Virginia Enterprise Zone Program
About the Program
Danville's Enterprise Zone Program is a Commonwealth of Virginia economic development program managed by the Virginia Department of Housing and Community Development
. The state's Enterprise Zone Program is designed to offer state and local incentives for businesses to locate or expand within the designated zone areas. Danville has two enterprise zone designations, consisting of 3,551 acres of commercial, industrial, retail, and office spaces as shown on the map
. The two state incentive programs are listed below and are subject to the availability of state funding. For more information, please contact us at (434) 793-1753.
Real Property Investment Grant
Real Property Investment Grants are available for investments made to industrial, commercial, or mixed-use property in an enterprise zone. A mixed-use property is a building incorporating residential uses in which a minimum of 30% of the usable floor space will be devoted to commercial, office, or industrial space.
For the rehabilitation or expansion of existing structures the investor must spend at least $100,000 in qualified real property improvements in order to qualify. Grants are calculated at a rate of 20% of the amount of the investment in excess of $100,000. For projects under $5 million, the maximum amount an investor can receive is $100,000 within a five year period. For projects over $5 million, the maximum is $200,000 over a five-year period.
For new construction the investor must spend at least $500,000 in qualified real property improvements in order to be eligible. Grants are calculated at a rate of 20% of the amount of the investment in excess of $500,000. For projects under $5 million, the maximum amount an investor can receive is $100,000 within a five year period. For projects over $5 million, the maximum amount is $200,000 over a five-year period.
Wage-Based Job Creation Grants
Wage-based job creation grants are offered for new, permanent full-time positions created by business startups and expansions by existing firms. Wage-based job grants are available for all qualified business firms that are not personal service, food/beverage or retail establishments.
Wage-based job creation grants are available in amounts up to $500 per grant-eligible position filled by an employee earning 175% of the federal minimum wage and up to $800 per grant-eligible position filled by an employee earning 200% of the federal minimum wage. These positions must also offer health benefits.
Business firms are eligible to receive job grants for five consecutive calendar years from the first year of grant eligibility. Firms can receive wage-based job creation grants for up to 350 grant eligible positions per year. Positions that pay less than 175% of the federal minimum wage or that do not offer health benefits are not eligible for grants.
Local incentives have been established to complement and enhance the state enterprise zone incentives. Examples of local incentives offered by the City of Danville include:
- Local 5 year wage-based job grants program for the creation of new jobs by targeted industries within the zone (personal service, food/beverage or retail establishments do not qualify)
- Exemption from certain City Permit Fees
- Business and Professional License Fee rebate
- Discounts on the price of certain development sites
- A cash grant of up to $5,000 to the qualifying company to help offset costs for water, sewer, and gas tap fees, company must create 20 new permanent, full-time positions
- Real Estate Tax Abatement Program (limited to certain historic structures) (Zone 1 only)
Please review the Enterprise Zone Brochure
for program procedures. For more information, please contact us at (434) 793-1753