Enterprise Zones

Henrico County is one of the nation’s premier business environments. With its low tax rates, exceptional infrastructure and remarkable quality of life, Henrico has already attracted over 25,000 companies from small start-ups to giant multi-national conglomerates.

The enterprise zone areas offer further proof of Henrico County’s commitment to maintaining its business-friendly approach while encouraging economic and community prosperity in Greater Richmond. 

Whether your business is large and ever expanding, small but in search of the right place to grow, or simply an idea in the heads of a few ambitious individuals, Henrico County is ready to help you realize its full potential.

What is an enterprise zone?

An enterprise zone is a specific area in a city, town or county targeted by a community for increased business and industrial development. Areas are designated by the Governor of Virginia, following application by the local governing body. Once an enterprise zone is defined, property owners and both new and existing businesses within its limits can take advantage of incentives offered by state and local governments.

The long-term goals of an enterprise zone are to aid economic growth and enhance neighborhoods and communities within the zone.

What businesses qualify for zone incentives? Both new and existing businesses can qualify for enterprise zone incentives. The following types of businesses can participate in the program: 

• Firms establishing a new business within the enterprise zone.
• Existing businesses relocating to facilities within the zone.
• Existing businesses already within the zone intending to expand.

What Incentives are Available?

Businesses located in an Enterprise Zone are entitled to incentives from Henrico County and the Commonwealth of Virginia.

Henrico County

Architectural Design Assistance

Businesses planning to improve the appearance of their buildings are eligible to receive, free of charge, professional "schematic design assistance."  This assistance includes a rendering and advice about the early stages of their architectural planning and a cost estimate for the improvements.

Building Facade Grants

Businesses wishing to improve the appearance of their buildings -- or just to bring their exteriors and interiors into compliance with codes -- can receive up to $30,000 to renovate. (Some of these incentives carry job-creation requirements.  In this case, that means they will need to hire one new employee for every $10,000 they receive. But existing small businesses with no more than six employees need not meet this requirement.)

Paving Grant

Property owners who would like to pave the parking areas at their existing or expanding businesses can receive up to $5,000 to defray these costs.

Landscaping Grants

Property owners can receive up to $2,000 to help pay the costs of landscaping the front of their existing businesses or parking areas.

Building Demolition Grant

Property owners wishing to demolish a structure to make way for a new building can receive up to $30,000, provided the new building will cost at least $250,000.

Off-Site Improvement Grants

Businesses wishing to make improvements to their off-site drainage, water and sewer systems can receive up to $10,000 for these purposes. (Businesses receiving these grants must also agree to invest $50,000 in improvements to an existing building or $250,000 in a new one.)

Rehabilitation Real Estate Tax Exemptions

Businesses rehabbing a commercial or industrial property can receive a seven-year exemption of taxes assessed on any increase in the value to their property. (Any such increase must be the result of that rehabilitation, and the building must be at least 26 years old.)

Commonwealth of Virginia Enterprise Zone Incentives

These state incentives take the form of grants and area available for two purposes: real property improvements and job creation.

• To qualify for real property improvement grants, which are issued for up to 20 percent of expenditures in excess of $100,000, businesses must spend an amount greater than the $100,000 threshold.
• For new construction, they must spend at least $500,000.
• Projects involving an investment of up to $5 million are eligible for grants up to $100,000.
• Projects involving an investment of $5 million or more are eligible for grants up to $200,000.
• Job-creation grants are available for manufacturing, warehouse, construction and transportation businesses; retail, personal service or food and beverage businesses generally do not qualify.
• To qualify, jobs must pay at least 175 percent of the federal minimum wage. Those paying at least 175 percent but less than 200 percent of the federal minimum wage and that provide health benefits are eligible for grants of $500 per job, per year for five years.
• Jobs that pay 200 percent of the federal minimum wage and that provide health benefits are eligible for grants of $800 per job, per year for five years.

Information

For more information on specific requirements, please contact the Henrico County Economic Development Authority or the following agencies:

Virginia Department of Housing and Community Development
Phone: 804.371.7030 

Henrico County Department of Community Revitalization
Phone: 804.501.7640