Virginia Chamber of Commerce
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Chamber Briefings 
November 2015
Upcoming Events

December 2, 2015
Northern VA Community College


December 4, 2015
9:00 am- 2:00 pm
Williamsburg Lodge


State of the Commonwealth Regional Rollout Events:
December 9, 2015
7:30 - 9:00 a.m.
The Patrick Henry Ballroom
611 S Jefferson St #6b, Roanoke, VA 24011

December 10, 2015
7:30 - 9:00 a.m.
LMI - Headquarters
7940 Jones Branch Drive, Tysons, VA 22102

December 16, 2015
7:30 - 9:30 a.m.
Liberty University Williams Stadium, Club Level (3rd floor)
1971 University Boulevard, Lynchburg, VA  24515

 
January 8, 2016
noon-2:00 p.m.
Greater Richmond Convention Center


SAVE THE DATE!
Chamber Day at the Capitol &
Old Dominion Assembly
January 27, 2016
Member News
President's Message

Barry DuVal
We hope that you will make plans to join us on December 4th in Williamsburg for the Virginia Economic Summit. We will be presenting the inaugural "State of the Commonwealth Report," and will also hear remarks by Senator Tim Kaine, a panel of Virginia executives and more. More information on the Summit can be found below--click here to register.

On Wednesday, November 18th, we hosted over 170 business leaders on Capitol Hill at the Virginia Congressional Luncheon where we heard from members of Virginia's Congressional delegation including Senators Warner and Kaine and Reps. Bobby Scott, Rob Wittman, Don Beyer and Barbara Comstock. We expressed the businesses community's need for help from Washington on energy policy, trade, transportation, regulatory reform, tax reform and workforce training. To view video highlights from the Congressional Luncheon, click here.

On behalf of everyone at the Virginia Chamber, we send our best wishes for a wonderful Thanksgiving holiday.


VIRGINIA ECONOMIC SUMMIT
December 4, 2015
The Williamsburg Lodge
9:00 a.m.-2:00 p.m.

Program Highlights:


A Panel of Virginia Executives
Moderator
Calvin "Woody" Fowler, Jr.
President & CEO
Williams Mullen
Panelist:
Steve Voorhees
CEO
WestRock
Panelist:
Suzy Kelly
CEO
Jo-Kell Inc
.
Panelist:
Shawn Boyer
Founder
Snagajob




A Special Appearance by the First President of the United States, George Washington! 

Presentation of the "State of the Commonwealth" Report

The inaugural "State of the Commonwealth" report led by Dr. James V. Koch, Board of Visitors Professor of Economics and President Emeritus in the Strome College of Business at Old Dominion University, analyzes the Virginia economy and assesses its future progress.  The report includes chapters that focus on economic headwinds for Virginia, defense spending, Virginia's airports, small businesses, finding efficiencies in city and county services, and trends in migration. 


Other Program Highlights:
Featured Speaker

Senator Tim Kaine
  • A policy briefing on the federal 2015 Jobs, Growth, and Opportunity Agenda from Dr. J.D. Foster, Deputy Chief Economist at the U.S. Chamber of Commerce
  • The presentation of a special award recognizing the 10th Anniversary of LEAD Virginia

THANK YOU TO OUR SPONSORS!
Presenting Sponsor
Platinum Sponsor
Presenting Law Firm Sponsor
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Update on Virginia's State Rankings
Since our last update, the final three of the annual state rankings reports that we track have been released--Forbes, Site Selection and Pollina Corporate Real Estate. More details on each of these recently released reports can be found below.

Here is where Virginia stands in each of the major rankings, and how we've done in the past:
In 2010, we were in the top five of every major business climate ranking. This year, more than half of them rank us outside the top ten. More businesses are closing than opening in Virginia today. This drop is not an aberration caused by any one factor--it's a long-term trend.

We believe that we can reverse this trend by implementing the long-term, pro-growth policies in Blueprint Virginia.
Virginia Drops to 7th in Forbes Best States for Business Ranking
Late last month, Forbes released its annual Best States for Business rankings. Virginia fell to 7th this year after ranking 4th in 2014 and either 1st or 2nd in the previous 8 years. According to Forbes:

"Virginia's rank falls three spots thanks to higher business costs and a declining economic climate. The state ranked among the top two states every year from 2006 through 2013. Virginia still ranks at the head of the regulatory category because of its strong incentive offerings and business-friendly government policies."

