Enterprise Zone Program
About the Program
South Boston's Enterprise Zone
Program is a Commonwealth of Virginia
economic development program managed by
the Virginia Department of Housing and
Community Development. The state's
Enterprise Zone Program is designed to
offer state and local incentives for
businesses to locate or expand within
designated zone areas. Downtown South
Boston is included within the boundaries
of South Boston's Enterprise Zone. The
two state incentive programs are listed
below and are subject to the
availability of state funding. For more
information, please contact us at (434)
Qualification for the listed incentives is based on the calendar year and administered annually. All applicants (businesses and real properties) must be located within the enterprise zone.
Qualification for the Job Creation Grant (JCG) is based on permanent full-time job creation over a four job threshold, wage rates of at least 175 percent of the Federal minimum wage (150 percent in HUAs*), and the availability of health benefits. Personal service, retail, food and beverage positions are not eligible to receive job creation grants.
Eligibility for the Real Property Investment Grant (RPIG) is based on qualified investments made to commercial, industrial, and mixed-use buildings or facilities located within the boundaries of an enterprise zone. To be eligible for the RPIG, an individual or entity must invest at least $100,000 for rehabilitation or expansion projects and at least $500,000 for new construction projects.
- For more information about state incentive eligibility criteria and grant awards, please reference the Virginia Enterprise Zone Grant Matrix.
Discount on listed sale price of publicly owned sites requiring a minimum taxable capital investment of $1 million and creation of 25 jobs over a 3 year period
Machinery and Tools Investment Grant requiring a minimum net new taxable investment of $50,000 in machinery and tools. This grant amount is awarded for a five-year period based on the tax increase for the payout year as follows: 100% the first year, 80% the second year, 60% the third year, 40% the fourth year, and 20% the fifth year.
Furniture, Fixtures, and Equipment Grant available to non-manufacturers with a minimum net new taxable investment of $50,000 in furniture, fixtures, and equipment. This grant is awarded for a five-year period based on the tax increase for the payout year as follows: 100% the first year, 80% the second year, 60% the third year, 40% the fourth year, and 20% the fifth year. Recipient businesses of the Halifax Opportunity Fund are ineligible to receive this incentive.
Real Property Rehabilitation Tax Assessment Relief for demolition, removal, renovation, preservation, and/or redevelopment of blighted structures in the zone. . Qualifying projects in Town of South Boston must increase the assessed value of the real property by at least $65,000. Structures must be a minimum of 15 years old. Demolition and/or removal are not allowed in the Historic District of the Town of South Boston. This program reduces taxes payable on the rehabilitated property for five succeeding years.
Business and Professional License Fee Rebate available to new businesses in the zone or expanding existing businesses increasing and maintaining full time employment by at least 10%. This rebate based on the following schedule: 100% the first year, 80% the second year, 60% the third year, 40% the fourth year, and 20% the fifth year.
Utility Tax Rebate on Electricity and Natural Gas available to new businesses in the zone or expanding existing businesses increasing and maintaining full time employment by at least 10%. This rebate is based on the following schedule: 100% the first year, 80% the second year, 60% the third year, 40% the fourth year, and 20% the fifth year.
Building Permit Fees Partial Exemption from local building permit fees above the minimum fees charged for each individual permit. This incentive is automatic upon permit application for initial construction or expansion;
Hospitality Stimulus Program offers a grant payable for a maximum of 5 years to businesses creating and maintaining a minimum of 10 full-time hospitality-related new jobs in the zone and creation of an increase in the aggregate collection of hospitality taxes over the previous year (Food/Beverage, Town Occupancy, or County Transient Occupancy taxes paid to the county or town). The grant payment is based on a percentage of the aggregate increase of hospitality taxes paid or of the individual business' collections, whichever is LESS. Grant funds may be utilized to offset the following expenses: 1) extension of publicly-owned infrastructure to the project site; 2) land acquisition; or 3) site improvements. This incentive is only available when the county unemployment rate is 125% above the Virginia average unemployment rate;
Free Chamber of Commerce Membership available to new enterprises locating in the Enterprise Zone and for non-Chamber enterprises expanding their operations in the zone. Expansions would include addition of jobs and/or investment.
District Tax Credits
About Tax Credits
State and federal tax credits for
approved renovation and restoration of
historic buildings at least 50 years old
located in the South Boston Historic
Rehabilitation Tax Credits
Properties must produce income to
qualify for the federal tax credits.
The federal historic rehabilitation
tax credit is a dollar-for-dollar
reduction of federal income tax
liability and is calculated as a
percentage of the eligible
rehabilitation expenses for a
substantial rehabilitation project.
Certified rehabilitations will
qualify investors for a 20% tax
credit. Rehabilitations of
non-historic buildings built before
1936 can qualify investors for a 10%
Properties do not need to produce
income to qualify for state tax
credits. To qualify for a state tax
credit a historic structure must be
certified by the Virginia Department
of Historic Resources. Certified
rehabilitations will qualify
investors for a 25% tax credit.
