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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.

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.

Enterprise Zone

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.

Other State Incentives

COMMONWEALTH’S DEVELOPMENT OPPORTUNITY FUND

The Commonwealth’s Development Opportunity Fund (CDOF) 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.

VIRGINIA JOBS INVESTMENT PROGRAM

The Virginia Jobs Investment Program (VJIP) is a discretionary program that provides funding to companies creating new jobs or experiencing technological change to reduce the human resource development costs for new companies, expanding companies, and companies retraining their employees.

Funding for each net new full-time job created or full-time employee retrained is based on a customized budget determined by an assessment of the company’s recruiting and training activities, as well as the project’s expected benefit to the Commonwealth, and is subject to approval by the Secretary of Commerce and Trade.

THE VIRGINIA INVESTMENT PARTNERSHIP GRANT 

The Virginia Investment Performance Grant (VIP) encourages continued capital investment by existing Virginia companies, resulting in added capacity, modernization, increased productivity, or the creation, development, and utilization of advanced technology. The program targets existing manufacturers or research and development services supporting manufacturing. There must be an active and realistic competition between Virginia and another state or country for attracting the project, and matching local financial participation is expected.

The amount of each VIP grant is determined by the Secretary of Commerce and Trade, based in part on the Virginia Economic Development Partnership’s (VEDP) Return-on-Investment analysis and recommendation, and is subject to the approval of the Governor.

THE VIRGINIA ECONOMIC DEVELOPMENT INCENTIVE GRANT

The Virginia Economic Development Incentive Grant program (VEDIG) assists and encourages companies to invest and create new employment opportunities by locating significant headquarters, administrative, or service sector operations in Virginia. There must be an active and realistic competition between Virginia and another state or country for attracting the project.

The amount of each VEDIG grant is determined by the Secretary of Commerce and Trade, based in part on the Virginia Economic Development Partnership’s (VEDP) Return-on-Investment analysis and recommendation, and is subject to the approval of the Governor.

THE VIRGINIA JOBS INVESTMENT PROGRAM

The Virginia Jobs Investment Program (VJIP) is a discretionary program that provides funding to companies creating new jobs or experiencing technological change to reduce the human resource development costs for new companies, expanding companies, and companies retraining their employees.

Funding for each net new full-time job created or full-time employee retrained is based on a customized budget determined by an assessment of the company’s recruiting and training activities, as well as the project’s expected benefit to the Commonwealth, and is subject to approval by the Secretary of Commerce and Trade.

AGRICULTURE AND FORESTRY INDUSTRIES DEVELOPMENT FUND (AFID)

AFID grants are made to localities at the discretion of the Governor with the expectation that the grant will be critical to the success of a project, which will result in creation of new jobs and investment from companies that add value to Virginia-grown agriculture and forestry products.

Grants may be used for a variety of purposes, including public and private utility extension or capacity development on- and off-site; high-speed or broadband internet access extension or capacity development; road, rail, or other transportation access costs beyond the funding capability of existing programs; site acquisition; grading, drainage, paving, and any other activity required to prepare a site for construction; construction or build-out of buildings; or training.

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


The Economic Development Access (EDA) program is a state-funded incentive to assist localities in providing adequate road access to new and expanding manufacturing and processing companies, research and development facilities, distribution centers, regional service centers, corporate headquarters, government installations, and other basic employers with at least 51% of the company’s revenue generated from outside the Commonwealth. EDA is administered by the Virginia Department of Transportation (VDOT).

TRANSPORTATION PARTNERSHIP OPPORTUNITY FUND


Transportation Partnership Opportunity Fund (TPOF) assistance is awarded at the discretion of the Governor in the form of grants, revolving loans, or other financial assistance to an agency or local government of the Commonwealth for activities associated with eligible transportation projects.

The Virginia Department of Transportation (VDOT) administers TPOF. Projects developed with monies from TPOF do not become private property, but become or remain public property following completion. The transportation improvements have to be accomplished according to VDOT standards and specifications and have to be maintained by the appropriate public entity pursuant to relevant agreements.

RAIL INDUSTRIAL ACCESS PROGRAM

The Rail Industrial Access (RIA) program provides funds to construct railroad tracks for new or substantially expanded industrial and commercial projects having a positive impact on economic development in Virginia.

The Department of Rail and Public Transportation (DRPT) administers the RIA, which is subject to the approval of the Commonwealth Transportation Board (CTB). This program is open to businesses, municipalities, economic development entities, and railroads. The limited funding shall be used for track facilities and engineering, but not for utility relocation or right‐of‐way acquisition. Recipients will be required to confirm that initial expectations regarding anticipated carload figures were met.

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 whose poor condition creates physical and economic blight to the surrounding area in which the structure is located. Eligible properties 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 whose proposed end use will be solely residential are not eligible.

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