Commonwealth of Virginia Enterprise Zone Incentives

The Commonwealth of Virginia has adopted new incentives for the state’s enterprise zones. The effective date is July 1, 2009.

Job Creation Grant

• Grants are based on new jobs above a four-job threshold.
• Retail, local service, and food and beverage businesses are not eligible to apply for job creation grants.
• Up to $800 per year for each net new permanent full time position earning at least 200 percent of the Federal minimum wage, and the availability of health benefits.
• Up to $500 per year for each net new permanent full time position earning at least 175 percent of the Federal minimum wage, and the availability of health benefits.
• Companies paying less than 175% of the federal minimum wage will not qualify for the job credit.
• A business can receive grants for up to 350 positions in a given year.
• Job creation grants are based on the calendar year.

Real Property Investment Grant

• This incentive is based on investors who meet minimum enterprise zone real property investment thresholds.
• The minimum investment threshold for a rehabilitation or an expansion project is $100,000.
• The minimum investment threshold for new construction  is $500,000.
• Projects involving up to $5 million in qualified enterprise zone investment may be eligible for a grant equal to 20 % of the amount of the qualified enterprise zone investment not to exceed $100,000 for any building or facility within a five-year period.
• Projects involving $5 million or more in qualified enterprise zone investment shall not exceed $200,000 for any building or facility within a five-year period.