2023 Overview of Virginia’s Job Creation Grant
In partnership with state and local government, the Virginia Enterprise Zone (VEZ) program encourages job creation and private investment with two grant-based incentives, the Job Creation Grant (JCG) and the Real Property Investment Grant (RPIG).
Businesses operating in economically distressed areas may be eligible for the Job Creation Grant, which provides financial incentives for creating or retaining talent in designated enterprise zones.
About Virginia’s Job Creation Grants
Job Creation Grants are based on net new permanent full-time job creation exceeding a four-job threshold.
- Businesses must be located within the boundaries of an established Enterprise Zone
- In addition to creating at least four net new permanent full-time positions, these positions must meet certain wage and health benefit requirements
- Certain entities and positions are prohibited from applying for JCG awards
- Grant term is five-year period beginning with the first grant year in which JCG funding was awarded
- Employer may apply for a subsequent five-year period given they meet the grant eligibility requirements
- JCG awards are determined by the wages paid and the number of months positions were filled during the Grant Year, calculated as:
- Up to $500 per grant eligible position filled by an eligible employee earning at least 150% (125% in high unemployment areas and SWaM certified businesses) of the federal minimum wage (FMW) who meets all other eligibility requirements (including offered health benefits)
- Up to $800 per grant eligible position filled by an eligible employee earning 175% of the FMW who meets all other eligibility requirements (including offered health benefits)
- Maximum positions eligible for grant consideration is 350 positions per year.
- A CPA must perform attestation/agreed upon procedures on the grant application and be included with the submission to the Virginia Department of Housing and Community Development (DCHD).
- Deadline for submission: APPLICATIONS MUST BE SUBMITTED THROUGH THE SYSTEM NO LATER THAN 11:59PM, APRIL 3, 2023 (EDT).
Which entities are not eligible for JCGs?
- Units of local, state, or federal government
- Other than those classified as:
- NAICS 813910 – Business associations – This industry comprises establishments primarily engaged in promoting the business interests of their members. These establishments may conduct research on new products and services; develop market statistics; sponsor quality and certification standards; lobby public officials; or publish newsletters, books, or periodicals for distribution to their members. Examples – Agricultural organizations (except youth farming organizations, farm granges), Real estate boards, Chambers of commerce, Trade associations, Manufacturers’ associations); and
- NAICS – 813920 – Professional organizations – This industry comprises establishments primarily engaged in promoting the professional interests of their members and the profession as a whole. These establishments may conduct research; develop statistics; sponsor quality and certification standards; lobby public officials; or publish newsletters, books, or periodicals, for distribution to their members.
- Other than those classified as:
- Personal service, food and beverage, and retail
For more information on Job Creation Grants, see the Virginia Department of Housing and Community Development’s Job Creation Instruction Manual.
About the Author
The 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.