HB 1138: Economic development incentives; wage requirements.

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

Economic development incentives; wage requirements. Requires companies to pay an average wage for the jobs eligible for assistance under the component programs of the Virginia Jobs Investment Program that is no less than the prevailing average wage, defined in the bill, or, in the case of an economically distressed locality, defined in the bill, no less than 85 percent of the prevailing average wage. Under current law, to be eligible for the component programs, companies must pay a minimum entry-level wage rate per hour of at least 1.2 times the federal minimum wage or the Virginia minimum wage, whichever is higher, and in areas that have an unemployment rate of 1.5 times the statewide average unemployment rate, the wage rate minimum may be waived. The bill also authorizes the payment of Virginia Investment Performance Grants if the average wage paid by the eligible manufacturer or research and development service, excluding fringe benefits, is no less than 85 percent of the prevailing average wage in localities with either (i) an annual unemployment rate for the most recent calendar year for which such data is available that is greater than the final statewide average unemployment rate for that calendar year or (ii) a poverty rate for the most recent calendar year for which such data is available that exceeds the statewide average poverty rate for that year. Under current law, such authorization is limited to those localities meeting both the unemployment rate and poverty rate thresholds.

Sponsors

Sponsors by party (alphabetical): Republican 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. February 5, 2026Read third time and defeated by House (33-Y 65-N 0-A)
2. February 4, 2026Read second time and engrossed
3. February 4, 2026Moved from Uncontested Calendar to Regular Calendar
4. February 3, 2026Read first time
5. January 30, 2026Reported from Appropriations (21-Y 0-N)
6. January 28, 2026Subcommittee recommends reporting (5-Y 0-N)
7. January 22, 2026Assigned HAPP sub: Commerce Agriculture & Natural Resources
8. January 21, 2026Fiscal Impact Statement from Department of Planning and Budget (HB1138)
9. January 14, 2026Referred to Committee on Appropriations
10. January 14, 2026Prefiled and ordered printed; Offered 01-14-2026 26102879D