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Virginia Enterprise Zone Program

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Virginia Enterprise Zone Program

About the Program

South Boston's Enterprise Zone Program is a Commonwealth of Virginia economic development program managed by the Virginia Department of Housing and Community Development. The state's Enterprise Zone Program is designed to offer state and local incentives for businesses to locate or expand within designated zone areas. Downtown South Boston is included within the boundaries of South Boston's Enterprise Zone. The two state incentive programs are listed below and are subject to the availability of state funding. For more information, please contact us at (434) 575-4209.

Qualification

State Incentives are available to businesses and zone investors who create jobs and invest in real property within the boundaries of enterprise zones.

  • Qualification for the Job Creation Grant (JCG) is based on permanent full-time job creation over a four job threshold, wage rates of at least 175 percent of the Federal minimum wage (150 percent in HUAs*), and the availability of health benefits. Personal service, retail, food and beverage positions are not eligible to receive job creation grants.

    *As of 2010, firms located in High Unemployment Areas (HUAs) may qualify for the JCG at the reduced wage rate threshold of $10.88 (150 percent of the Federal minimum wage). A list of HUAs is provided below in the Helpful Links section of this page.

  • Eligibility for the Real Property Investment Grant (RPIG) is based on qualified investments made to commercial, industrial, and mixed-use buildings or facilities located within the boundaries of an enterprise zone. To be eligible for the RPIG, an individual or entity must invest at least $100,000 for rehabilitation or expansion projects and at least $500,000 for new construction projects.

  • For more information about state incentive eligibility criteria and grant awards, please reference the Virginia Enterprise Zone Grant Matrix.

Local Incentives:

  • Discount on listed sale price of publicly owned sites requiring a minimum taxable capital investment of $1 million and creation of 25 jobs over a 3 year period

  • Machinery and Tools Investment Grant requiring a minimum net new taxable investment of $50,000 in machinery and tools. This grant amount is awarded for a five-year period based on the tax increase for the payout year as follows: 100% the first year, 80% the second year, 60% the third year, 40% the fourth year, and 20% the fifth year.

  • Furniture, Fixtures, and Equipment Grant available to non-manufacturers with a minimum net new taxable investment of $50,000 in furniture, fixtures, and equipment. This grant is awarded for a five-year period based on the tax increase for the payout year as follows: 100% the first year, 80% the second year, 60% the third year, 40% the fourth year, and 20% the fifth year. Recipient businesses of the Halifax Opportunity Fund are ineligible to receive this incentive.

  • Real Property Rehabilitation Tax Assessment Relief for demolition, removal, renovation, preservation, and/or redevelopment of blighted structures in the zone. . Qualifying projects in Town of South Boston must increase the assessed value of the real property by at least $65,000. Structures must be a minimum of 15 years old. Demolition and/or removal are not allowed in the Historic District of the Town of South Boston. This program reduces taxes payable on the rehabilitated property for five succeeding years.

  • Business and Professional License Fee Rebate available to new businesses in the zone or expanding existing businesses increasing and maintaining full time employment by at least 10%. This rebate based on the following schedule: 100% the first year, 80% the second year, 60% the third year, 40% the fourth year, and 20% the fifth year.

  • Utility Tax Rebate on Electricity and Natural Gas available to new businesses in the zone or expanding existing businesses increasing and maintaining full time employment by at least 10%. This rebate is based on the following schedule: 100% the first year, 80% the second year, 60% the third year, 40% the fourth year, and 20% the fifth year.

  • Building Permit Fees Partial Exemption from local building permit fees above the minimum fees charged for each individual permit. This incentive is automatic upon permit application for initial construction or expansion;

  • Free Chamber of Commerce Membership available to new enterprises locating in the Enterprise Zone and for non-Chamber enterprises expanding their operations in the zone. Expansions would include addition of jobs and/or investment.