| Enterprise Zone • Technology Zone • Technology Opportunity Fund • Governor’s Opportunity Fund • Tobacco Region Opportunity Fund • Machinery and Tools Unused For One Year • Separate Tax Classes for Certain Tangible Personal Property and Machinery and Tools • Halifax Opportunity Fund • Lake Country Revolving Loan Fund • Industrial Development Bonds • Southside Rising Venture Capital Fund • Virginia Small Business Financing Authority • Virginia Does Not Tax • Virginia Sales and Use Tax • Corporate Income Tax Incentives • Major Business Facility Job Tax Credit • Recycling Equipment Tax Credit • Day Care Facility Investment Tax Credit • Worker Retraining Tax Credit • Halifax County HUBZone • Workforce Services • Small Business Development Center • Export Assistance • Industrial Access Road Program • Rail Industrial Access In order to encourage investment and job growth in Halifax County, local government and the Commonwealth have developed numerous programs to aid companies in their location and expansion. This page provides summary descriptions of some of those programs. Please Contact Us for more information. Enterprise Zone There are numerous local and state monetary incentives available to businesses locating or expanding in the designated Virginia Enterprise Zone. Each incentive is dependent on full-time jobs with benefits and/or private taxable investment created. Specific incentives are listed as follows: 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 Local Consumer Utility Tax for 5 years
- Rebate of Building Permit 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
Governor’s Opportunity Fund The Governor's Opportunity Fund (GOF) is designed as a "deal closing" fund to be employed at the Governor's discretion when necessary to secure a company location or expansion in Halifax County. The GOF serves as a final resource for Virginia in the face of serious competition from other states or countries. Awards are made with the expectation that the grant to a locality will result in a favorable decision for the Commonwealth. Grants are made at a locality's request for a project under the following conditions: - Project investment and job creation minimums are achieved
- The locality participates with a matching financial commitment
- The project is not an intra-state relocation
- A Performance Agreement is effected between the community and the company to ensure fulfillment of promised job creation and investment
- Public announcement of the project is coordinated by the Virginia Economic Development Partnership (VEDP)
The performance grant is a negotiated amount determined by the Secretary of Commerce and Trade, based on the recommendation of the Virginia Economic Development Partnership (VEDP) and subject to the approval of the Governor.
Monies may be used for such things as public and private utility extension or capacity development on and off site; road, rail, or other transportation access costs beyond the funding capability of existing programs; site acquisition; grading, drainage, paving, and any other activity required to prepare a site for construction; construction or build-out of publicly owned buildings; grants or loans to an Industrial Development Authority, Housing and Redevelopment Authority, or other political subdivision pursuant to its duties or powers; training; or anything else permitted by law.
Once a company decides on one potential Virginia location, the locality works with the VEDP within the guidelines of this program to seek the funds necessary to apply toward the project. The success of the GOF application is based on the locality’s eligibility and financial support for the project, as well as the actual project requirements and availability of funds. As with all Virginia incentives, the Commonwealth’s investment must make good fiscal sense for both sides, and must carry a suitable return for Virginia, based on a return on investment computed for every project. Tobacco Region Opportunity Fund The Tobacco Region Opportunity Fund (TROF), under the Tobacco Indemnification and Community Revitalization Commission ("Commission"), grants or loans monies to eligible businesses in Halifax County to assist in the creation of new jobs and investment, whether through business attraction or expansion, in accordance with procedures established by the Commission. These grants or loans are for use at the Commission's discretion to attract locations or expansions that require incentives greater than those available to any individual locality. They are targeted for larger competitive projects with a regional impact due to the magnitude of the new employment and investment, and the possibility of economic spin-off and related economic multiplier effect. TROF monies are granted or loaned only with reference to a specific project, which will diversify the economy and attract or encourage immediate growth in the affected communities of Virginia's tobacco producing region. TROF monies may be used as a supplement to GOF monies or in lieu of GOF availability, if the Commission deems that the project is of sufficient merit. In any case, all localities seeking TROF monies must first apply for GOF monies. The Commission shall verify the applicant's status with the Virginia Economic Development Partnership (VEDP) prior to beginning its evaluation. The Commission may work with the VEDP in evaluating an applicant's eligibility for TROF monies. - Project Eligibility
