The USVI Industrial Development Program provides exemptions from nearly all local taxes and a 90% income tax exemption. In order to qualify, a business must invest $50,000 or more in a USVI business and employ ten persons. Initial tax benefits are granted by the USVI Industrial Development Commission for either ten or fifteen years and may be renewed for five year periods. The Industrial Development Program is typically used by hotels, light manufacturing enterprises, and service businesses. Benefits are usually not granted for businesses which primarily serve the local market. USVI resident shareholders of companies which have benefits are also entitled to 90% income tax exemptions.
Manufacturers which plan to import products into the United States can combine the benefits of the Industrial Development Program with those of a federal law (called the “Headnote 3A” program) to eliminate U.S. customs duties if there is a sufficient amount of value added to the product in the USVI.