Contact: Virginia Department of
Historic Resources (804) 367-2323
www.dhr.virginia.gov 2801 Kensington
Ave. Richmond, VA 23221
Improvement Grant Program
The Façade Grant Program is designed
to provide financial assistance for
improvement projects to the front
facades of commercial properties in the
Virginia Main Street (VMS) District in
Downtown South Boston, Virginia. The
Façade Grant Program is designed to
restore, improve or create historic
architectural features based on the
document entitled “Keeping Up
Appearances” (KUA) adopted by Town
Council in April 2009. Funding for the
program is provided by DDSB and
administered by DDSB.
Commercial buildings located in the
VMS Business District are eligible to
apply for grant funding. If the
application is made by a tenant, the
property owner must give written
permission and sign an agreement to
maintain the property after work is
The following activities are eligible
expenditures if undertaken in
conjunction with an approved total
- Paint removal from brick
surfaces by gentle methods such as
chemical washings and scraping
- Repointing masonry
- Repairing cornices, transoms and
other architectural details
- Repair of existing windows and
- Removing false facades and other
- Replacements of signs with
appropriate materials and design
- Canvas-style awnings (Awning
replacement may be eligible as a
stand alone item if the existing
total façade is in good condition.)
- General periodic maintenance is
- The property for which the grant
is to be applied must be physically
located within the downtown district
approved by VMS.
- The building must be inhabitable
at the completion of the project.
- “Keeping Up Appearances”, the
Secretary of the Interior’s Standard
of Rehabilitation and design advice
from the VMS architects will be
followed in evaluating façade
- All plans must be reviewed and
approved by the Design Committee and
Board of Directors of DDSB before
work can begin. There is no
reimbursement for projects started
before receiving grant approval.
- Renovations shall conform to the
building codes required by the Town
of South Boston and all applicable
permits must be obtained.
- Improvements must make a
positive visual impact.
- Grants are issued on a
first-come, first-served basis
subject to funding availability.
- Projects must be completed
within 90-120 days from the approval
- This is a reimbursable grant.
Grant funds will be reimbursed once
work has been completed, inspected,
approved and all copies of all paid
receipts presented to DDSB.
- Property Owner’s labor is not a
reimbursable item. However the
renter’s labor may be included if it
can be shown he was paid by the
- Property owners must sign a
Maintenance Agreement committing to
maintain the property for a period
of 5 years after work is completed.
- Work must be for non-disposable
- Up to 50% of the renovation
costs, not to exceed $1700 will be
reimbursed to the property owner
upon successful completion of the
- Grants are awarded on a
first-come, first-served basis until
funds are depleted.
- Signs are eligible if they are
changed in conjunction with other
Grant applications may be submitted
to DDSB at any time. The award of grants
will begin on June 1st of each year,
based on availability, and continue
until funds are depleted.
- Applicant meets with the
Executive Director of DDSB to review
preliminary renovation plans and
review application requirements.
Applicants may consult with the
Design Committee as needed.
- Applicants submit the completed
grant application, design plans or
sketches, colors and material
samples and contractor costs
proposals to DDSB. Application must
be signed by the property owner.
- Applications will be reviewed by
the Design Committee on a monthly
basis until funds are depleted.
- Upon completion of the project
the Design Committee will inspect
- Proof of expenses and proof of
payment will be submitted to DDSB
- Grant funds will be paid within
30 days of final approval of the
NOTE: This Program is subject
to change or cancellation at anytime by
the DDSB Board of Directors. Any
approved project that is in progress
would not be affected.
Funds for building and property
beautification projects such as facade
improvements, exterior painting,
awnings, and signs.
Contact: Destination Downtown South
Boston, Inc. (434) 575-4209
www.downtownsobo.com 432 Main Street
South Boston, VA 24592
Housing Development Authority Mixed Use
/ Mixed Income Loan Project
Finances the acquisition,
construction, and/or rehabilitation of
low-income housing developments.
Contact: Virginia Housing Development
Authority (877) VHDA-123
www.vhda.com 601 S. Belvedere
St. Richmond, VA 23220
Guarantees up to $500,000 of a loan
or line of credit to reduce risk to
banks or to increase short-term capital.
Contact: Virginia Housing Development
Authority (877) VHDA-123
www.vhda.com 601 S. Belvedere St.
Richmond, VA 23220
Provides loan and investment
solutions for affordable housing and
economic development projects.
Contact: Virginia Community Capital
Cambria St., NE, Christiansburg, VA
Information about State
Rehabilitation Tax Credits:
Information about Federal Historic
Preservation Tax Credits:
Planning Successful Rehabilitation
National Trust for Historic
Destination Downtown South Boston
Maintains list of available
properties, assists with incentives
Contact (434) 575-4209
Industrial Development Authority of
Assists existing and prospective
businesses to grow and provides
incentives and resources.
Contact (434) 572-1734
Town of South Boston
Assists with codes, zoning, sign
Contact (434) 575-4241
Longwood Small Business Development
Offers resources for business
planning including counseling,
training and financing services.
Contact (434) 572-4533
Halifax County Chamber of Commerce
Promotes a thriving community for
their members and provides
Contact (434) 572-3085