Virginia Enterprise Zone (VEZ)

The Virginia Enterprise Zone (VEZ) program is a partnership between state and local government that encourages job creation and private investment. VEZ accomplishes this by designating Enterprise Zones throughout the state and providing two grant-based incentives, the Job Creation Grant (JCG) and the Real Property Investment Grant (RPIG), to qualified investors and job creators within those zones, while the locality provides local incentives.

For a list of zones, see the VEZ map.

Grant Year 2018 

The Virginia Department of Housing and Community Development (DHCD) will hold four how-to-qualify workshops on how to apply for Virginia Enterprise Zone state incentives. These workshops will provide detailed instructions on the qualification process for Grant Year 2018 Real Property Investment Grants and Job Creation Grants. Attendance is open to the public and free of charge. The workshops will be held in Richmond, Newport News, Wytheville, and Danville in January. Click here to register for the workshops.

• Grant Year 2017 “How to Qualify” Presentation
• Grant Year 2017 How-to-Qualify Frequently Asked Questions

Center for Urban And Regional Analysis Report on Enterprise Zones

A Review of the Virginia Enterprise Zone Program December 2016 

PROGRAM RESOURCES

• Commonwealth of Virginia W-9
• Job Creation Grant Manual (JCG)
• JCG Worksheets
• Real Property Investment Grant (RPIG)
• RPIG Supplemental Forms
• RPIG 2014-2017 Award Schedule
• CPA Agreed Upon Procedures
• CPA Attestation Report Forms
• CPA Engagement Letter Template

Eligibility

• Qualifications

State incentives are available to businesses and zone investors who create jobs and invest in real property within the boundaries of enterprise zones.

• Qualification for the Job Creation Grant (JCG) is based on permanent full-time job creation over a four job threshold, wage rates of at least 175 percent of the Federal minimum wage (150 percent in HUAs*), and the availability of health benefits. Personal service, retail, food and beverage positions are not eligible to receive job creation grants.

*As of 2010, firms located in High Unemployment Areas (HUAs) may qualify for the JCG at the reduced wage rate threshold of $10.88 (150 percent of the Federal minimum wage). A list of HUAs is provided below in the Helpful Links section of this page.

• Eligiblity for the Real Property Investment Grant (RPIG) is based on qualified investments made to commercial, industrial, and mixed-use buildings or facilities located within the boundaries of an enterprise zone. To be eligible for the RPIG, an individual or entity must invest at least $100,000 for rehabilitation or expansion projects and at least $500,000 for new construction projects.

For more information about state incentive eligibility criteria and grant awards please reference the Virginia Enterprise Zone Grant Matrix under the “Helpful Links “section.

 EZ Application Submission System

PROGRAM HIGHLIGHTS

• Funding Allocation Revisions
  In an effort to prioritize job creation, Job Creation Grants will receive funding priority should grant request exceed available funds. In the event that grant requests exceed allocated funding, Real Property Investment Grants may be subject to proration.

• Job Creation Grant Revisions
  The Virginia Enterprise Zone (VEZ) Job Creation Grant (JCG) has reduced the wage rate threshold for job grants in areas with unemployment rates that are equal to or more than one and one-half times the state average to 150 percent of the federal minimum wage or $10.88 to receive grants. High unemployment area zones authorized by this new provision are listed on the link below.

PARTNERS/INTERMEDIARIES

• In addition to 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.

• Information for Local Zone Administrators

Helpful Links

• Qualification Year Annual Report to the General Assembly

•  Virginia's Economic Development Incentives

• Virginia Enterprise Zone Grant Matrix

• Virginia Enterprise Zone Program, Code of Virginia Citations

• Virginia Enterprise Zone Program Regulations

• Virginia Enterprise Zone Map

• High Unemployment Areas

Real Property Investment Grant and Job Creation Grant applications should be submitted to DHCD (electronically and hard-copy) by April 1, 2019, along with a copy of the Commonwealth of Virginia W-9 Form.