Virginia Tax Incentives and Rates Drive Success in Fairfax County

Fairfax County has a fair and competitive tax structure and a strong commercial tax base that helps support a high quality of life. It’s not enough that businesses want to come to the region. We want them to stay.

The Commonwealth of Virginia has not raised its 6 percent corporate income tax rate since 1972. Be sure to download the FCEDA’s fact sheet full of Fairfax County tax information to get started. Virginia tax incentive programs are designed to attract—and keep—businesses here. This includes the use of a low real property tax rate, new green job tax credits, enterprise zone act credits, and more. 

The FCEDA is here to connect you with information on tax credits, tax exemption, tax liability, and other benefits so you can have an exceptional fiscal year. 

The Virginia Jobs Investment Program (VJIP) is an economic development incentive that supports job creation and investment in the Commonwealth by offsetting recruiting and training costs for new and expanding companies by using tax incentives and other methods. Eligibility is limited to growth by qualified companies in these sectors: corporate headquarters, distribution centers, information technology, manufacturing, research and development, and shared service centers. 

VJIP consists of three initiatives: 

• The New Jobs Program focuses on expansions of existing companies or new facility locations. 
• The Small Business New Jobs Program is designed specifically for Virginia companies that have 250 employees or fewer company-wide. 
• The Retraining Program is limited to projects by for-profit companies in the manufacturing and distribution center sectors. This program provides services and funding to help them upgrade the skills of their existing employees. 

Other Virginia programs include resources from the Office of the Governor for qualifying companies in Virginia based on criteria established by state legislation to promote the creation of new jobs and investment. These programs are usually used for activities such as transportation access, infrastructure improvements or other site-related developments. 

Fairfax Incentives

In 2020, Fairfax County has set up its Economic Incentive Program (EIP) to offer advantages to companies who develop property in certain parts of the county. The EIP ensures that every corner of Fairfax County benefits from the boom in businesses moving into the region. Benefits include a reduction of site plan fees and a partial abatement of real estate taxes. 

Another credit opportunity is the Virginia Land Preservation Tax Credit program, through which one can receive an income tax credit for 40% of the value of donated land.  

Contact us to learn more about Virginia tax credits and the state tax. There are a variety of grant programs that can possibly help you with your taxable year expenditures and premiums. The Virginia department of taxation, located in Richmond, can help taxpayers and business facilities with questions regarding sales tax, income tax credit, income tax returns, and other questions. Whether you are a business or a Virginia taxpayer with questions on the Virginia income tax, we have a resource for you.