Major Business Facility Job Tax Credit, Department of Taxation (November 1, 2025)

Summary

This November 1, 2025 letter from the Department of Taxation to the chairs of the Senate Finance and Appropriations Committee, the House Appropriations Committee and the House Finance Committee is the annual report on the Major Business Facility Job Tax Credit for Taxable Year 2023. It states that the Department issued a total of $7,163,000 in Major Business Facility Tax Credits to taxpayers for Taxable Year 2023, accounting for 14,326 qualified full-time employees, for facilities in five different localities with four different NAICS codes. It also states that the credit amount is $1,000 per new job created in excess of the qualifying threshold amount, generally 50 new jobs. The letter closes with the title Tax Commissioner.

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                 COMMONWEALTH of VIRGINIA
                                  Departme11t ofTa.xatio11

                                     November 1, 2025


The Honorable L. Louise Lucas
Chairwoman, Senate Finance and Appropriations Committee

The Honorable Luke E. Torian
Chairman, House Appropriations Committee

The Honorable Vivian E. Watts
Chairwoman, House Finance Committee


Dear Chair Lucas, Chair Torian, and Chair Watts,

        During the 2019 Session, the General Assembly enacted House Bill 2003 (Chapter
699 of the Acts of Assembly), which required the Department of Taxation ("the Department")
to publish an annual report regarding the Major Business Facility Job Tax Credit. This report
must include the location of sites used for major business facilities for which a credit was
claimed; the North American Industry Classification System ("NAICS") codes used for the
major business facilities for which a credit was claimed; the number of qualified full-time
employees for whom a credit was claimed; and the total cost to the Commonwealth's
General Fund of the credits claimed. The report is to be published for taxable years
beginning on or after January 1, 2019, and must include information for the 12-month period
ending on the preceding December 31. The Department is publishing this report to provide
data pertaining to Taxable Year 2023 Major Business Facility Job Tax Credits.

Background Regarding the Major Business Facility Job Tax Credit

       Under Va. Code § 58.1-439, Virginia allows individuals, estates, trusts and
corporations to claim the Major Business Facility Job Tax Credit against their Virginia
income tax. Taxpayers may also apply these credits against their Virginia bank franchise tax
and certain license taxes. The credit is available to businesses that establish a new facility,
or expand an existing facility in Virginia. The credit amount is $1,000 per new job created in
excess of the qualifying threshold amount. The threshold amount is generally 50 new jobs,
but may be lowered to 25 new jobs if the new jobs are located in designated Enterprise
Major Business Facility Job Tax Credit Report
November 1, 2025
Page2


Zones, or areas the Virginia Economic Development Authority has identified as
economically distressed. The credit is earned over a two-year period and the employment
level must be maintained for a minimum of six years. The amount of credit allowed cannot
exceed the tax imposed in any taxable year. Any credit not used in the taxable year the
credit was allowed may be carried forward for the next ten succeeding taxable years.

Information Regarding Taxable Year 2023 Credits

       The Department issued a total of $7,163,000 in Major Business Facility Tax Credits
to taxpayers for Taxable Year 2023. Because the credit is issued for a two-year period
beginning with the year after the establishment or expansion of a major business facility,
this amount includes credits for major business facilities established or expanded during
Taxable Years 2021 and 2022.

         The credits issued for Taxable Year 2023 accounted for 14,326 qualified full-time
employees. The credit was issued to facilities located in five different localities, and by
facilities with four different NAICS codes, as shown below:

              Taxable Year 2023 Major Business Facility Job Tax Credits
          Locations                               NAICS Codes
                                 Drugs and Druggists' Sundries Merchant Wholesalers
                                 (424210)

                                 Other Mis. Nondurable Goods Merchant Wholesalers
                                 (424990)

                                 All Other Miscellaneous Retailers
                                 (459990)
The city of Norfolk and the
counties of Chesterfield,        Software Publishers
Fairfax, Henrico and             (511210)
Goochland
                                 Data Processing, Hosting, and Related Services
                                 (518120)

                                 Management, Scientific, and Technical Consulting Services
                                 (541600)

                                 Telemarketing Bureaus and Other Contact Centers
                                 (561422)

       The General Fund revenue impact of the Major Business Facility Tax Credit for
credits claimed on Taxable Year 2023 returns processed during Calendar Year 2024 was
$387,500. This amount includes the amount of credit issued by the Department for Taxable
Year 2023 and also includes amounts carried over from prior taxable years under the Major
Business Facility Tax Credit's ten-year carryover. It does not include credits issued for
Major Business Facility Job Tax Credit Report
November 1, 2025
Page3


Taxable Year 2023 that could not be applied against tax liability on the Taxable Year 2023
return and, therefore, will be carried over to future taxable years. It also does not include
credits claimed on returns processed after Calendar Year 2024.

       Please contact me if you have any questions.

                                   Sincerely,




                                   Tax Commissio er
                                   Commonwealth of Virginia


c: The Honorable Stephen E. Cummings, Secretary of Finance
   Kristin Collins, Deputy Tax Commissioner


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