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VIRGINIA'S GENERAL INCENTIVES
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Major Business Facility Job Tax Credit
Qualifying firms locating or expanding
in Virginia receive a $1,000 corporate income
tax credit for each new full-time job created
over a certain threshold.
Recycling Equipment Tax Credit
An income tax credit is available
to manufacturers for the purchase
of certified machinery and equipment
used in processing recyclable
materials.
Neighborhood Assistance Tax
Credit
Companies that donate to
neighborhood organizations providing
approved community assistance
to impoverished people qualify
for a tax credit equal to 45
percent of the total contribution.
Day Care Facility Investment
Tax Credit
Corporations may claim a
tax credit equal to 25 percent
of expenses incurred during the
planning, construction, renovation,
or acquisition of facilities
for the purpose of establishing
a state-licensed day care facility
for children of company employees.
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VIRGINIA'S ENTERPRISE
ZONE PROGRAM
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The
Virginia Enterprise Zone Program,
administered by the Virginia
Department of Housing and Community
Development (DHCD), assists
with business development and
expansion in specially targeted
areas throughout the state
called Enterprise Zones. The
2005 Virginia General Assembly
adopted a new Enterprise program
that is based upon cash grants
for new job creation and investment.
There are no longer state income
tax credits associated with the
Enterprise program. In addition
to the state incentives, local
Enterprise Zone incentives are
available as well.
Enterprise Zone Job
Creation Grants
For companies creating at least
four net new qualifying jobs
with health benefits and paying
at least twice the federal
minimum wage rate ($5.15 x
2 = $10.30 per hour), a job
grant amount of $4,000 is available
for each job over the four threshold jobs.
Companies paying 1.75 times the federal minimum
wage rate ($5.15 x 1.75 = $9.01 per hour)
are eligible for $2,500 per qualifying job
over the threshold amount. Companies with
pay rates below $9.01 per hour are not eligible
for the job grant. The grant is paid out
in annual installments of either $500 or
$800 per job and is available for qualifying
jobs over the threshold for five years. Qualifying
companies may claim the grant on up to a
maximum of 350 jobs.
Please note: Once
a job attains the minimum qualifying wage
level (currently $9.01 per hour), the grant
is available for that job. For jobs in the
payroll less than one calendar year, a pro-rated
amount will be given to that company for
that year, and then the full amount will
be given for that job for each of the remaining
years in the company's five-year period.
Real Property Investment Grant
Qualified businesses investing in qualifying
real property investments** may receive a
cash grant in an amount equal to 30 percent
of depreciable real property improvements
for the calendar year the property is placed
in service in a zone. For companies investing
$2,000,000 or less in real property investments,
the maximum grant is $125,000. For companies
investing over $2,000,000, the maximum grant
is $250,000. Total grant awards may not exceed
the maximums specified above within a five-year
period for a specific building or facility.
Investment in rehabilitation/expansion projects
must equal $50,000. New construction projects
must invest at least $250,000 in qualified
improvements.
**Qualified real property investments include
expenditures associated with (a) any exterior,
interior, structural, mechanical or electrical
improvements necessary to construct, expand
or rehabilitate a building for commercial,
industrial or mixed use; (b) excavations;
(c) grading and paving; (d) installing driveways;
and (e) landscaping or land improvements.
Qualified real property investments shall
include, but not be limited to, costs associated
with demolition, carpentry, sheetrock, plaster,
painting, ceilings, fixtures, doors, windows,
fire suppression systems, roofing, flashing,
exterior repair, cleaning and cleanup. Qualified
real property investment shall not include:
(a) The cost of acquiring any real property
or building; (b) Other acquisition costs
including: (i) the cost of furnishings; (ii)
any expenditure associated with appraisal,
architectural, engineering, surveying, and
interior design fees; (iii) loan fees, points,
or capitalized interest; (iv) legal, accounting,
realtor, sales and marketing, or other professional
fees; (v) closing costs, permits, user fees,
zoning fees, impact fees, and inspection
fees; (vi) bids, insurance, signage, utilities,
bonding, copying, rent loss, or temporary
facilities incurred during construction;
(vii) utility connection or access fees;
(viii) outbuildings; (ix) the cost of any
well or septic or sewer system; and (x) roads.
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GREENSVILLE COUNTY,
VIRGINIA ENTERPRISE ZONE — LOCAL
INCENTIVES
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Portions of Greensville
County have been designated
as a Virginia Enterprise
Zone offering significant
state and local incentives
for business investment and
job creation. Following are
the primary local incentives
offered by Greensville County
and its local Virginia Enterprise
Zone:
Real Estate and Machinery
and Tools Tax Rebate: This
incentive allows for the rebate of up to
50 percent of the taxes collected for a maximum
of ten years. Industries are evaluated on
a case-by-case basis with preference given
to the employment of low- and moderate-income
individuals; employment opportunities of
a skilled and semiskilled nature; the number
of jobs; and a compensation package above
that presently being offered in the community.
