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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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