Enterprise Zone Program

Enterprise Zones are specially designated areas across the Commonwealth in which businesses and investors may qualify for grants and other incentives based on job creation and investment. State and local incentives are available. There are 57 enterprise zones currently located throughout the Commonwealth.

The Enterprise Zone Program is designed to stimulate investment and employment opportunity. The Cedarville Enterprise Zone has been established for that purpose in Warren County and is located on US340/522 north of Front Royal. It is sponsored by the Commonwealth of Virginia and the County of Warren and administered by the Economic Development Authority.

The program provides the following local incentives:

Business and Occupational License Fee credits for five years, starting at an 80% credit in the first year declining to a 20% credit in the fourth and fifth year;

Building and Zoning Permit waivers of 50% (excluding electrical fees) for five consecutive years;

A financial grant based upon investment and performance (to be determined by the Economic Development Authority and Warren County); and,

Technical assistance from the Economic Development Authority.

Incentives from the Commonwealth of Virginia include:

Job Creation Grants-Grant Amounts:

Up to $500 per year for each net new permanent full time position earning at least 175 percent of the Federal minimum wage ($7.25/hour) with health benefits.

Up to $800 per year for each net new permanent full time position earning at least 200 percent of the Federal minimum wage ($7.25/hour) with health benefits.

Eligible firms can receive grants for up to 350 positions per year.

A firm can apply for the job creation grants each year of a five-consecutive year grant period in which they meet the qualification criteria.

Qualification Requirements:

Enterprise Zone business that creates at least four net new permanent full time positions.

Any net new permanent full time positions created above these four jobs that earn at least 175 percent of the Federal minimum wage and are offered health benefits may be grant eligible.

Grant eligible positions filled for less than a full calendar year will be prorated based on the number of full months worked.

Retail, personal service, or food and beverage establishments are prohibited from applying for this grant.

Real Property Investment Grants-Grant Amounts:

Up to 30 percent of the total amount of qualified real property investments (qualified hard construction costs) made to a building or facility in an enterprise zone, not to exceed $250,000 within a five consecutive year period.

For qualified real property investments less than $2 million, the grant is capped at $125,000 per building or facility.

For qualified real property investments of $2 million or more, the grant is capped at $250,000 per building or facility.

Qualification Requirements:

This incentive is only available for qualified real property investments made to commercial, industrial, or mixed use buildings or facilities located in a Virginia Enterprise Zone.

For rehabilitation and expansion of existing buildings/facilities, a zone investor must spend at least $50,000 in qualified real property investments.

For new construction, a zone investor must spend at least $250,000 in qualified real property investments.