
State Programs
Virginia offers a variety of programs to support new and expanding businesses. From performance-based grants to tax credits, these programs are designed to target the needs of the company by investing in those who invest in Virginia. AEDP often leverages state programs including but not limited to the following.
Agriculture & Forestry Industries Development Fund (AFID)
Provides grants to businesses such as breweries and cideries that add value to Virginia-grown agriculture and forestry products.
Commonwealth’s Development Opportunity Fund (COF)
Provides deal-closing grants to secure a company location or expansion in Virginia.
Virginia Economic Development Incentive Grant (VEDIG)
Provides grants to companies that invest and create new jobs by locating significant headquarters, administrative or service sector operations in Virginia.
Major Eligible Employer Grant Program (MME)
Provides grants to companies that make investments and provide a significant number of stable jobs through a large expansion or new operation.
Virginia Talent Accelerator Program
Provides customized training and recruitment solutions at no cost to qualified new and expanding businesses that are creating jobs.
Virginia Jobs Investment Program (VJIP)
Provides services and funding to companies creating new jobs or implementing technology changes to reduce human resources costs.
Major Business Facility Job Tax Credit
Offers $1,000 income tax credit for each new full-time job created by companies locating and expanding in Virginia.
Major R&D Expenses Tax Credit
Offers individual and corporate income tax credit for incurring more than $5 million in R&D expenses.
For more information about the above programs and more, please visit the Virginia Economic Development Partnership.