SB 1418 (McPike) amends an economic development incentive program known as the Commonwealth’s Development Opportunity Fund (CDOF) by allowing “new teleworking jobs” to qualify towards the minimum job creation requirements in order to receive a cash grant to offset a qualifying project’s related costs, such as site acquisition and development, transportation access, utility extension or capacity development, construction or build-out of buildings, or training. CDOF grants are awarded to local governments on the behalf of the company. For a company to receive a grant award it must enter into performance agreement with the locality. To qualify the new job must be “… held by a Virginia resident, for which the majority of the work is performed remotely, and that pays at least 1.2 times the Virginia minimum wage, as provided by the Virginia Minimum Wage Act.”
VACo supports the flexibility being proposed as it reflects a growing trend in working from home and/or satellite offices, while providing an appropriate incentive to attract economic development prospects and the expansion of existing industry. SB 1418 passed the Senate by unanimous vote and will be considered by the House General Laws Committee during the extended special session.
VACo Contact: Joe Lerch, AICP