9401 Courthouse Road
Chesterfield, VA 23832-6685
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Manufacturing companies can greatly benefit from Chesterfield’s low machinery and tools (M&T) tax. Specifically, at an effective rate of 25 cents per $100 of assessed value, Chesterfield offers the lowest machinery and tools tax of any urban/suburban locality in Virginia, providing for significant savings in operating costs to manufacturers. For example, a $20 million equipment investment would generate an annual M&T tax bill of $50,000 in Chesterfield County. Compared to taxes of $200,000 per year in similar jurisdictions, with the more common effective rate of $1.00/$100, Chesterfield’s low machinery and tools rate would mean an annual savings of $150,000.
In addition, there is no tax on intangible property (financial assets, trademarks, patents) and no tax on inventory. (View all local tax rates.)
Virginia’s sales tax is only 5 percent, one of the nation’s lowest. The following are exempt from state sales tax:
A corporate income tax credit is available to manufacturers for the purchase of certified machinery and equipment for processing recyclable materials. The credit is equal to 10 percent of the original total capitalized cost of the equipment.
Companies may claim an income tax credit equal to 25 percent of all expenditures incurred in the construction, renovation, planning or acquisition of facilities for the purpose of providing day care for children of company employees. Maximum credit $25, 000.
An income tax credit is available for the purchase of clean fuel vehicles and investment in related refueling facilities. The credit is equal to 10% of the IRS allowed deduction.
Companies may receive an income tax credit equal to 30% of all expenditures made by the company for eligible worker retraining.
Companies making donations to neighborhood organizations conducting approved community assistance programs for impoverished people may get a tax credit for 45% of the total donation. Activities include emergency assistance, housing assistance, crime prevention programs, job training, and education assistance.
For qualifying projects, Chesterfield County may be willing to consider financial incentives on a case-by-case basis. The value of these incentives will be dependent upon the total investment (land, building, equipment) and employment numbers estimated for the project, pending direct discussions with the prospective company.
When justified by the project scope, Chesterfield County will also pursue available funding assistance from the Commonwealth of Virginia to further assist the company in areas such as workforce training, land acquisition, construction of industrial roads, or railroad access.
Financing may be available through Chesterfield County Industrial Development Authority with tax-exempt Industrial Revenue Bonds (IRBs) for manufacturing facilities.
Virginia will assist in constructing roads to sites not currently served by roads through the Industrial Access Road Funds program. And the state will assist in constructing rail lines to sites not currently served by rail through the Industrial Rail Access Funds program.
The Governor’s Opportunity Fund supports economic development projects that create new jobs and investment in accordance with established guidelines. Chesterfield may request a grant, to be paid to the company and matched by the county dollar for dollar.
The Business Expansion Incentive Fund (BEIF) was established for the purpose of securing job-creating economic development opportunities through the preservation and expansion of existing business in Chesterfield County. BEIF assistance may be in the form of a low-interest loan or a grant. Applications are made to the Chesterfield County Economic Development Department.
Chesterfield County can also offer fast-track permitting of both site and building plans review should a project need to be expedited. Our proven success with this process has been demonstrated with a number of development projects throughout Chesterfield and can be further outlined upon request.