A minimum private capital investment of $1 million, creating at least 25 jobs, is required. In those cases where the project involves job preservation, the number of "jobs saved" will help determine the amount of the grant, but will not be counted to reach the minimum job creation threshold. Similarly, the amount spent to acquire an existing facility will not be counted towards the minimum capital investment threshold. However, the Commission may evaluate both the capital investment and the jobs created on a sliding scale, giving flexibility to those projects promising more jobs but less investment capital, or vice versa. A Performance Agreement between the company, the Commission and the Community is required to ensure fullfilment of promisted job creation and investment. Machinery And Tools Unused For One Year (January 1 st 2004)
Machinery and Tools are normally assessed at 50% of original cost in Years 1-19, 25% of original cost in years thereafter, and 5% in any case were there has been no use for a period of 1 year Separate Tax Classes for Certain Tangible Personal Property And Machinery And Tools In order to promote the development of technology and information based jobs, Halifax County has reduced certain taxable items to a minimum rate and accelerated the depreciation on others. - Equipment Used Primarily For Research, Development, Production, Or Provision of Biotechnology
-New rate of $0.05 per $100 of assessed value
-Assessed 70% in Year 1, and that basis shall be reduced 10% each year through year 5 and shall maintain a basis of 10% of original cost for purposes of determining the assessed value thereafter - Tangible Personal Property Used In Internet Services Equipment
-Assessed 50% in Year 1, and that basis shall be reduced 10% each year through year 5, in year 6 the basis of 5% of original cost for purposes of determining the assessed value, and 1% each year thereafter - Programmable Computer Equipment And Peripherals
-Assessed 50% in Year 1, and that basis shall be reduced 10% each year through year 5, in year 6 the basis of 5% of original cost for purposes of determining the assessed value, and 1% each year thereafter - Data Processing Services Computer Hardware
-Assessed 50% in Year 1, and that basis shall be reduced 10% each year through year 5, in year 6 the basis of 5% of original cost for purposes of determining the assessed value, and 1% each year thereafter - Tangible Personal Property Used In A Research And Development Business
-New rate of $0.05 per $100 of assessed value
-Assessed 70% in Year 1, and that basis shall be reduced 10% each year through year 5 and shall maintain a basis of 10% of original cost for purposes of determining the assessed value thereafter - Machinery And Tools Used In Semiconductor Manufacturing
-New Rate of $0.05 per $100 of assessed value
-Assessed 50% of original cost in Years 1-19, 25% of original cost in years thereafter, and 5% in any case were there has been no use for a period of 1 year or greater Halifax Opportunity Fund At least a 2% return to the business of new investment made in taxable real, personal property, or machinery and tools. The return shall be over a 5-year period and requires wages of at least 175% of current federal minimum wage. - New Business Requirements
- Create at least 20 new, full-time jobs
- Invest at least $2 million in taxable real property, tangible personal property, or machinery and tools within 30 months of an announcement
- Existing Business Requirements
- Create at least 10 new, full-time jobs
- Invest at least $1 million in taxable real property, tangible personal property, or machinery and tools within 18 months of an announcement
Lake Country Revolving Loan Fund - Loans are made available to leverage other public and private funds for the purpose of economic and industrial “job creating endeavors”.
- Loans are made up to $400,000 at a rate of 3% below Prime for up to 10 years (4% floor).
Industrial Development Bonds Tax-exempt Industrial Development Bonds (IDBs) are issued through the Industrial Development Authority. These bonds finance new or expanding manufacturing facilities and exempt projects such as solid-waste disposal facilities. Through IDBs, creditworthy businesses can finance up to 100 percent of the cost of acquiring, constructing, and quipping a facility, ncluding site preparation, at favorable interest ates. IDBs may also be used to allow manufacturers o lease facilities and equipment at tax-exempt rates. All projects financed with IDBs must meet federal tax code eligibility requirements. The maximum manufacturing facilities project size is $10 million; exempt projects are not subject to this limitation. Southside Rising Venture Capital Fund Southside Rising, L.L.C. is a private venture capital fund that that invests in early stage technology companies. Our particular focus on companies in the southern and central Piedmont areas of Virginia reflects both confidences in the economic potential of the region and recognition that we can usually add the most value to companies within close proximity. Southside Rising is the only institutional source of venture capital focused on this region. Virginia Small Business Financing Authority - Loan Fund for Motorsports
The Virginia Department of Business Assistance (DBA), through the Virginia Small Business Financing Authority, provides $250,000 in low interest loans from the Direct Loan program to help finance the move of new motorsports businesses to Virginia, and encourages existing racing businesses to expand.
