Incentives

Virginia’s Enterprise Zone program provides cash grants for new job creation and real property investment. The entire Alleghany Highlands is located within Enterprise Zone #53. Local (internal link to Alleghany Highlands incentives below) incentives also may be available.

Alleghany Highlands Incentives
The Alleghany Highlands is located within Virginia Enterprise Zone #53. Local incentives, in addition to what the Commonwealth offers, include:

• Utility Consumer Tax Reduction: A 70 percent reduction in the first year, 40 percent for the second and 20 percent for the third year.
• Business License Tax Reduction: A 70 percent reduction in the first year, 40 percent for the second and 20 percent for the third year.
• Real Estate Tax Reduction: A 70 percent reduction in the first year, 40 percent for the second and 20 percent for the third year.
• Machinery and Tools Tax Reduction: A 70 percent reduction in the first year, 40 percent for the second and 20 percent for the third year.

Building Permit Fee Reimbursement:A payment equal to the amount of the building permit fees.

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.