Waiver of Building Permit and
Zoning Fees: Building
permit and zoning fees may be waived
for commercial and industrial developments
locating in the Enterprise Zone. Waivers
are granted on a case-by-case basis.
Rebate of
Business, Professional,
Occupational License
(BPOL): Up
to 50 percent of
the BPOL fees paid
by a commercial establishment
may be returned to
the firm for a maximum
period of five years.
Preference is given
to those establishments
that employ low-
and moderate-income
individuals or create
a large number of
new jobs.
Utility Service
Improvements: The
Greensville County
Water and Sewer Authority
will provide extension
of utility service
improvements needed
by an industry or commercial
establishment on a
case-by-case basis.
The provision of these
utilities is dependent
upon state funding
sources such as the
Community Improvement
Grant Program of the
Virginia Department
of Housing and Community
Development
Waiver of Water
and Sewer Tap Fees: The
Greensville County
Water and Sewer Authority
will provide for the
waiver of required
water and sewer tap
fees to industries
and commercial establishments
if no utility service
improvements are required
to service the development.
Each individual industry
will be evaluated on
a case-by-case basis.
Adult Education
and Employee Training:
This incentive will
concentrate efforts
within the Zone to
provide opportunities
for Zone residents
to obtain their GED
and continue their
adult education to
the college level.
In addition, Southside
Virginia Community
College will assist
employers to train
their employees so
that employees will
be better suited to
meet the challenges
of the work place for
greater career advancement.
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CITY OF EMPORIA
LOCAL ENTERPRISE ZONE INCENTIVES
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The City of Emporia
has established the entire
city as the LOCAL EMPORIA
ENTERPRISE ZONE to stimulate
business and industrial growth
and to improve housing conditions.
Incentives are extended to
commercial, industrial and
residential use located within
the enterprise zone of the
City of Emporia:
Emporia - Commercial Sector Incentives
Five-year Partial
Exemption from Real Estate
Tax for Rehabilitated Commercial
Real Estate
– A partial exemption from real estate
taxes is available for real estate deemed
to be substantially rehabilitated when a
commercial structure is at least 25 years
of age and has been improved as to increase
the assessed value of the structure by 50
percent or more, but without increasing the
total square footage by more than 25 percent.
The exemption provided is for an amount equal
to the increase in assessed value resulting
from the rehabilitation.
Five-year Personal
Property Tax Incentive equal
to 50 percent of the net
increase in business personal
property tax is available
on a case-by-case basis
to new or expanding businesses
that make a minimum of
$2 million in capital investment
or create a minimum of
50 new permanent full time
equivalent jobs
Five-year Business
License Tax Incentive equal
to 50 percent of the
net increase in the
business license tax
is available on a case-by-case
basis to new or expanding
businesses that make
a minimum of $2 million
in capital investment
or create a minimum
of 50 new permanent
full time equivalent
jobs
Building Permit
Fees Waived for
renovation of exiting
structures to businesses
that invest at least
50 percent of the current
assessed value and make
a minimum investment
of $50,000 toward commercial
rehabilitation.
Emporia -
Industrial Sector Incentives
Five-year Partial
Exemption from Real Estate
Tax for Rehabilitated
Industrial Real Estate
– A partial exemption from real estate
taxes is available for real estate deemed
to be substantially rehabilitated when an
industrial structure is at least 25 years
of age and has been improved as to increase
the assessed value of the structure by 50
percent or more, but without increasing the
total square footage by more than 25 percent.
The exemption provided is for an amount equal
to the increase in assessed value resulting
from the rehabilitation
50 Percent Industrial
Machinery and Tools Tax
Refund is
available on a case-by-case
basis for 10 years to
industries investing
at least $2.0 million
in machinery and equipment,
or creating 25 new permanent
full time equivalent
jobs. The refund is equal
to 50 percent of the
net increase in machinery
and tools tax.
Emporia - Residential Sector Incentives
Five-year
Partial Exemption From Real Estate Tax is
available for real estate that has been substantially
rehabilitated when a residential structure
is at least 25 years of age, has been improved
to increase the assessed value of the structure
by at least 50 percent, but without increasing
the total square footage by more than 25
percent. The exemption is the amount equal
to the increase in assessed value resulting
from the rehabilitation.
Building Permit Fees Waived to
residential property owners that invest
at least 50 percent of the current
assessed property value toward rehabilitation.
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