Virginia Enterprise Zone Program
Rewarding Investment – Revitalizing Communities

VEZ local zone administrators workshop announced
The Virginia Department of Housing and Community Development (DHCD) will be holding the 2010 Virginia Enterprise Zone (VEZ) local zone administrators workshop.  This workshop is open to all VEZ local zone administrators in the Commonwealth of Virginia.  The workshop will provide local zone administrators with information regarding recent legislative changes, best practices, and opportunities to dialogue with other administrators from municipalities across the Commonwealth.

The cost to attend is $25, refundable ten days prior to the start date. Please make checks payable to the Treasurer of Virginia, Main Street Centre, 600 East Main Street, Suite 300, Richmond, VA 23219 or pay by credit card at the registration site.  

Monday, Sept. 20, 1 p.m. - 5 p.m. and Tuesday, Sept 21, 8 a.m. - 3 p.m.
Institute for Advanced Learning & Research
150 Slayton Rd
Danville, VA 24540

Registration >> URL

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

Announcement: The General Assembly made two important changes to the Virginia Enterprise Zone (VEZ) grant program in 2010.

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.

For more information contact Reese Peck at: (804) 371-7066 or Reese.Peck@dhcd.virginia.gov.

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

• Qualification Year Annual Report to the General Assembly
• Zone Designation Instruction Manual
• Zone Designation Application
• CPA Engagement Letter Template

Legislation and Program Regulations:

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