USVI Moving Center - Business Ventures

The Virgin Islands industrial development program is administered by the Economic Development Commission (EDC). Its basic purpose is the promotion of growth, development and diversification of the Virgin Islands.

The EDC

The EDC is empowered to encourage and assist the creation, development and expansion of businesses in the Virgin Islands. The seven-member commission reviews all applications for industrial development benefits. Upon receipt of a completed application, the EDC holds a public hearing followed by approval or denial by the EDC. Approved applications are subject to the Governor’s approval and a certificate (contract) setting out the tax benefits and time periods is executed following the Governor’s approval. The EDC is headed by an Executive Director with support staff in the offices in both St. Thomas and St. Croix. Applications for tax benefits are made through the Executive Director in St. Croix.

In 1994 approximately 80 active companies employing nearly 5,000 persons were receiving tax benefits from the EDC representing a broad range of industries: hotels, guest houses, manufacturing and assembly, major tourist attractions, transportation-related, and export service businesses. The manufacturing sector is represented by oil refining, aluminum production, watch assembly, generic pharmaceuticals, liquor, rum, boat manufacture, high tech electronics, construction materials and a variety of other products.

Incentives

The Virgin Islands Industrial Development Program provides tax exemption incentives for nearly all local taxes and also a possible 90% income tax exemption. In order to qualify, a business must invest a minimum of $100,000 exclusive of inventory in an eligible business and employ at least ten U.S.V.I. residents on a full-time basis. Initial tax benefits are granted by the U.S.V.I Industrial Development Commission for 10-15 year periods and can be renewed for 5 year periods. Benefits are not usually granted for businesses that serve only the local market. Those operations that typically enjoy these benefits are hotels and service businesses. U.S.V.I resident shareholders of companies which have benefits are also entitled to 90% income tax exemptions. Other incentives exist concerning customs and excise taxes.

Visit the Economic Development Commission for more information.

Note: Information for this section provided by the Economic Development Commission, January 2004.

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