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The Strategic Role of Virginia Enterprise Zone Grants in Business Growth

Article

December 6, 2024

Last Updated: March 5, 2026

In the competitive landscape of business, finding strategic avenues for growth is essential. For businesses operating in Virginia, Virginia Enterprise Zone (VEZ) grants present a unique opportunity to catalyze expansion and drive success. This roadmap outlines how businesses can leverage recently expanded VEZ grants as a cornerstone for growth, offering a step-by-step guide from grasping the basics to developing tailored strategies, all while emphasizing the indispensable role of accounting professionals as trusted navigators on this journey.

What Are Virginia Enterprise Zone (VEZ) Grants?

VEZ grants are state-administered incentives designed to stimulate economic growth and job creation within 45 designated areas across Virginia, covering parts of 20 cities, 34 counties and 12 towns. Last year, over $13 million in cash funds from the state were disbursed as grants providing substantial financial benefits through Real Property Investment Grants (RPIG) and Jobs Creation Grant (JCG), thereby reducing the financial burden on businesses and encouraging expansion.

For 2026 VEZ grants, applications are due April 1, and the RPIG now has a new $300,000 grant cap for projects greater than $20M in total spend. Understanding the eligibility criteria and the specific benefits associated with these grants is the first step for any business seeking to capitalize on this opportunity.

Virginia Real Property Investment Grant vs. Virginia Jobs Creation Grants

Real Property Investment Grant	Jobs Creation Grants
These grants offer financial support for businesses investing in real estate improvements within enterprise zones. The grant amount is based on the level of investment and can significantly offset renovation and construction costs.	Designed to incentivize employment growth, these grants provide businesses with financial rewards for creating new full-time positions. The grants focus on quality job creation, with an emphasis on sustainable employment opportunities.
Eligible Properties: Business must be located within the boundaries of an enterprise zone The building or facility (co-located group of buildings) must be commercial (including office), industrial or mixed-use (>=30% sqft. non-residential) Eligible Investments: Rehabilitation of existing buildings of $100,000 or more New construction of $500,000 or more All projects must be placed in service in the grant year (certificate of occupancy, final building inspection) Eligible Investors: Must be the owner who capitalizes the asset or deducts the investment as a business expense Does not have to be the occupant or user of the building or facility Tenants are eligible with landlord approval	Eligible Jobs: Business and its eligible employees must be located and working within the boundaries of an enterprise zone The business must create more than four net new permanent full-time positions over the base year Base year can be either of the two calendar years preceding the initial grant year application (For grant year 2025, a base year of 2024 or 2023 should be used for first time applicants) Positions must meet minimum wage and health benefit requirements 150% of the higher of the federal or state minimum wage ($18.00/hour) 50% employer coverage of health premiums offered (employees may choose to waive coverage and maintain grant eligibility) Jobs cannot be in personal service, food and beverage or retail positions Employers must offer health benefits to all eligible employees and cover at least 50% of the total employee health premium cost
Grant Calculation: 20% of costs over the minimum thresholds ($100,000 rehab or $500,000 new construction) Maximum: $100,000 grant for projects less than $5 million; $200,000 grant for projects more than $5 million; $300,000 for projects more than $20 million Caps apply over a five-year period, after which time eligibility of the property resets	Grant Calculation: $500 or $800 per net new permanent full-time position filled during year based on wage rate Maximum 350 new positions per year ($280,000 annual grant) Grant terms last for five years Maintained employment over the base year Employment is eligible for grant awards annually over the five-year period
Grant Requirements: CPA Attestation Applications are due April 1 for the preceding grant year (April 1, 2026, for grant year 2025 applications)	Grant Requirements: Applicant completion of JCG Worksheet CPA Attestation (exceptions apply) Applications are due April 1 for the preceding grant year (April 1, 2026, for grant year 2025 applications)
RPIG Manual GY2025 Real Property Investment Grant Instruction Manual	JCG Manual GY2025 Job Creation Grant Instruction Manual

Real Property
Investment Grant

Jobs Creation
Grants

These grants offer financial support for businesses investing in real estate improvements within enterprise zones. The grant amount is based on the level of investment and can significantly offset renovation and construction costs.

Designed to incentivize employment growth, these grants provide businesses with financial rewards for creating new full-time positions. The grants focus on quality job creation, with an emphasis on sustainable employment opportunities.

Eligible Properties:

Business must be located within the boundaries of an enterprise zone
The building or facility (co-located group of buildings) must be commercial (including office), industrial or mixed-use (>=30% sqft. non-residential)

Eligible Investments:

Rehabilitation of existing buildings of $100,000 or more
New construction of $500,000 or more
All projects must be placed in service in the grant year (certificate of occupancy, final building inspection)

Eligible Investors:

Must be the owner who capitalizes the asset or deducts the investment as a business expense
- Does not have to be the occupant or user of the building or facility
Tenants are eligible with landlord approval

Eligible Jobs:

Business and its eligible employees must be located and working within the boundaries of an enterprise zone
The business must create more than four net new permanent full-time positions over the base year
Base year can be either of the two calendar years preceding the initial grant year application (For grant year 2025, a base year of 2024 or 2023 should be used for first time applicants)
Positions must meet minimum wage and health benefit requirements
- 150% of the higher of the federal or state minimum wage ($18.00/hour)
- 50% employer coverage of health premiums offered (employees may choose to waive coverage and maintain grant eligibility)
Jobs cannot be in personal service, food and beverage or retail positions
Employers must offer health benefits to all eligible employees and cover at least 50% of the total employee health premium cost

Grant Calculation:

20% of costs over the minimum thresholds ($100,000 rehab or $500,000 new construction)
Maximum: $100,000 grant for projects less than $5 million; $200,000 grant for projects more than $5 million; $300,000 for projects more than $20 million
Caps apply over a five-year period, after which time eligibility of the property resets

