Finance & Incentives

COST OF DOING BUSINESS

Mecklenburg County Economic Development
350 Washington St.
Boydton, VA 23917
434-738-6388
InvestInMeckVa.com

Download Enterprise Zone Incentives PDF

STATE INCENTIVES

Enterprise Zone Real Property Investment Grant

  • for net new permanent full-time positions created
  • 4-job threshold (5th job triggers the grant)
  • must cover at least 50% of employees’ health insurance premium to be eligible
  • positions must earn at least 150% of the minimum wage (125% in High Unemployment Areas and for SWaM-certified businesses)
  • awarded for 5-year periods if number of eligible permanent full-time positions above the 4-job threshold is maintained or increased

Enterprise Zone Job Creation Grant

  • for net new permanent full-time positions created
  • 4-job threshold (5th job triggers the grant)
  • must cover at least 50% of employees’ health insurance premium to be eligible
  • positions must earn at least 150% of the minimum wage (125% in High Unemployment Areas and for SWaM-certified businesses)
  • awarded for 5-year periods if number of eligible permanent full-time positions above the 4-job threshold is maintained or increased

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 land owned by the Mecklenburg County IDA, South Hill IDA ,or Clarksville EDA.
  • Requires a minimum $2M private investment and the creation of a minimum of 25 new FT jobs as defined by the Commonwealth of Virginia.

Machinery & Tools Grant

  • A grant payment based on the machinery & tools tax paid by the new or expanding industry.
  • This grant is based on the first $5,000,000 of assessed tax value, and paid according to the following schedule beginning with the first tax invoice paid by the industry: Year 1 = 100%, Year 2 = 75%, Year 3 = 50% and Year 4 = 25%.
  • Required to create a minimum of 25 new FT jobs created as defined by the Commonwealth of Virginia within the first 24 months of issuance of Certificate of Occupancy.
  • If company takes this incentive they are ineligible to receive the Industrial Jobs Grant.

Industrial Jobs Grant

  • One-time payment of $400 for each new FT job created by a new or expanding industry, not to exceed $20,000.
  • The payment will be made after the IDA is satisfied that the FT jobs have been created.
  • Industry must create a minimum of 15 new FT jobs up to 50 new FT jobs.
  • Not eligible if using the Machinery & Tools Grant.

Waiver of Building Permit Fees

  • For new and expanding industries.
  • Requires business to create a minimum of 10 FT jobs as defined by the Commonwealth of Virginia within 24 months of Certificate of Occupancy.

Business Personal Property Grant

  • Grant payment will be paid to a new business for 3 years after they have paid their Business Personal Property tax bill to the County at the current rate per $100.
  • The County will then calculate the rate to be the same as the Machinery & Tools rate and grant the client the difference.
  • Business must have a minimum project total investment of $5M and create 20 new FT jobs.
  • If industry uses this incentive they are ineligible for the Industrial Jobs Grant and cannot also use the M & T Grant or the Merchant’s Capital Grant.

Merchants Capital Grant

  • Grant payment will be paid on a sliding scale to the new business for four years after they have paid their first Merchant’s Capital tax invoice. Year 1 = 100%, Year 2 = 75%, Year 3 = 50% and Year 4 = 25%.
  • Must have total investment of $5M and create 20 new FT jobs.
  • If this grant is used then business is ineligible for M & T Grant, Business Personal Property Grant.

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

Employment Inducements

  • 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.

FINANCING

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