Evaluation: Economic development incentives
JLARC is responsible for evaluating the state’s economic development incentives — grants, tax credits, sales tax exemptions, and other incentives. (The Virginia General Assembly authorizes these evaluations through continuing language in the Appropriation Act.)
JLARC staff evaluate spending on incentives; achievement of required business activity in return for incentives; economic benefits to Virginia of total spending on incentives; and effectiveness of incentives in influencing business activity.
Staff are evaluating the following incentives in 2022:
Research and Development Exemption
Research and Development Expenses Tax Credit
Qualified Equity and Subordinated Debt Investment Tax Credit
CIT GAP Fund
Commonwealth Research Commercialization Fund
Major Research and Development Tax Credit
Virginia Spaceport Users Exemption
Qualified Business Long-Term Capital Gain Subtraction
Venture Capital Income Tax Subtraction
Zero G Zero Tax Act Subtractions