The Virginia Small Business Financing Authority, which is housed space within the Virginia Department of Business Assistance, offers programs to provide businesses and communities with access to capital needed for economic growth and expansion. - Industrial Development Bonds and the Umbrella Bond Program
The VSBFA issues both tax-exempt and taxable bonds to provide businesses with access to long-term, fixed asset financing at favorable interest rates and terms. In addition, the SBFA offers an Umbrella Bond Program,which provides a cost-efficient means for companies to sell their bonds in the public bond market, particularly for smaller projects with limited access to this market. - Virginia Economic Development Loan Fund
The Virginia Economic Development Loan Fund encourages capital investment in Virginia's communities through "gap" financing and loan guaranties. Eligible borrowers include local Industrial Development Authorities (IDAs), businesses engaged in technology, biotechnology, tourism, basic industries, manufacturing, and those businesses or entities that provide for a locality's economic and "quality of life" development. Businesses that derived 15% or more of their revenues from defense-dependent activities and can demonstrate economic hardship related to defense downsizing may also apply.
Eligible projects must provide for a locality's economic development through job creation or retention or by enhancing a locality's ability to attract private capital investment. As the lender, the VSBFA can finance 40% of a business project or $1,000,000, whichever is less. Terms are generally five years with amortizations based on the life of the asset or the borrower's ability to repay. Rates vary based on risk profile and can be fixed or floating. Loans are secured by assets and personal guaranties. - Loan Guaranty Program
The Loan Guaranty Program is designed to reduce a bank's risk in making loans and, thereby, increase the availability of short-term capital for small businesses. The VSBFA will guarantee up to $300,000 or 75 percent of a loan or a line of credit. To qualify as an applicant under the program, the Virginia business must meet the VSBFA criteria for a small business. Typical borrowings include short-term lines of credit to finance accounts receivable and inventory, and short-term loans for permanent working capital and fixed-asset purchases, such as office or research equipment. - Virginia Capital Access Program
The Virginia Capital Access Program provides a form of loan portfolio insurance for participating banks through special loan loss reserve accounts. These accounts are funded by loan enrollment premiums paid by the bank/borrower and matched by the VSBFA. The program allows the banks to exceed their normal risk thresholds for business loans of all types, and thereby, accommodates a broader array of loan requests. The maximum amount of enrollment is $250,000 with fees ranging from 3-7%. -
Small Business Compliance Assistance Fund
This fund is designed to provide Virginia businesses with financing for the purchase of 1) equipment to comply with the federal Clean Air Act, 2) equipment to implement voluntary pollution prevention measures, or 3) equipment or structures to implement voluntary agricultural best management practices. These direct loans from the VSBFA can be up to $100,000 at a 3% fixed interest rate. Amortizations are typically tied to the useful life of the equipment purchased or the life of the BMP. This fund is for small businesses employing 100 people or less. Eligible projects are certified by the Department of Environmental Quality for air quality or pollution prevention projects, or by the Department of Conservation and Recreation for agricultural best management practices.
Examples of eligible loan uses under the program include high-olume, low-pressure spray guns, dry cleaning machines, alternative curing technologies, ultrasonic cleaning equipment to replace solvent systems and agricultural BMPs that include equipment or structures such as animal waste control facilities and animal waste structure pumping equipment. - Child Day Care Financing Program
This program is designed to assist Virginia child day care providers in obtaining financing for fixed asset needs. The VSBFA offers direct low-interest rate loans to regulated childcare providers for quality enhancement projects or to maintain childcare standards. Borrowers may be child day care centers or family home providers. Eligible loan uses include fixed asset purchases related to childcare such as playground equipment; equipment for infant care, renovations or repairs necessary to comply with health and safety standards or to meet necessary requirements for children with special needs; and learning aids, tools or programs to aide in the development of children. - Halifax County has no Merchant’s Capital (Inventory) Tax
Virginia Does Not Tax:
- Intangible property
- Manufacturers’ inventory
- Manufacturers’ furniture, fixtures, or corporate aircraft
Sales and Use Tax
Virginia’s 4.5 percent combined state and local sales and use tax rate is among the lowest in the nation. Some important exemptions include: - Manufacturers’ purchases used directly in production, including machinery, tools, spare parts, industrial fuels, and raw materials
- Items purchased for resale by distributors
- Certified pollution control equipment facilities
- Custom computer software
- Utilities delivered through lines, pipes, or mains
- Purchases used directly and exclusively in research and development
- Most film, video, and audio production-related purchases
- Charges for Internet access, related communications services and sales of software via the Internet
Corporate Income Tax Incentives Virginia’s corporate income tax rate is 6 percent, and no unitary tax is levied on Virginia companies’ worldwide profits. To further enhance Virginia’s favorable tax treatment, the sales factor in the state’s income apportionment formula is double weighted, benefiting companies with significant Virginia payroll and property. Major Business Facility Job Tax Credit Qualified companies locating or expanding in Virginia receive a $1,000 corporate income tax credit for each new full-time job created over a threshold number of jobs. - Companies locating in enterprise zones or economically distressed areas are required to meet a 50-job threshold; all other locations have a 100-job threshold.
