Virginia Enterprise Zone Program
Rewarding Investment – Revitalizing Community

The Virginia Enterprise Zone application site for grant year 2011 is now open The Enterprise Zone program is now accepting applications. To access instruction manuals, required forms, and to submit your application please visit the EZ Application Submission System.

*All application materials must be submitted to DHCD by April 2, 2012.* Electronic submission will close at 11:59 PM on April 2, 2012 and all hard copies must be post-marked no later than April 2, 2012

For more information about the Enterprise Zone Program, the Real Property Investment Grant (RPIG) or the Job Creation Grant (JCG), contact Lauren Fink at lauren.fink@dhcd.virginia.gov.

Established by the General Assembly in 1982, the Virginia Enterprise Zone program is a partnership between state and local government that stimulates job creation and private investment within designated areas throughout the state. Currently, Virginia has more than 50 designated enterprise zones.  See VEZ map

Virginia Enterprise Zones Announces How-to-Qualify Workshops
The Virginia Department of Housing and Community Development (DHCD) will hold two Virginia Enterprise Zone (VEZ) How-to-Qualify Workshops on the dates specified below. These workshops will provide detailed instructions on qualifying for the VEZ Real Property Investment Grant (RPIG) and the Job Creation Grant (JCG).  The workshops are free and open to the public. Below is a list of workshops that are currently being offered:

Thursday, January 19, 2012; 1:30-4 p.m. City Council Chambers, 116 W Beverley St. Staunton, VA, 24401.  (Parking directly behind City Hall in the Johnson Street Parking Garage)

Friday, January 20, 2012; 1-3:30 p.m. Portsmouth Partnership Briefing Center, 200 High St. Suite 203 Portsmouth, VA 23704 (Parking behind PPBC in the Middle Street Parking Garage)

Please register using the link below.  If you have questions, please contact Lauren Fink at Lauren.Fink@dhcd.virginia.gov or (804) 371-7121.

Virginia Enterprise Zone Local Zone Administrators’ Web Conference
If you would like to review the presentation of the Local Zone Administrators’ Web Conference that was held October 26, 2011, you may click here.

To listen in on the audio recording of the Web Conference, click here.

Job Creation Grant Revisions

The Virginia Enterprise Zone (VEZ) job creation grant program was amended to change the eligibility for job grants in areas with unemployment rates that are equal to or more than one and one-half times the state average. Currently positions paying less than 175 percent of the federal minimum wage are not eligible for the job grants. The amendment to the statute will allow otherwise eligible businesses in high unemployment areas paying 150 percent of the federal minimum or $10.88 to receive grants. High unemployment area zones authorized by this new provision are listed below.

Funding Allocation Revisions

The Virginia Enterprise Zone (VEZ) grant program was amended to allow Job Creation Grants (JCG) to receive funding priority. The amendment charges DHCD with fully funding the JCGs and thus they will not be subject to pro-ration. The remaining funds will be allocated to the Real Property Investment Grants (RPIGS) and the amount paid to each RPIG applicant will be pro-rated proportionally should the grant requests exceed the remaining amount of funding.

Two grant-based incentives are available, Job Creation Grants and Real Property Investment Grants. For more information on the grants’ eligibility criteria, see the Virginia Enterprise Zone grant information table

• Job Creation Grants are based on:
  
  • Permanent full time job creation over a four job threshold, exceeding threshold wage rates* , and the availability of health benefits;
  • Personal service, retail, food and beverage positions are not eligible to receive job creation grants; and
  • The amount of the grant will be based on the wages paid for those grant eligible positions.
    
• Real Property Investment Grants are based on:
  
  • Qualified real property investments made by any individual or entity to a commercial, industrial, or mixed use building or facility in a designated Virginia Enterprise Zone;
  • An investment of greater than $100,000 for rehabilitation projects (grants are issued for up to 20 percent of anything spent in excess of the $100,000 threshold)
  • An investment of greater than $500,000 for new construction projects (grants are issued for up to 20 percent of anything spent in excess of the $500,000 threshold)
  • The grant is capped at $100,000 per building or facility for investments less than $5 million, and $200,000 for investments of $5 million or more.
    
• If a business firm previously qualified or has signed an agreement with the Virginia Department of Housing and Community Development (DHCD) and is eligible to receive the General Income Tax Credit, application materials are available for these pre-2005 incentives.

In addition to these state incentives, each locality offers its own package of incentives tailored to their unique needs. To find out whether a business or real property is located within an enterprise zone, or to learn more about a specific zone’s local incentive package, see the contact list of Local Zone Administrators.

Related Links:

• Virginia Enterprise Zone Map
• Detailed information on Virginia Enterprise Zone grants
• Contact list of Local Zone Administrators
• Information for Local Zone Administrators

Publications

• 2011 Job Creation Grant Manual
• 2011 RPIG Instruction Manual
• 2011 CPA Agreed Upon Procedures
• Qualification Year Annual Report to the General Assembly
• CPA Engagement Letter Template

Legislation and Program Regulations:

• Virginia Enterprise Zone Program, Code of Virginia Citations
• Virginia Enterprise Zone Program Regulations