The short answer is yes. The long answer comes from https://www.tax.virginia.gov/subtractions#long-term-capital
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Long-Term Capital Gains
Income taxed as a long-term capital gain, or any income taxed as
investment services partnership income for federal tax purposes is
allowed as a subtraction provided the income is attributable to an
investment in a "qualified business" as defined in Va. Code § 58.1-339.4
or in any other technology business approved by the Secretary of
Technology. Qualified businesses include those related to advanced
computing, advanced materials, advanced manufacturing, agricultural
technologies, biotechnology, electronic device technology, energy,
environmental technology, medical device technology, nanotechnology, or
any similar technology related field. The business must have its
principal facility in Virginia and less than $3 million in annual
revenues for the fiscal year preceding the investment. The investment
must be made between the dates of April 1, 2010, and June 30, 2020.
Taxpayers claiming the Qualified Equity and Subordinated Debt Credit
cannot claim this subtraction relating to investments in the same
business. In addition, no investment is "qualified" for this deduction
if the business performs research in Virginia on human embryonic stem
cells.
