Petersburg's Enterprise Zone Program is a Commonwealth of Virginia economic development program managed by the Virginia Department of Housing and Community Development (DHCD). 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.
Real Property Investment Grants
Real Property Investment Grants are available for investment 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 useable floor space will be devoted to commercial, office, or industrial use.
Real Property Investment Grants are available to qualified zone investors in amounts up to 30% of the total amount of qualified real property investment, not to exceed $250,000 per building or facility within a five-year period. For real property investments of $2 million or more, the grant is capped at $250,000 per building or facility within a five-year period. For real property investments less than $2 million, the grant is capped at $125,000 per building or facility within 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 start-ups and expansions by existing firms. Wage-based job grants are available for all qualified business firms that are not local 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 be offered 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.
In order to qualify for wage-based job creation grants, the business firm must be located in a Virginia Enterprise Zone and must increase their permanent full-time positions by four permanent full-time threshold jobs over a base calendar year. Wage-based job creation grants are only available for the new permanent full-time position(s) created above this four-job threshold.
Applications for the Real Property Investment Grants and Wage-Based Job Creation Grants must be submitted to the DHCD, Address Verification Forms must be submitted to the local zone administrator as well. Submittal dates and additional information can be obtained at the Virginia Department of Housing and Community Development website. Should requests for tax grants exceed the state's annual available amount, each qualified business will receive a prorated portion. Grants shall be counted against the cap for the fiscal year in which the grant was allocated.
For more information about the CBD Zone, view the CBD Zone local incentives and map brochure. For more information about the Halifax Zone, view the Halifax Zone local incentives and map.