Virginia Enterprise Zone Real Property Investment Grant

Virginia Department of Housing and Community Development

Program Type:

Grant

Eligible Geography:

Virginia

Summary:

Real Property Investment Grants (RPIGs) are available for investments made to industrial, commercial, or mixed-use properties located within the boundaries of Enterprise Zones. Its objective is to encourage investment in property in enterprise zones. The Real Property Investment Grant (RPIG) is available for the rehabilitation, expansion, or new construction of commercial, industrial, or mixed-use buildings/facilities located within the boundaries of Virginia Enterprise Zones. The dollar amount of an RPIG is determined by the amount spent on qualified real property investments. Grants are available in amounts up to 20% of the qualified real property investment OVER the respective eligibility threshold. Real property investment expenditures funded by a federal, state, or local grant are not eligible for an RPIG and must be excluded from the RPIG application.

Grant awards are capped per building/ facility over a five-year term based on the cumulative level of investment starting with the qualification year in which a grant was first awarded. Grants may not exceed $100,000 per building or facility in a five-consecutive-year period, where the total investment is less than $5 million. Grants may not exceed $200,000 per building or facility in a five-consecutive-year period, where the total investment is more than $5 million. Five-year periods beginning with the first qualification year in which a grant was awarded for the subject building or facility. After the conclusion of a five-consecutive-year period, the property begins another eligibility period and the grant cap is restored. A full list of required materials and documents are found on the program website.

Eligible Recipients:

For-Profit Business

Eligible Recipients Detail:

Applicant must be the entity that capitalizes the investment on their books or deducts the investment as a business expense under federal Treasury Regulations for tax purposes. The following entities are prohibited from receiving the RPIG: Units of local, state, or federal government (typically FEIN 546) Any entity that does not incur the cost of the investment.

Eligible Purpose:

Last Mile Connectivity; Building Connectivity

Eligible Purpose Detail:

The property must be located within the boundaries of an Enterprise Zone. The building or facility must be commercial, industrial, or mixed-use. Mixed-use is defined as a building incorporating residential uses in which a minimum of 30% of the useable floor space is devoted to commercial, office, or industrial use. Eligible expenses include:
-For the rehabilitation or expansion of an existing structure, the total amount of improvements must exceed $100,000 in Qualified Real property Investments (QRPI) for the Qualified Zone Investor to be eligible. For rehabilitation or expansion projects that include solar panels, the threshold is reduced to $50,000.
- For new construction projects, the total amount of improvements must exceed $500,000 in Qualified Real Property Investments for the Qualified Zone Investor to be eligible. For new construction projects that include solar panels, the threshold is reduced to $450,000.
-Investments in machinery & tools and business personal property are not considered real property.