Southern Virginia Technology Park Incentives
Halifax County’s enterprise zone program offers a number of special state and local incentives to businesses and is designed to encourage job creation and investment within designated zones. Halifax County has one of the Commonwealth’s largest Enterprise Zones. The zone is a joint zone with the Town of South Boston.
General Tax Credit
A 10-year tax credit is available against state income tax liability that results from business activity within an enterprise zone. Small qualified businesses investing up to $15 million and creating up to 50 jobs over a 30-month period receive an 80 percent credit in the first tax year and a 60 percent credit in years two through ten. Businesses investing over $15 million and creating 50 or more jobs must negotiate the general tax credit. To qualify for this credit, 25 percent of a business’ new, full-time employees must meet low-income standards for the area or reside within a zone. The business can select any 10 consecutive years in which to take this credit. Existing businesses, businesses already located in a zone when designated or businesses relocating to a zone must increase fulltime employment by at least ten percent, with 25 percent of the increase meeting the low-income standards for the area or living within the zone.
Refundable Real Property Investment Tax Credit for Investment up to $100 million
A credit against state income tax equal to 30 percent of qualified zone improvements is available for rehabilitation projects investing the greater of $50,000 or an amount equal to the current assessed value of the real property. The minimum investment for new construction projects is $250,000 in qualified improvements. To be eligible for this credit, the facility must either be owner- occupied or leasehold improvements (or a portion thereof) must be made by the business. The credit is available for the tax year the property is placed in service. The maximum cumulative credit is $125,000 in any five-year period. The credit is applied first to tax liability; the remaining balance, if any, is refunded to the company.
Investment Tax Credit for Investment over $100 Million
Businesses investing in excess of $100 million in plant and machinery and thereby also creating 200 jobs are eligible for a negotiated state income tax credit of up to 5 percent of investment. The investment tax credit is negotiated and is available when the negotiated investment threshold is reached. Unused credit balances are carried forward until the full amount is used.
Job Grants
Businesses creating new, full-time positions above a 10 percent increase are eligible to receive grants for three consecutive years of up to $500 per job ($1,000 if a zone resident fills a job). The maximum grant to any one firm is $100,000 a year for the three consecutive years in the “grant period.” Businesses may qualify for additional three-year grant periods with additional job creation. Businesses electing to receive this grant are not eligible to receive the Major Business Facility Job Tax Credit.
Businesses may be locally eligible for:
Town of South Boston
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Halifax County
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Business License /Utility Tax Requirements
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Business License
Reimburse 80%, 60, 40, 20, 20
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Business License
Reimburse 80%, 60, 40, 20, 20
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New Business to Halifax County/South Boston
Create at least two (2) new jobs in the zone
Existing Business in Halifax County/South Boston
Increase existing full-time employment by at least 20%
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Utility Tax
Reimburse 80%, 60, 40, 20, 20
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Utility Tax
Reimburse 80%, 60, 40, 20, 20
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Water/Sewer
Charges limited to actual connection costs
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Water/Sewer
Charges limited to actual connection costs
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Permit Fees
Exemption from local permit fees above minimum
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Permit Fees
Exemption from local permit fees above minimum
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The Town of South Boston operates an Interest Buy-Down/Revolving Loan Fund for their portion of the zone. Parties interested should contact Tamyra Vest at tvest@southbostonva.us
Technology Zone
Riverstone Technology Park has been established as a Technology Zone in the Commonwealth of Virginia. Qualified Technology businesses may be eligible for the following Technology Zone incentives:
- Exemption from paying the business, professional, and occupational licensure tax for up to 5 years and a charge of the minimum rate following that period
- Rebate of Utility Taxes for 5 years
- Rebate of Building Permit Fees
- Waiver of Water/Sewer Initiation Fees
- May be eligible for State and local Enterprise Zone incentives
- Reduced lease costs
- Technology Opportunity Fund
Technology Opportunity Fund
For qualified jobs located within the Technology Zone, a payment of $250 per new job for 5 years may be available. Only jobs filled by Halifax County citizens are eligible. Jobs must be full time, new jobs and pay at minimum 185% of the federal minimum wage.
- New Business Requirements
- Create a minimum of 5 new jobs
- Create $250,000 in new investment (real, tangible, or machinery and tools) or the equivalent through a 5-year lease or more with the IDA
- Existing Business Requirement
- Create a minimum of 5 new jobs