- The $1,000 credit is available for all qualifying jobs in excess of the threshold and is taken in equal installments over three years ($333 per year).
- Non-qualifying jobs include seasonal positions, building and grounds maintenance, security, and other positions ancillary to the principal activities of the facility.
- Credits are available for taxable years beginning on or after January 1, 1995, but before January 1, 2005. Unused credits may be carried over for up to 10 years.
Recycling Equipment Tax Credit
An income tax credit is available to manufacturers for the purchase of certified machinery and equipment used for processing recyclable materials in taxable years beginning on or after January 1, 2001, but before January 1, 2004. The credit is equal to 10 percent of the total original capitalized cost of the equipment. In any taxable year, the amount of credit allowed cannot exceed 40 percent of the company’s Virginia income tax liability before the credit. The unused amount of the credit may be carried over for 10 years. The Virginia Department of Environmental Quality certifies that equipment to be credited is integral to the recycling process. Day Care Facility Investment Tax Credit Businesses may claim a tax credit equal to 25 percent of all expenditures incurred in the construction, renovation, planning, or acquisition of facilities for the purpose of providing day care for children of company employees. Any credit not usable for the taxable year may be carried over to the extent usable for the next three taxable years. The maximum credit is $25,000. The Virginia Tax Commissioner at the Department of Taxation approves applications for this program.
Worker Retraining Tax Credit
Virginia employers will be eligible to receive an income tax credit equal to 30 percent of all expenditures made by the employer for worker retraining. The credit has a spending cap of $2.5 million in any taxable year. Eligible worker retraining consists of courses at Virginia community colleges and private schools, certified by the Department of Business Assistance, or retraining programs through apprenticeship agreements approved by the Virginia Apprenticeship Council.
Halifax County HUBZone Halifax County is a federally recognized HUBZone. The HUBZone (Historically Underutilized Business Zone) Empowerment Contracting Program stimulates economic development and creates jobs in urban and rural communities by providing Federal contracting preferences to small businesses. These preferences go to small businesses that obtain HUBZone (Historically Underutilized Business Zone) certification in part by employing staff who live in a HUBZone. The company must also maintain a "principal office" in one of these specially designated areas. A staff in Washington, D.C. in cooperation with field staff located in SBA District Offices around the country administers the HUBZone Empowerment Contracting Program. A full listing of those local District Office staff members [HUBZone liaisons] is available on the HUBZone web page under "Contacts." Click Here for more information https://eweb1.sba.gov/hubzone/internet/ Click here for Frequently Asked Questions
Workforce Services The Workforce Services division of the Virginia Department of Business Assistance provides customized recruiting and training services to companies that are creating new jobs or experiencing technological change. As a business development incentive supporting economic development efforts throughout Virginia, the program reduces the human resource development costs of new and expanding companies throughout the Commonwealth of Virginia. Workforce Services offers consulting services, organizational development support, electronic media services, and funding. With strong support from the Governor and the General Assembly, Workforce Services' programs are completely state-funded, demonstrating Virginia's commitment to enhancing job opportunities for its citizens. The Virginia Jobs Investment Program is a vital part of the Commonwealth of Virginia's economic development efforts. The program targets expansions of existing Virginia companies or new facility locations which involve competition with other states or countries. The following criterion applies in order to qualify for assistance under the New Jobs Program: - Expansions of existing companies or new company locations need to be creating a minimum of twenty-five (25) net new jobs and making a capital investment of at least One-million Dollars ($1,000,000).
- A minimum entry-level wage rate of $10.00 per hour is required. In areas that have unemployment of two times or more the state level, this wage minimum may be waived. Only full-time jobs are eligible for funding.
