Finance & Incentives
COST OF DOING BUSINESS
Mecklenburg County Economic Development
350 Washington St.
Boydton, VA 23917
Enterprise Zone Real Property Grant
The RPIG is available to investors that are undertaking rehabilitation, expansion, or new construction projects within the boundaries of an Enterprise Zone. The building or facility must be Commercial (including office and retail), Industrial, or Mixed-use (At least 30% of usable floor space is devoted to commercial, office, or industrial use).
- 20% of property improvements
- Maximum $200K for improvements over $5M
- Maximum $100K for improvements less than $5M
Enterprise Zone Job Creation Grant
For any qualified business the grant amount 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 175% ($16.63) 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% ($16.63) of the minimum wage but at least 150% ($14.25) of the minimum wage or the reduced wage rate threshold if in a high unemployment area or if the business is certified pursuant to 13VAC5-112-285 subsection C, and that is provided with health benefits (see next line).
- Qualified business firms that are certified under regulations adopted by the Director of the Department of Small Business and Supplier Diversity pursuant to subdivision 8 of § 2.2-1606 of the Code of Virginia are eligible to use the reduced wage rate threshold (125% of minimum wage) in qualifying for the $500 grant amount.
Jobs Investment Program
The Virginia Jobs Investment Program (VJIP) is a discretionary program that provides consultative services and funding to companies creating new jobs or experiencing technological change to reduce the human resource development costs for new companies, expanding companies, and companies retraining their employees.
Funding for each net new full-time job created or full-time employee retrained is based on a customized budget determined by an assessment of the company’s recruiting and training activities, as well as the project’s expected benefit to the Commonwealth, and is subject to approval by the Secretary of Commerce and Trade.
Funding is reimbursable 90 days after the trainee is hired (for new jobs programs) or after the retraining activity has occurred (for retraining programs).
In addition to direct funding to offset a company’s recruitment and training costs, VEDP offers human resource consultative support at no charge.
- Cash grants, free human resources services for recruitment and training assistance.
Commonwealth Opportunity Fund
The Commonwealth’s Development Opportunity Fund (COF) is a “deal-closing” fund to be employed at the Governor’s discretion to secure a company location or expansion in Virginia. Administered by the Virginia Economic Development Partnership (VEDP), the COF serves as a final resource for Virginia in the face of serious competition from other states or countries.
The COF grant is a negotiated amount determined by the Secretary of Commerce and Trade, based on the recommendation of VEDP, and subject to approval of the Governor.
The program offers a cash grant to offset/reimburse qualifying project-related costs such as site acquisition and development, transportation access, utility extension or capacity development, construction or build-out of buildings, or training. A grant is awarded to a local government on behalf of the company. The local government is required to enter into a performance agreement with the company before it may receive the grant award.
- Award amount determined by ROI analysis.
Tobacco Region Opportunity Fund
The Tobacco Region Opportunity Fund (TROF) provides performance-based monetary grants and loans to localities in Virginia’s tobacco-producing regions (of which Mecklenburg County is one) to assist in the creation of new jobs and investments, whether through new business attraction or existing business expansion. These grants and loans are awarded at the Commission’s discretion.
The TROF program is intended to support the goal of the Virginia Tobacco Region Revitalization Commission to revitalize and diversify the economies of tobacco-dependent regions and communities. This goal is measured by job creation, workforce participation rate, wealth, diversity of economy, and taxable assets. Since these are performance-based grants, the Commission monitors performance and requires repayment of the full or pro-rated grant amount if performance metrics are not met.
TROF is the only Tobacco Commission grant program that may be paid at the beginning of the project to help tobacco region localities be competitive in attracting new investment and jobs, resulting in increased tax revenue and opportunity for quality employment in the tobacco region.
- Award amount determined by ROI analysis.
State Advantages for Manufacturers
Virginia offers sales and use tax exemptions for eligible equipment used directly in manufacturing and research and development operations. Prior to exemptions, the Commonwealth’s combined state and local sales and use tax is 5.3% (4.3% state tax and 1% local tax).
Manufacturing and research and development operations receive some of the broadest sales and use tax exemptions for purchases used directly in production or R&D offered by any state in the U.S. While many exemptions are possible, some common exemptions include:
- Production-related machinery and equipment
- Equipment used for production line testing and quality control
- Research and development equipment
- Utilities used in manufacturing delivered through pipes, lines, or mains
- Repair parts
LOCAL ENTERPRISE ZONE INCENTIVES
Industrial Real Estate Discount
- 50% discount off the listed price of any property located in the EZ that is owned by the IDA.
- Minimum of $2M investment and minimum of 25 new FT jobs.
Economic Stimulus Grant
- Grant based on the machinery and tools tax paid by new or expanding industry.
- This grant is based on the first $5M of assessed tax value, paid out accordingly: 100% year 1, 75% year 2, 50% year 3 and final pay out of 25% in year 4.
- Minimum of 25 new FT jobs
Industrial Jobs Grant
- Payment of $400 for each permanent FT job created by a new or expanding industry, not to exceed $20,000.
- This is a one-time payment. Minimum of 15 (up to 50) FT jobs.
- Not eligible if using the Economic Stimulus Grant.
Waiver of Building Permit Fees
- For new or expanding industries (min. of 10 FT jobs)
LOCAL NON-ENTERPRISE ZONE INCENTIVES
Low tax rates
- Real estate taxes in Mecklenburg County are among the lowest in the Commonwealth of Virginia.
Technology or Industry Inducements
- Threshold 5 jobs.
- Technology NAICS Codes 517-518 Information: Inducement 50% of Personal Property Tax.
- Industry NAICS Codes 31 – 33 Manufacturing, 493 Warehousing: Inducement 100% of Machinery & Tools Tax
- One-time payment of $400 per new job created to new or expanding industry, 5 jobs mininum.
- Total limit $20,000.
- Industry NAICS Codes covered are 31-33 Manufacturing, 493 Warehousing and 517-518 Technology Information.
Commonwealth of Virginia Economic Development Revolving Loan Fund
- Loans up to $1,000,000 (up to 40% of the total project cost). Negotiable, typically at or below market rate. Length of loan negotiated for each project, not to exceed the useful life of the assets being financed. Industrial Development Bonds (IDBs), or private activity bonds, are issued locally in Virginia through Industrial Development Authorities (IDAs) for amounts up to $20,000,000
Lake Country Development Corporation Economic Development Revolving Loan Fund
- Loans are made available to leverage other public and private funds for the purpose of economic and industrial job-creating endeavors. Loans of up to $250,000, 3% below Prime Rate (5% floor).
- Funds may be used for
- Purchase of land, buildings, machinery and equipment
- Land improvements
- Renovation or major additions to existing buildings
- Construction of new buildings
- Working Capital