Financial Incentives & Resources

Front Royal and Warren County have designated many different economic Incentive Zones to promote different types of business development. In addition, an area of Warren County has qualified as a federal Opportunity Zone.

The purpose of the technology zone is to foster high quality job creation and investment by technology related businesses and to grow this important business sector in Front Royal and Warren County. Qualifying businesses include those businesses that engage in computer software, hardware or telecommunication sales, leases, licenses, services for which computers or telecommunications are used to provide sales, leases, licensing or services directly to the customer. Cash reimbursements and cash grants are benefits of establishing your qualifying business in a local Technology Zone.

For more information, please contact Joe Petty 
540-252-0050 or email [email protected]

To qualify for the benefits of the County Technology Zone, a business must create ten full-time jobs paying a minimum of 2.0 times the minimum wage plus a health and benefit plan valued equal to at least 10% of the base wage. The minimum investment is $10,000 in improvements, equipment or machinery. Inventory does not count toward minimum investment.

To qualify for the Town of Front Royal Technology Zone, a business must create three full-time jobs paying a minimum of 2.0 times the minimum wage plus a health and benefit plan valued equal to at least 10% of the base wage. The minimum investment shall be $3,000.

Zone Benefits – Cash Reimbursements

The Economic Development Authority shall provide cash reimbursements for the following local permits and fees up to a maximum cumulative value of $500 for qualified technology zone businesses, provided that the technology business’ application for reimbursement is filed with the Economic Development Authority within the first 12 months of operation within the zone.

• Permit fee grants
• Technology zone application fees
• Building, plumbing, electrical and mechanical permit fees (Warren County)
• Zoning permit fees (Warren County)
• Subdivision application fees (Warren County)
• Business professional and occupational license taxes credit

Zone Benefits – Cash Grants

Qualified technology businesses may be eligible for annual cash grants to be determined on a case-by-case basis by the County of Warren and Town of Front Royal during the negotiation process based on job creation and investment. A minimum of 10 full-time jobs paying at least 2.0 times the minimum wage and benefits as noted above and a minimum investment of $10,000 shall be required to be eligible for cash grants. Notwithstanding the preceding, in the Downtown Technology Zone a minimum of three such full-time jobs and a minimum investment of $3,000 shall be required to be eligible for cash grants.

All Warren County benefits are limited to that portion of the business enterprise created and maintained for and qualified under this technology zone program. For a more detailed description of the provisions and benefits of the Warren County Technology Zone, please refer to County zoning code.

For more information, please contact Joe Petty
540-252-0050 or email [email protected]

The Town of Front Royal offers incentives to businesses that establish themselves in the Front Royal Warren County community whose purpose are to attract visitors to the Town, increase tax revenue, and enhance the general welfare of Town citizens.

There are three designed Tourism Zones in the Front Royal Warren County area. Qualifying businesses include establishments such as retail, dining, and lodging. Investment criteria include a minimum new capital investment of $25,000, a minimum creation of one new (1) job, conformance with the Town’s Comprehensive Plan, and compliance with the Town Code.

For a more detailed description of the provisions and benefits of the local Tourism Zones, please refer to the Town of Front Royal zoning code here. Please contact Joe Petty at 540-252-0050 or email [email protected].

The Virginia Talent Accelerator Program offers a turn-key, fully customized workforce recruiting and training solution for qualified businesses at NO COST to the company. 

VEDP delivers hands-on training, simulations, broadcast-quality videos, illustrated work instructions, instructor-led classroom sessions, animations, and e-learning modules.

All company-specific materials developed during the project become the property of the client and all proprietary information will be protected by a non-disclosure agreement.

This comprehensive workforce program also offers workforce recruiting and organizational development solutions to qualified companies as well.

The Major Business Facilities Jobs Tax Credit is a by right tax credit for businesses that offers a $1,000 income tax credit for each new full-time job created over a threshold number of jobs beginning in the first taxable year following the taxable year in which the major business facility commenced or expanded its operations. 

The Commonwealth Opportunity Fund offers a cash incentive to businesses investing $5,000,000 in capital investment and 50 net new jobs in a 12 month period. 

The Virginia Economic Development Partnership offers other incentives as well, based on the type of industry, project metrics and geographic location.

For more information on all of these incentive and finance programs, please contact Joe Petty 
540-252-0050 or email [email protected]

This low-interest loan program is open to new or existing retail or commercial business targeted to providing goods or services to Warren County residents. Interested businesses can submit an application to the EDA where it will be reviewed by the Small Business Loan Committee. Successful applicants can use the loan proceeds toward equipment and inventory purchases and working capital. A maximum of 25% of loan proceeds may be used for working capital. 

For more information, please contact Joe Petty
540-252-0050 or email [email protected]

All of Warren County is covered under the Foreign Trade Zone designation.

Foreign Trade Zone (#185) is located on US340/522 North of Front Royal. It is licensed by the U.S. Department of Commerce, Foreign Trade Zones Board, International Trade Association and operated by the Virginia Port Authority.

Benefits of Foreign Trade Zones:

Customs duty and internal revenue taxes are paid only when a firm transfers merchandise from a Foreign Trade Zone to U.S. Customs territory for domestic consumption;

• Goods may be exported from a Foreign Trade Zone free of duty and/or taxes;
• The U.S. Customs Service provides security at the site which results in lower insurance costs;
• If a manufacturer imports parts or raw materials to a facility in the zone and then sells the finished product in the U.S., the manufacturer can choose whether to pay the tariff on the raw materials or the finished product, thus saving on tariff costs; and
• Merchandise can be stored indefinitely and is not subject to quotas.

For more information, please contact Joe Petty, Director of Economic Development 
540-252-0050 or email [email protected]

Warren County has one opportunity zone in the northeast quadrant of Front Royal extending into Warren County.  It is Opportunity Zone number 51187020601, and you can see a map of the zone at https://vedp.maps.arcgis.com/apps/webappviewer/index.html?id=bf7c530d8e0240c6a911a4b40fb0a357

An Opportunity Zone is a census tract within a community that is economically underperforming, where new investments may be eligible for preferential tax treatment, thereby spurring private sector investment to increase employment opportunities.

Equity Investors can defer the taxation of certain prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in the QOF is sold or exchanged, or December 31, 2026.  If the QOF investment is held for at least 5 years, 10% of the gain that was originally deferred is eliminated completely. If the QOF investment is held for at least 7 years, an additional 5% (15% total) of the original deferred gain is eliminated completely.  If the investor holds the QOF investment at least ten years, when the investor sells or exchanges the investment, the investor is eligible to eliminate the gain on the QOF investment from any increase in value of the QOF investment during the investor’s holding period.

For more information on Opportunity Zones, visit https://opportunityzones.hud.gov/investors