The breakdown of Virginia's rankings is as follows:
For the full list of the 2015 Best States for Business, click here.
Virginia Falls to 12th in Site Selection Rankings

Site Selection Magazine has released its 2015 Top State Business Climate Rankings, and for the first time since 2006, Virginia ranks outside of the top ten.

Fifty percent of the overall Business Climate Ranking is based on a survey of corporate site selectors who are asked to rank the states based on their recent experience of locating facilities in them. In the CEO survey, Virginia dropped from 5th in 2014 to 15th in 2015.

The other 50 percent is based on an index of seven criteria: performance in Site Selection's annual Competitiveness ranking; total New Plant Database compliant facilities in 2014; total new facilities in 2014 per capita; total 2015 new projects year to date; total 2015 projects year to date per capita; state tax burdens on mature firms and on new firms according to the Tax Foundation and KPMG Location Matters analysis.

Pollina Corporate Real Estate Ranks VA 4th in Top 10 Pro-Business States

Pollina Corporate Real Estate released its 12th annual Top 10 Pro-Business States report this month, ranking Virginia 4th for the third year in a row.

Pollina evaluates and ranks states based on 32 factors controlled by state government, including taxes, human resources, education, Right-to-Work legislation, energy costs, infrastructure spending, regulatory environment, workers compensation laws, economic incentive programs, and state economic development efforts.

The top 10 states in Pollina's 2015 rankings were:


To view and download the full report, click here.
Interested in International Expansion? Take Advantage of VITAL!
The Virginia Chamber is proud to partner with the Virginia Economic Development Partnership on VITAL, the Virginia International Trade Alliance. As a VITAL partner, our member companies have access to steeply discounted rates for international market research as well as international trade shows and international trade missions facilitated through VEDP. 
 

Click below for more information:

If you or a company that you work with is interested in learning more about VITAL, please contact Samantha Quig, Deputy Director of Communications, at s.quig@vachamber.com or 804-237-1457.
Election Night Summary

Senate - 21 Republican/19 Democratic
House - 66 Republican/34 Democratic

This year's election was like a game of tug of war in which great effort was exerted on both sides only to see the ribbon in the middle of the rope remain unmoved.  While there were many hard fought races, the cumulative results for party control had little to no change.  

Not one incumbent in the Senate or House lost, and only three total seats (all in the House) switched parties. The Senate remains a 21-19 Republican majority and the House is a now 66-34 Republican majority.
 
While the balance of power numbers did not shift much, there were many lessons learned throughout the individual districts that will be studied for upcoming elections.

Ryan L. Dunn
Executive Vice President of Corporate and Government Affairs  

Nominations Currently Being Accepted for Virginia Chamber Board of Directors

As a business leader in your community and a member of the Virginia Chamber of Commerce, you can be most helpful in identifying businessmen and women for possible service on the Chamber's Board of Directors. We are seeking individuals with a proven record of community service and leadership ability and who would have a commitment to preserving a positive business climate in Virginia on a statewide basis.
To make recommendations, please write to:
Mr. Gary Thomson
Chairman, Nominating Committee
Virginia Chamber of Commerce
919 East Main Street, Suite 900
Richmond, VA 23219
ATTENTION: Maryann Crowder, VP of Chamber Operations
 
or email Maryann at m.crowder@vachamber.com and identify your nominee(s) and attach a current bio. Please note our mailing address above.

Your letter must be received by Tuesday, December 1, 2015.
Recent Supreme Court of Virginia Decisions Demonstrate the Urgent Need for New Tax Regulations

The January 2015 Supreme Court of Virginia opinion in The Nielsen Company LLC v. County Board of Arlington County sent two important messages to state and local governments in Virginia. First, local governments should permit taxpayers to use an estimation methodology when determining a deduction for gross receipts taxed in other states for purposes of the business, professional, and occupational license (BPOL) tax if it is impossible to determine the exact amount of the deduction. Second, the state government, specifically, the Virginia Department of Taxation needs to reconsider its current policy of issuing guidelines and public documents instead of regulations in an effort to meaningfully promote taxpayer compliance and minimize tax controversy disputes.
 