The program supports Virginia businesses not engaged in retail. For-profit companies in the following business sectors qualify: - Manufacturing
- Distribution Centers
- Corporate headquarters for companies with multiple facilities
- Inbound call centers
- Information technology services exclusively for businesses
- Research and development facilities
Only fulltime jobs are eligible for funding. The Small Business New Jobs Program is a pilot program that supports existing Virginia companies which are for-profit; have been in operation in Virginia for a minimum of one year prior to application date; and have 250 employees or less companywide. The following criterion applies in order to qualify for assistance under the Small Business New Jobs Program: - Companies must create a minimum of five net new jobs within a 12-month period and making at least $100,000 new capital investment.
- A minimum entry-level wage rate of $10.00 per hour is required. In areas that have unemployment of two times or more the state level, this wage minimum may be waived. Only full-time jobs are eligible for funding.
The program supports Virginia businesses not engaged in retail. The Retraining Program provides services and funding to companies to assist in training their existing work force. Retraining is upgrading the skills of existing employees identified as essential to the production or distribution of a product. Companies participating in the program are typically those which are undergoing an integration of new technology into its production processes, changing product lines in keeping with marketplace demands, or substantially changing its service delivery process requiring an assimilation of new skills and technological capabilities. To be eligible for the Retraining Program, the following criteria applies: - A minimum of ten (10) full-time employees need to be retrained.
- A new capital investment of at least $500,000 is required as the catalyst for the retraining project.
- Companies may utilize the Retraining Program not more than once every two years.
- A minimum entry-level wage rate of $10.00 per hour is required. In areas that have unemployment of two times or more the state level, this wage minimum may be waived. Only full-time jobs are eligible for funding.
The Workforce Services division conducts a recruitment and training analysis consultation to compile information regarding products and services offered by the Company, recruitment needs, pre-employment assessments, curriculum, facilities, instructors, training materials, length of training and schedules, job requirements, existing training, and process skills required. This information is used to develop the highest quality recruiting, training, and retraining programs available custom-designed to meet the company's start-up, expansion, or retraining needs. Small Business Development Center Longwood University’s Small Business Development Center is designed to provide management and technical assistance to small and medium-sized companies in Halifax County. The program’s goal is to grow and assist existing businesses by providing one-on-one counseling and group training on topics including marketing, cash flow analysis, financing, human resources, and general business management. The SBDC also assists entrepreneurs with prebusiness planning. The local SBDC is a network of 30 centers located across the Commonwealth. For more information contact: - Longwood Small Business Development Center
515 Board Street
(Southern Virginia Higher Education Center)
South Boston, VA 24592
Telephone: 434.572.5484 / Fax: 434.572.5462
Larry Harris, Branch Manager
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Export Assistance The Commonwealth offers numerous programs to assist local businesses in increasing or starting an exporting program. For more information visit www.exportvirginia.org . Industrial Access Road Program The Virginia Department of Transportation (VDOT) administers a program that assists new and expanding manufacturing and processing companies in building adequate industrial access roads. The program may be used to: - Improve existing secondary highway system roads and city streets to handle additional traffic
- Construct a new road from a publicly maintained road to the new industry’s property line when no road exists
Access road construction is scheduled for completion simultaneously with the start-up of plant operations. The access road is not intended to serve as a haul road during plant construction. Before VDOT can act on a particular proposal, a resolution from the local governing body requesting the allocation of access road funds must be submitted to the department through the office of the local resident engineer. This resolution must address the commitment of rightof-way, environmental analysis and any mitigation or adjustments to utilities (at no cost to the program). It also must describe the extent of private investment made by the industry. The maximum award for an industrial access road is $300,000. However, the state will fund an additional $150,000 if the amount is matched on a dollar-for-dollar basis from sources other than the Department of Transportation. The amount of the award is based on the eligible capital investment of the company. Rail Industrial Access The Rail Industrial Access Program provides funds to construct railroad tracks to new or substantially expanded industrial and commercial projects having a positive impact on economic development in Virginia. Financial assistance to any one county, city, or town is limited to $450,000 in one fiscal year, and the locality may utilize the entire allocation for one project. The state program will provide a maximum of $300,000 in unmatched funds. Additional funds up to the annual limit must be matched on a dollar-for-dollar basis. Funds may be used to construct, reconstruct, or improve part or all of the necessary tracks and related facilities on public or private property. Funds may not be used for right of way acquisition or adjustment of utilities. Each application must be accompanied by a resolution from the local governing body requesting the allocation of the funds.
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Business Climate 
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