Grant Calculation:

$500 or $800 per net new permanent full-time position filled during year based on wage rate
Maximum 350 new positions per year ($280,000 annual grant)
Grant terms last for five years
- Maintained employment over the base year
- Employment is eligible for grant awards annually over the five-year period

Grant Requirements:

CPA Attestation
Applications are due April 1 for the preceding grant year (April 1, 2026, for grant year 2025 applications)

Grant Requirements:

Applicant completion of JCG Worksheet
CPA Attestation (exceptions apply)
Applications are due April 1 for the preceding grant year (April 1, 2026, for grant year 2025 applications)

RPIG Manual

GY2025 Real Property Investment Grant Instruction Manual

JCG Manual

GY2025 Job Creation Grant Instruction Manual

How To Qualify and Apply for the Virginia Enterprise Zone Grants

Once a business understands the basics, the next step is to navigate the qualification and application process. Here, businesses must ensure they meet the eligibility criteria and prepare comprehensive applications that highlight their potential for growth and contribution to the local economy:

Eligibility Criteria: Businesses must operate within a designated enterprise zone and meet specific investment and job creation thresholds. Understanding these criteria thoroughly is crucial to determining eligibility.
Application Process: Successful applications require meticulous documentation and accurate records of investments and job creation efforts.

It’s important to note that businesses can apply for both the RPIG and JCG grants for the same project if the necessary eligibility requirements, as noted in the table above, are met.

Maximizing the Impact of VEZ Grants: 4 Strategic Considerations

With a solid understanding of the basics and a roadmap for application, businesses should focus on crafting strategies that maximize the impact of VEZ grants. This involves aligning business goals with grant benefits to drive sustainable growth.

Understand Industry-specific Benefits

While VEZ grants offer potential advantages to any business operating within a designated enterprise zone, real estate developers/owners and industrial manufacturing companies are particularly well-positioned to reap significant benefits due to their unique needs and the nature of the incentives provided. Understanding which sectors stand to gain the most can help businesses and stakeholders strategically align their efforts to maximize these opportunities.

	Real Estate Developers		Industrial Manufacturers
Monetary incentives can reduce costs for developing properties and enhance overall project cash flow by allowing developers to recoup investments in real property.		Industrial manufacturers can benefit from investment incentives property and investments, which make these zones attractive for expansion or new operations. Additionally, job creation credits incentivize manufacturers to create jobs, aligning with the goals of economic growth and community revitalization within enterprise zones.

Plan Strategic Investments

Businesses should plan investments strategically to maximize grant benefits. This might involve timing investments to coincide with grant cycles, structuring projects to meet eligibility requirements, and applying for both RPIG and JCG for the same project. Additionally, companies can leverage local incentives, such as fee waivers or tax abatements or business loans, to support growth initiatives.

Additionally, businesses located in the Tobacco Region and the Technology Zones, state and local governments may offer cash grants, special zoning treatments, and various tax incentives on a project-by-project basis.

Businesses that use the Port of Virginia may be eligible for a grant up to $500,000. Funding may also be available for the economic development of road and rail access.

Create Workforce Development Initiatives

To capitalize on job creation grants, businesses can develop workforce initiatives that align with the grant’s goals. This could include training programs, partnerships with local educational institutions, and strategies to attract and retain top talent and skilled laborers.

Furthermore, businesses that invest at least $1 million in capital and create 25 or more full-time positions within 12 months — with each position paying a minimum of 135% of the federal minimum wage — may be eligible for a cash grant ranging from $500 to $900 per net new job. Existing businesses investing a minimum of $50,000 in capital and retraining five full-time employees (for companies with fewer than 250 employees) may also qualify. For existing businesses employing more than 250 employees company-wide, eligibility extends to those making a minimum capital investment of $500,000 and retraining at least ten full-time positions.

In addition, large manufacturers may be eligible for an income tax credit equal to 30% of qualified retraining expenses.

Virginia provides a variety of tax credits to businesses that are expanding or engaging in specific activities. Examples include:

The $1,000 per job credit for major business facilities that create at least 25 jobs
The research and development credit that may be refundable
The port volume increase tax credit
The barge and rail usage credit
The international trade facility credit, which may be allowed for either capital investment or job creation

These credits serve as valuable tools to help companies reduce their tax liability within the state. Lastly, the Governor may use the "deal closing fund" to offer incentives when Virginia competes with other states for business projects. Companies must meet minimum requirements for jobs, salaries, and capital investment, which differ by county.

Navigate With Professional Assistance

Accounting professionals play a pivotal role in navigating the complexities of VEZ grants. Their knowledge and experience allow businesses to maximize their grant benefits while maintaining compliance with regulatory requirements.

Accurate documentation is essential for successful grant applications and compliance. Accounting professionals help ensure that all financial records are meticulously maintained and presented, reducing the risk of errors and enhancing application success. Cherry Bekaert is experienced in providing the following services to assist clients leverage VEZ grants, including both RPIG and JCG:

Required CPA AUP Attestation
Assistance in preparing application and all supporting supplemental schedules
State and locality coordination for application requirements

Cherry Bekaert Can Help You Turn Opportunity Into Growth

VEZ grants provide a powerful opportunity for businesses aiming to unlock their growth potential. By grasping the fundamentals, navigating the application process, crafting tailored strategies, and leveraging the professional assistance of accounting professionals, businesses can transform these opportunities into tangible growth.

Reach out to our Audit and Attestation Services team of advisors today to discover your eligibility and how we can help you maximize these incentives to propel your business forward. Contact us for a consultation and take the first step toward realizing your business's full potential with the support of Virginia's enterprise initiatives.

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