The Virginia Enterprise Zone Program made some changes for the 2019 grant year and the Commonwealth of Virginia increased funds available for applicants (a $1Million dollar increase for 2019) that may benefit your Virginia company if it meets the following requirements, including;
(1) the business is located in a Virginia Enterprise Zone (view Enterprise Zone map), and,
(2) installed solar panels in 2019.
New Investment Limits
Effectively, the minimum investment to qualify for the grant has been reduced IF solar panels were a part of the new construction or rehabilitation cost incurred in 2019. Here are the new limits:
- Old Rule – 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. New Rule – For rehabilitation or expansion projects that included solar panels costing in excess of $50,000, the threshold is reduced to $50,000 rather than $100,000
- Old Rule – For new construction projects, the total amount of improvements must exceed $500,000 in Qualified Real Property Investments for the Qualified Zone Investor to be eligible. For new construction projects that included solar panels costing in excess of $50,000, the threshold is reduced to $450,000.
- For Solar Only projects of at least $50,000 and no more than $100,000, the threshold is $0.
For a more concise presentation of the above, see below:
Minimum Investment Thresholds
- Rehabilitation & Expansion: $100,000 in qualified real property investments
- New Construction: $500,000 in qualified real property investments
- Solar Only ($50,000 to $100,000): $0 in qualified real property investments
- Rehabilitation/Expansion including solar costs of at least $50,000: $50,000 in qualified real property investments
- New Construction including solar costs of at least $50,000: $450,000 in qualified real property investments
If you have any questions regarding the above or have completed rehabilitation and/or expansion during the year and don’t know if the company is located within an EZ, PBMares can help determine if your Virginia company qualifies. Depending on the investment, a company could qualify for a $100,000 or $200,000 cash grant award.
This is very time sensitive as all grant applications are due on or before APRIL 1, 2020 and must be submitted with an agreed-upon procedures report. There are no provisions for an extension of this deadline. In addition, if the opportunity is not taken advantage of in the year your final certificate of occupancy or final building inspection is dated, it is lost.
