Virginia Enterprise Zone – Job Creation Grant

The Virginia Enterprise Zone (VEZ) program is a partnership between state and local government that encourages job creation and private investment. VEZ accomplishes this by designating Enterprise Zones throughout the state and providing two grant-based incentives, the Job Creation Grant (JCG) and the Real Property Investment Grant (RPIG), to qualified investors and job creators within those zones, while the local government provides local incentives. Contact Kate Pickett Irving & Mandy Archer Virginia Department of Housing and Community Development ezone dhcd.virginia.gov Eligibility All businesses must meet the following eligibility requirements: The business must be located within the boundaries of an active Virginia Enterprise Zone. The business must create at least four net, new permanent full-time positions over the base calendar year. Base-year employment can be either of the two calendar years immediately preceding the first grant year at the choice of the firm, whichever provides the most benefit to the company. Base-year employment is established in the first grant application and remains static for the full five-year period. These positions must meet wage and health benefit requirements. Positions must earn at least 150% of the minimum wage*, or 125% in for High Unemployment Areas ( HUAs and SWAM-certified businesses with an unemployment rate that is at least 150% of the state average. The firm must offer to cover at least 50% of an employee’s health insurance premium. *After December 31, 2024, the Virginia Minimum Wage will increase annually based upon the Consumer Price Index. Adjustments to the Virginia Minimum Wage rate will continue annually by this same methodology and become effective January 1 of each year. The Enterprise Zone wage thresholds are determined on December 1 of the previous calendar year. The following entities are prohibited from applying for the JCG: Units of federal government Nonprofit, other than those classified as NAICS 813910 and 813920 Personal service, food and beverage, and retail The following positions are prohibited from being claimed for the JCG: contracted positions. Personal service, food and beverage, and retail positions. A person who previously qualified for a JCG in connection with a different Enterprise Zone location on behalf of the applicant taxpayer, a related job, or a trade or business under common control ( cannot claim the same job twice). A person whose position previously qualified a firm for the Major Business Facility Tax Credit. Grants are awarded in five-year periods beginning with the first grant year in which a JCG was awarded. To be eligible for the JCG in years two through five, the firm must maintain or increase the number of eligible permanent full-time positions (above the four-job threshold) over base year employment. Firms may apply for a subsequent five-year period given they meet the grant eligibility requirements. JCG awards are determined by the wages paid and the number of full months that positions were filled during the grant year. Grants are available in amounts of: Up to $500 annually per grant eligible position filled by an employee earning at least 150% (125% in HUAs and SWAM-certified businesses) of the minimum wage*, who was offered health benefits. Up to $800 annually per grant eligible position filled by an employee earning 175% of the minimum wage* who was offered health benefits. *"Minimum wage" means the federal minimum wage or the Virginia minimum wage, whichever is higher. The Department shall determine whichever is higher for the current calendar year as of December 1 of the prior calendar year, and its determination shall be continuously in effect throughout the calendar year, regardless of changes to the federal minimum wage or the Virginia minimum wage during that year. Firms can receive grants for up to 350 positions per year.

Eligibility All businesses must meet the following eligibility requirements: