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. 

Click here for a summary of prior evaluation results and evaluation methodology.

 

Jun 2025	Workforce and Industry Incentives Online-only appendixes Appendix H: Economic impact analysis Appendix I: Economic and revenue impact analyses Appendix J: References
Nov 2024	Economic Development Incentives 2024 Appendix C: All custom incentive grants reviewed to date
Jun 2024	Custom Incentive Grants | Presentation Online-only appendixes Appendix K: Regression analysis of grant awards Appendix L: Economic impact modeling Appendix M:Results of economic and revenue impact analyses Appendix N: References
Nov 2023	Economic Development Incentives 2023 | Presentation
Sept 2023	Business Location and Expansion Incentives | Presentation
Dec 2022	Economic Development Incentives 2022 | Presentation Online appendixes
June 2022	Science and Technology Incentives | Presentation Online-only appendixes Appendix E: R&D Tax Credits by locality Appendix F: R&D Tax Credits by state Appendix G: Angel investment Tax Credits by locality Appendix H: Incentives for private investors of startups by state Appendix I: GAP funds and CRCF incentives by locality Appendix J: State investment fund and commercialization programs for startups Appendix K: State space incentives Appendix L: Economic impact modeling Appendix M:Results of economic and revenue impact analyses Appendix N: Peer reviewed research Appendix O: References
Nov 2021	Economic Development Incentives 2021: Spending and Performance | Presentation
June 2021	Trade and Transportation Incentives | Presentation Supplemental (online only) appendixes Appendix M: Economic impact modeling Appendix N: Results of economic and revenue impact analyses Appendix O: References
Dec 2020	Economic Development Incentives: 2020 | Presentation
Sept 2020	Infrastructure and Regional Incentives | Presentation Supplemental appendixes (online only) Appendix O: Statistical analysis and economic impact modeling Appendix P: Results of economic and revenue impact analyses Appendix Q: Findings of peer-reviewed research Appendix R: References
Dec 2019	Economic Development Incentives: 2019 | Presentation
June 2019	Data Center and Manufacturing Incentives | Presentation Supplemental appendixes (online only) Appendix M: Statistical analysis and economic impact modeling Appendix N: REMI results Appendix O: Findings of peer-review research Appendix P: References
Dec 2018	Economic Development Incentives: 2018
Jul 2018	Workforce and Small Business Incentives Supplemental appendixes (online only) Appendix K: Quasi experimental statistical analysis and economic impact modeling Appendix L: Results of economic and revenue impact analyses Appendix M: Findings of peer-reviewed research Appendix N: References
Nov 2017	Film Incentives Economic Development Incentives: 2017

Economic benefits and return in revenue for Virginia’s economic development incentives:

Economic development incentives vary in their economic benefit and return in revenue to the state. JLARC staff have categorized incentives as having a negligible, low, moderate, or high economic benefit and return in revenue based on in-depth evaluations of the incentives (Table). Grants tend to generate moderate or relatively high economic benefits and returns in revenue, and tax incentives tend to generate low or negligible economic benefits and returns in revenue. Grant programs have higher economic benefits than other types of incentives because a higher percentage of grant funding is directed to corporate headquarters or businesses in manufacturing industries, which generally have high economic multipliers and pay higher wages. In addition, businesses that receive grants must agree to create jobs and make capital investments, and they often exceed their job creation and capital investment goals. Other incentives may not have similar requirements for businesses to receive an award.

As of 2025, JLARC has evaluated most of the state’s economic development incentives. The following incentives have not been evaluated yet but will be evaluated over the next several years. Incentives previously evaluated by JLARC may be reviewed again if they have changed significantly, there is new or improved outcomes data, or there are changes to the state economy.

 

• Governor’s New Airline Service Incentive Fund
• Media Provider Equipment Exemption
• Tourism Development Financing Program