INCENTIVES

A variety of incentives could be available to businesses locating in Isle of Wight County depending on the level of investment or location.  Here are some of the state, federal and local incentives that may be available:

VIRGINIA ENTERPRISE ZONE

In November 2011, the Virginia Department of Housing and Community Development approved a re-designation application to allow for the expansion of the Joint Franklin/Southampton Enterprise Zone to include 2,437.80 acres in Isle of Wight County. The new Isle of Wight zone includes Shirley T. Holland Intermodal Park Phases II and III and a portion of the Isle of Wight/City of Franklin revenue sharing district, which includes the International Paper mill site and the former Franklin Equipment buildings.

  1. Windsor Subzone One is located within Phase II of the Shirley T. Holland Intermodal Park that borders the Town of Windsor. This location is designated for future industrial development in the County’s 2008 Comprehensive Plan.
  2. Windsor Subzone Two is located within Phase III of the Shirley T. Holland Intermodal Park that borders the Town of Windsor. This location is designated for future industrial development in the County’s 2008 Comprehensive Plan.
  3. The Camptown Subzone is located within the existing Franklin-Isle of Wight Revenue Sharing District, and it is contiguous to the existing Franklin-Southampton Enterprise Zone. It includes the International Paper mill property and the former Franklin Equipment property. The County’s 2008 Comprehensive Plan designates the Subzone for planned industrial use.

The Enterprise Zone designation adds another tool to help stimulate the local economy. The state program was created to assist the development and redevelopment of economically distressed areas of Virginia by providing state grant funding for job creation and real property investment within these areas.

VIRGINIA PORT TAX CREDITS

The Port of Virginia is an economic engine that creates 343,000 jobs or 9% of the state’s resident workforce, $13.5 billion of employee compensation, and creates $41.1 billion in total revenue for the state. Source: The Fiscal Year 2006 Virginia Economic and Fiscal Impacts of  Virginia Port Authority Operations, The Mason School of Business Compete Center, College of William and Mary, January 2008. Three tax credits are available to port users. MORE

OTHER STATE INCENTIVES

In support of the Commonwealth’s  pro-business environment, Virginia offers a range of incentives and services to assist business growth and reduce the costs of opening or expanding a business facility within the Commonwealth. Incentives include financial assistance, infrastructure development grants, tax credits and exemptions, customized training and technical support programs.  2011-2012 Virginia Guide to Business Incentives

FOREIGN TRADE ZONE

Phase II of the Shirley T. Holland Intermodal Park, located east of the Town of Windsor, was designated as a Foreign Trade Zone in May 2010.

The Foreign Trade Zone (FTZ) is a federal designation that allows businesses within the zone to defer, reduce or eliminate the payment of U.S. customs duties on imported goods held within the zone. Customs duties are paid only when and if merchandise is transferred into U.S. customs territory. No customs duties are paid on merchandise exported from an FTZ. Duties are not paid on broken or wasted product.

Businesses are allowed to store goods within the zone indefinitely. With special authorization from the FTZ Board, companies are allowed to manufacture products within the zone and pay duties on either the foreign parts used or the finished product, whatever rate is most advantageous. Merchandise may also be moved into the zone for inspection, testing and repair.

While the zone is physically located within the United States, businesses and activities for the purposes of tariff laws and customs entry procedures are treated as being outside the customs territory of the United States. The zone is authorized by the U.S. Foreign Trade Zone Board and operates under the supervision of the U.S. Customs Service and the Virginia Port Authority as Grantee of FTZ No. 20. For more information, contact the U.S. Foreign Trade Zone Board at (202) 482-2862.

LOCAL INCENTIVES

Economic Development Incentive Policy (Industrial Development)

The animating purpose of the Economic Development Incentive Policy and Procedure shall be to enhance the ability of Isle of Wight County to foster and stimulate economic development in the County by inducing new businesses to locate in the County, and existing businesses to remain in the County or to expand their operations. All uses of incentive funds shall be in keeping with this Policy and Procedures and may inure only incidentally to the benefit of private interests.  MORE

Economic Development Incentive Policy (Commercial and/or Mixed-Use Development)

In an effort to stimulate the growth of the commercial and retail industry sector, replace the loss of tax revenue and jobs, curtail the leakage of retail dollars, and diversify the County’s revenue base, the Isle of Wight County Board of Supervisors established a Commercial and/or Mixed-Use Incentive Policy, which applies to the following types of developments:

a. New development consisting of commercial/retail square footage in excess of 80,000 square feet with a minimum net new taxable investment in new construction of $20,000,000.

b. New corporate office development/expansion with an employment base of twenty-five (25) or more new full-time equivalent employees (FTE) and a minimum net new taxable investment of$25,000,000.

c. New multi-family residential developed in conjunction with commercial development, consisting of one hundred (100) or more multi-family residential units and a net new taxable investment of $20,000,000. MORE

Corridor Improvement Grant Program (Newport Development Service District)

The purpose of this program is to encourage owners of property along the major corridors in the Newport Development Service District (NDSD) to make certain improvements, thereby increasing economic growth in that area of Isle of Wight County. The program is jointly administered by the NDSD Revitalization Committee and the Isle of Wight County Industrial Development Authority (IDA). The goals are to stimulate additional property investments along the corridor and to enhance the appearance and economic potential of participating individual businesses and the NDSD corridor as a whole. Grants generally are available for exterior, façade, and site enhancements and other aesthetic improvements. This program is subject to the availability of funds. MORE

Website Development Matching Grant Program

Smithfield Foods recently donated $2,000 to Vectec, a local, non-profit eCommerce center, to provide matching grants to Isle of Wight County businesses for website development. Businesses using Vectec for website design/redesign, updates, search engine optimization, social networking and database and application development can receive up to $500 (not to exceed 50% of the project cost). If your business is in need of these services, please contact Vectec at 757-243-8700 or contact Kristi Sutphin in the County’s Economic Development Department at 757-365-6249 or ksutphin@iwus.net.

Rehabilitated Commercial Real Estate Exemption

This program, administered by the Isle of Wight County Commissioner of Revenue’s office, allows owners of commercial and industrial properties that are at least 30 years old to apply for a five (5) year real estate tax exemption when certain improvements are made to the property. MORE