GRANT YEAR 2023
Applications for Grant Year 2023 will be due April 1, 2024. Zone investors that created grant-eligible jobs in calendar year 2023 (January 1, 2023 - December 31, 2023) and zone investors that received final placed-in-service documentation for qualified real property investments in calendar year 2023 (January 1, 2023- December 31, 2023) are eligible for Grant Year 2023. Instruction manuals and Agreed Upon Procedures for the CPA Attestation are available in the Program Resources Section on this page.
VEZ 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 and is calculated as follows:
$800 per year for up to five consecutive years for each grant-eligible position that is paid a wage rate during the qualification year that is at least of 175% ($19.25) of the minimum wage in place during the qualification year, and that is provided with health benefits, or
$500 per year for up to five years for each grant-eligible position that is paid a wage rate during such year that is less than 175% ($19.25) of the minimum wage, but at least 150% ($16.50) of the minimum wage or the reduced wage rate threshold and that is provided with health benefits (see next line).
Qualified business firms in high unemployment areas (HUAs), as well as firms that are SWaM-certified, are eligible to use the reduced wage rate threshold of 125% of minimum wage ($13.75) to qualify for up to $500 per year grants.
A list of HUAs is provided below in the Helpful Links section of this page.
% OF MIN. WAGE WAGE RATE THRESHOLD GRANT PER PFTE ELIGIBLE BUSINESSES 175% $19.25 $800 ALL BUSINESSES 150% $16.50 $500 ALL BUSINESSES 125% $13.75 $500 HUA & SWAM-CERTIFIED BUSINESSES
|* To confirm if a business is SWaM-certified, visit the Virginia Department of Small Business & Supplier Diversity Directory here|
- Eligibility 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. Solar-only improvements of at least $50,000 and up to $100,000 qualify with $0 threshold. Solar as part of a larger project lowers the overall threshold by $50,000.
For more information about state incentive eligibility criteria and grant awards please reference the Virginia Enterprise Zone Grant Matrix under the “Helpful Links “section.
Real Property Investment Grant and Job Creation Grant applications should be submitted to DHCD (electronic submission only; hard copies NOT accepted) along with a copy of the Commonwealth of Virginia W-9 Form by April 1st of the calendar year subsequent to the grant year. If the April 1st due date falls on a weekend or holiday, applications are due the next business day.
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.
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.