State & Local Incentives
The city of Newport News has two Virginia Enterprise Zones, with these Enterprise Zones designated in four separate parts of the city. Virginia Enterprise Zones provide state and local grants and local tax abatements for qualifying for-profit companies that create new full-time jobs and new taxable investment. State and local incentives include:
- A Real Property Investment Grant for new construction or renovation of commercial or industrial property. The grant is equal to 20% of the cost of renovation or addition or of new construction on amounts above the minimum threshold, up to a maximum grant of $100,000. The grant is $200,000 if the cost of construction or renovation is more than $5,000,000.
- A 5-year Job Creation Grant of up to $800 for each qualifying job. After creating four qualifying jobs over a 2-year period, the grant is equal to $500 for each additional job paying at least 175% of the federal minimum wage (which is currently $12.69 per hour), with health benefits, and $800 for each additional job paying at least 200% of the federal minimum wage (which is currently $14.50 per hour), with health benefits. Retail, restaurant, personal service and part-time jobs are not qualifying. The maximum annual Job Creation Grant is $280,000.
- A partial abatement of the local business license fee. This abatement occurs over a 10-year period and is equal to 100% of the license fee in the first year, 80% in the second year and 60% in years 3 through 10, except in Enterprise Zone #3-A, where the abatement is 80% for the first year, 60% in the second year and 40% in years 3 through 5. The maximum amount of the license fee that can be abated in any 1 year is $10,000.
- A partial refund of local utility taxes. This also occurs over a 10-year period and is equal to 100% of the local tax on electric and natural gas bills in the first year, 80% in the second year and 60% in years 3 through 10, except in Enterprise Zone #3-A, where the abatement is 80% in the first year, 60% in the second year and 40% in years 3 through 5.
- The Expansion / Relocation Cost Reduction Incentive: This is provided by the Newport News Economic Development Authority and is equal to the present value of three years of property taxes on new real estate and machinery paid to the city of Newport News. To qualify for this local incentive, a company must locate a target-industry facility in a Newport News Enterprise Zone, create at least 25 full-time jobs, pay an average of at least $10 per hour and must invest at least $2.5 million in new real estate and machinery. This incentive is delivered as free garage parking in city Center at Oyster Point. This incentive cannot be combined with other local Enterprise Zone incentives.
Forms & Documents
All of the following forms must be mailed to:Mallory Butler, Senior Economic Analyst
Department of Development
2400 Washington Ave., 3rd Floor
Newport News, VA 23607