By Elizabeth K. Lewis, CPA, Partner
2023 Overview of Grants Available in Virginia Enterprise Zones
What are Real Property Investment Grants?
Real Property Investment Grants (RPIGs) are available for investments made to industrial, commercial, or mixed-use properties located within the boundaries of Enterprise Zones. Grants are available to Qualified Zone Investors in amounts up to 20% of the qualified real property investment, not to exceed $200,000 per building or facility within a five-year period.
RPIG Restrictions
The following entities are prohibited from receiving the RPIG:
- Units of local, state, or federal government (typically FEIN 546)
- Any entity that does not incur the cost of the investment
- Properties that have previously qualified for the RPIG within the current five-year period are listed in the RPIG Award Schedule. Please review the RPIG Award Schedule to verify that your property has not received an RPIG in the past four years. If the property is listed on the Award Schedule, the property may have a cap on future grant requests until the five-year period has passed.
- A Qualified Zone Investor may not apply for the RPIG for investments incurred in a previous grant year.
Eligibility Information
What Properties Qualify? |
The property must be located within the boundaries of an Enterprise Zone. · The building or facility must be commercial, industrial, or mixed-use.
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What Types of Businesses Qualify? |
| Applicant must be the entity that capitalizes the investment on their books or deducts the investment as a business expense under federal Treasury Regulations for tax purposes.
Any Qualified Zone Investor (entity or individual) capitalizing or expensing the costs associated with the real property investment may apply for the RPIG. A Qualified Zone Investor may be a:
Retail, restaurants, non-profit entities, and personal service establishments are eligible for RPIG. |
What Types of Investments Qualify? |
For the rehabilitation or expansion of an existing structure, the total amount of improvements must exceed $100,000 in Qualified Real property Investments (QRPI) for the Qualified Zone Investor to be eligible. For rehabilitation or expansion projects that include solar panels, the threshold is reduced to $50,000.
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Grant Information |
What are the Real Property Investment Grant terms? |
Five-year periods beginning with the first qualification year in which a grant was awarded for the subject building or facility.
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Is there a cap on the amount of a Real Property Investment Grant? |
Grant awards are capped per building/ facility over a five-year term based on the cumulative level of investment starting with the qualification year in which a grant was first awarded.
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How are Real Property Investment Grants calculated? |
The dollar amount of an RPIG is determined by the amount spent on qualified real property investments.
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APPLICATIONS MUST BE SUBMITTED NO LATER THAN 11:59PM, APRIL 3, 2023 (EDT).
For more information on RPIGs, see the Virginia Department of Housing and Community Development’s Real Property Grant Instruction Manual.
If your business is located within the boundaries of an established Enterprise Zone, you may be eligible for a Job Creation Grant. Learn more about the grant and employer requirements in our article, Job Creation Grants: What Employers Need to Know.
About the Author
Elizabeth K. Lewis, CPA, Partner
Elizabeth is part of the Business Assurance & Advisory Services group at Keiter. Her client base consists primarily of private equity and real estate funds and also includes contractors and not-for-profits. Elizabeth specializes in auditing non-registered investment funds and possesses a comprehensive understanding of fund accounting and auditing services. She is also a member of the Firm’s Financial Services and Real Estate and Construction team.
More Insights from Elizabeth K. LewisThe information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
