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Incentives

New and expanding businesses may be eligible for incentives from local, state and federal governments. Training assistance, grants, preferential treatment when bidding for federal contracts and more may be available to your business. Three programs are highlighted below. Our Executive Director can answer your questions and provide guidance.

Virginia Enterprise Zone #53 is located within the Alleghany Highlands. A map of the Enterprise Zone area can her found here: Alleghany Highlands Enterprise Zone Map.

There are state and local Enterprise Zone economic benefits: The State programs provide cash grants for new job creation and real property investment.The local economic benefits consist of tax and fee reimbursements. HUBZone  is a US Small Business Administration program for small companies that operate and employ people in Historically Underutilized Business Zones (HUBZones). Small business will be designated as HUBZone certified if they meet the following criteria:

  • The firm must be a small business based upon the North American Industry Classification System for size standards.
  • The business must be at least 51 percent owned and controlled by citizens of the United States.
  • The firm’s principal office (the location where the greatest numbers of employees perform their work, excluding contract sites) must be in a HUBZone.
  • 35 percent of the firm’s total workforce must reside in a HUBZone.

Advantages of HUBZone Certification include:

  • The chief advantage for a small business is preferential treatment when bidding on Federal Contracts. The HUBZone firm gains a 10 percent cost advantage in bidding on government contracts over non-HUBZone competition.
  • The small business also gains access to additional loan and bonding programs available through the SBA.
  • Another preferential treatment that HUBZone Certified firms enjoy is that SBA small businesses are also selected by larger companies to assist in the completion of Federal Contracts. The large firm is given targets by the government for assistance by HUBZone firms as part of their contract. Compliance for large firms with government contracts begins with contract values in access of $550,000. This gives the HUBZone firm access to completing a piece of the overall project gaining experience as profit.

Virginia Jobs Investment Program is part of the Virginia Department of Business Assistance. VJIP provides customized recruiting and training incentives and includes a program geared for small business.

The Small Business New Jobs Program supports existing Virginia companies which have 250 or fewer employees companywide. In order to qualify for assistance under the program, a company must:

  • Create at least 5 net new jobs within 12 months from the date of the first hire.
  • Make a new capital investment of at least $100,000 associated with the start up or expansion.
  • Pay a minimum entry-level wage rate of $10.00 per hour. In areas that have unemployment of two times or more the state level, this wage minimum may be waived. Only full-time jobs are eligible for funding.

The Job Creation Grant is a manual which provides instructions for qualifying for the Enterprise Zone (EZ) Job Creation Grant (JCG). It has been compiled for the applicant (the business firm) and addresses the applicant’s responsibilities in completing the application materials.

The Job Creation Grant instruction manual is organized as follows:

  • An overview of the grant amount and eligibility criteria;
  • General limitations;
  • Preliminary information for applicants to gather;
  • Step-by-step instructions for completing the required application and supplemental materials.

The Real Property Investment Grant is a manual which provides instructions for qualifying for the Enterprise Zone (EZ) Real Property Investment Grant (RPIG). It has been compiled for the applicant (Qualified Zone Investor) and addresses the applicant’s responsibilities in completing the application materials.

The Real Property Investment Grant Application Instruction Manual is organized as follows:

  • An overview of the grant amount and eligibility criteria;
  • General limitations;
  • Preliminary information for applicants to gather;
  • Step-by-step instructions for completing the required application and supplemental materials.
  • Instructions for registering with the Department of Accounts, Electronic Data Interchange (EDI) Program.

State Incentives

GOVERNOR’S OPPORTUNITY FUND

The Governor’s Opportunity Fund (GOF) is a discretionary incentive available to the Governor to secure a business location or expansion project for Virginia. Grants are awarded to localities on a local matching basis with the expectation that the grant will result in a favorable location decision for the Commonwealth.

THE VIRGINIA INVESTMENT PARTNERSHIP GRANT AND THE MAJOR ELIGIBLE EMPLOYER GRANT

The Virginia Investment Partnership (VIP) Grant and the Major Eligible Employer Grant (MEE) are discretionary performance incentives designed to encourage continued capital investment by Virginia companies, resulting in added capacity, modernization, increased productivity, or the creation, development and utilization of advanced technology.

THE VIRGINIA ECONOMIC DEVELOPMENT INCENTIVE GRANT

The Virginia Economic Development Incentive Grant (VEDIG) is a discretionary performance incentive, designed to assist and encourage companies to invest and create new employment opportunities by locating significant headquarters, administrative or service sector operations in Virginia.

THE VIRGINIA JOBS INVESTMENT PROGRAM

The Virginia Jobs Investment Program (VJIP) is a program that offers customized recruiting and training assistance to companies that are creating new jobs or experiencing technological change. The program is designed to reduce the human resource development cost of new and expanding companies.  Learn more

GOVERNOR’S AGRICULTURE AND FORESTRY INDUSTRIES DEVELOPMENT FUND (AFID)

For agricultural and forestry businesses that add value to Virginia-grown products, the Governor’s Agriculture and Forestry Industries Development Fund (AFID) may be available to them. AFID grants are made at the discretion of the Governor with the expectation that grants awarded to a political subdivision will result in a new or expanded processing/value-added facility for Virginia-grown agricultural or forestal products, and with the expectation that the grant will be critical to the success of the project. The amount of an AFID grant and the terms under which it is given are determined by the Secretary of Agriculture and Forestry and subject to the approval of the Governor.  Learn more

CORPORATE INCOME TAX CREDITS


  • Major Business Facility Job Tax Credit
  • Recycling Equipment Tax Credit
  • Day Care Facility Investment Tax Credit
  • Worker Retraining Tax Credit
  • Virginia Port Tax Credit Programs
  • Research and Development Tax Credit
  • Green Job Creation Tax Credit

CLEAN ENERGY MANUFACTURING INCENTIVE GRANT

The Clean Energy Manufacturing Incentive Grant (CEMIG) is a discretionary performance incentive, designed to encourage clean energy manufacturers to grow in Virginia.

ECONOMIC DEVELOPMENT ACCESS PROGRAM


Administered by the Virginia Department of Transportation, this program assists localities in providing adequate road access to new and expanding basic employers.

TRANSPORTATION PARTNERSHIP OPPORTUNITY FUND


TPOF is a discretionary grant available for transportation-related issues on unique economic development projects.

RAIL INDUSTRIAL ACCESS PROGRAM

Provides funds to construct railroad tracks to new or substantially expanded industrial and commercial projects.

INDUSTRIAL REVITALIZATION FUND

The Industrial Revitalization Fund (IRF) leverages local and private resources to achieve market-driven redevelopment of vacant and deteriorated industrial and commercial properties.

The program is targeted toward vacant non-residential structures that create physicial and economic blight to their area due to their poor conditions. Eligible properties shall include those formerly used for manufacturing, warehousing, mining, transportation and power production, as well as large-scale white elephant structures, such as department stores, theaters, hotels and shopping centers. Structures for which the original intended use was solely residential are not eligible.