To read the rest of the article written by the Chair of the Virginia Chamber's Tax Institute, Craig Bell, and Christian Tennant, both of McGuireWoods, click here.
Study on Corporate Tax Rates and Income Shifting Suggest Lower Tax Rates Could Increase Revenue
The Tax Foundation recently released a report on multinational corporations' "profit shifting" from the U.S. to countries with a lower tax burden as a result of high corporate income tax rates. Some studies have estimated that the U.S. overall corporate tax revenue has been reduced by 35% because of high rates. This has resulted in some lawmakers calling for stricter tax avoidance policies for multinational corporations. The Tax Foundation study suggests that lowering corporate income tax rates would result in less income shifting and greater corporate tax revenue as multinational corporations would claim a greater portion of their income in the U.S. The model used to make these determinations estimates that due to income shifting, a reduction in the corporate tax rate in the U.S. to 25% would result in the same amount of corporate tax revenue as the current 35% rate.
EPA's Clean Power Plan would hike electrical rates over 20% in Virginia
 
According to a study from NERA Economic Consulting, the costs associated with the EPA's Clean Power Plan (CPP) will be significantly higher than the EPA's estimates by the time the CPP is fully effective.  The study found that all 47 states subject to the regulation could see higher electricity prices.  During such peak usage, NERA projects 41 states could have double-digit increases in electricity prices, with 28 states -- including Virginia -- seeing price increases exceeding 20%.  The CPP has led 27 states to file a federal lawsuit, claiming the plan exceeds EPA's authority and will cost utility payers too much.

To view the full study, please click here.


Map from America's Coalition for Clean Coal Electricity
Commonwealth Research Commercialization Fund (CRCF) Now Accepting Applications for FY2016 Funding

The Commonwealth Research Commercialization Fund (CRCF) advances science- and technology-based research, development, and commercialization to drive economic growth in Virginia, create and foster high-potential technology companies in the Commonwealth, and to encourage and strengthen collaboration and partnerships between the public and private sector.

$3.4 million is available to award during the single FY2016 solicitation.

Applications submitted under any of the FY2016 solicitation programs must align with one or more of the following technology sectors:
  • Cyber Security
  • Energy
  • Information Technology, specifically data analytics
  • Life Sciences
  • Unmanned Systems, for air, ground, sea, or space
When submitting an application, applicants may choose a relevant secondary technology sector from 11 industries drawn from the Commonwealth Research and Technology Strategic Roadmap.

For more information on the CRCF, please click here.
State of the Commonwealth--Regional Rollout Events


Following the release of the "State of the Commonwealth" report at the Virginia Economic Summit on December 4th, we will be holding regional rollout events across the commonwealth.


Currently scheduled regional rollouts include:

December 9th - Roanoke Rollout
7:30 - 9:00 a.m.
The Patrick Henry Ballroom
611 S Jefferson St #6b, Roanoke, VA 24011
To register for the Roanoke rollout, click here.

December 10th - Northern Virginia Rollout
7:30 - 9:00 a.m.
LMI - Headquarters
7940 Jones Branch Drive, Tysons, VA 22102
To register for the Northern Virginia rollout, click here.

December 16th - Lynchburg Rollout
7:30 - 9:30 a.m.
Liberty University Williams Stadium, Club Level (3rd floor)
1971 University Boulevard, Lynchburg, VA  24515
To register for the Lynchburg rollout, click here.



Nominations Now Open for 21st Annual Fantastic 50 Awards!

April 28, 2016
Westfields Marriott-Chantilly, VA

The names of fifty of Virginia's fastest growing companies will be announced at the twenty-first annual Virginia's Fantastic Fifty Banquet.  

Program Requirements:
  • Nominees must be privately held companies headquartered in Virginia.
  • They will be ranked by four-year average growth rates (FY 2011-FY 2014).
  • Their base fiscal revenues must exceed $200,000 and their most recent fiscal revenues must be less than $200 million.
  • They must also demonstrate year-over-year positive revenue growth and positive net income in their past four fiscal years.
Nominate your company or a deserving
 client who meets these requirements here.

 

Platinum Sponsor
Presenting Real Estate Firm Sponsor


Signature Sponsors:



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