{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/59.1-548.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/59.1-548.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/59.1-548.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/59.1-548.html"}],"law_id":70661,"edition_id":1,"section_id":70661,"structure_id":15032,"section_number":"59.1-548","catch_line":"Enterprise zone real property investment grants","history":"2005, cc. 863, 884; 2007, cc. 242, 287; 2009, cc. 207, 271; 2017, c. 451; 2025, c. 250.","full_text":"A\n\nAs used in this section:\n\t\t\t“Facility” means a complex of buildings, co-located at a single physical location within an enterprise zone, all of which are necessary to facilitate the conduct of the same trade or business. This definition applies to new construction as well as to the rehabilitation and expansion of existing structures.\n\t\t\t“Major qualified zone investor” means a qualified zone investor making qualified real property investments in excess of $20 million.\n\t\t\t“Mixed use” means a building incorporating residential uses in which a minimum of 30 percent of the useable floor space will be devoted to commercial, office, or industrial use.\n\t\t\t“Qualified real property investment” means the amount expended for improvements to rehabilitate, expand, or construct depreciable real property placed in service during the calendar year within an enterprise zone provided that the total amount of such improvements equals or exceeds (i) $100,000 with respect to a single building or a facility in the case of rehabilitation or expansion or (ii) $500,000 with respect to a single building or a facility in the case of new construction. Such real property may include a child day center as such term is defined in \u00a7 22.1-289.02.\n\t\t\t“Qualified real property investment” includes any such expenditure regardless of whether it is considered properly chargeable to a capital account or deductible as a business expense under federal Treasury Regulations.\n\t\t\t“Qualified real property investment” includes expenditures associated with (a) any exterior, interior, structural, mechanical, or electrical improvements necessary to construct, expand, or rehabilitate a building for commercial, industrial, or mixed use; (b) excavations; (c) grading and paving; (d) installing driveways; and (e) landscaping or land improvements. “Qualified real property investment” includes, but is not limited to, costs associated with demolition, carpentry, sheetrock, plaster, painting, ceilings, fixtures, doors, windows, fire suppression systems, roofing, flashing, exterior repair, cleaning, and cleanup.\n\t\t\t“Qualified real property investment” does not include:1\n\nThe cost of acquiring any real property or building.2\n\nOther costs including: (i) the cost of furnishings; (ii) any expenditure associated with appraisal, architectural, engineering, surveying, and interior design fees; (iii) loan fees, points, or capitalized interest; (iv) legal, accounting, realtor, sales and marketing, or other professional fees; (v) closing costs, permits, user fees, zoning fees, impact fees, and inspection fees; (vi) bids, insurance, signage, utilities, bonding, copying, rent loss, or temporary facilities incurred during construction; (vii) utility connection or access fees; (viii) outbuildings; (ix) the cost of any well or septic or sewer system; and (x) roads.3\n\nThe basis of any property: (i) for which a grant under this section was previously provided; (ii) for which a tax credit under § 59.1-280.1 was previously granted; (iii) which was previously placed in service in Virginia by the qualified zone investor, a related party as defined by Internal Revenue Code § 267 (b), or a trade or business under common control as defined by Internal Revenue Code § 52 (b); or (iv) which was previously in service in Virginia and has a basis in the hands of the person acquiring it, determined in whole or in part by reference to the basis of such property in the hands of the person from whom it was acquired or Internal Revenue Code § 1014 (a).\n\t\t\t\t“Qualified zone investor” means an owner or tenant of real property located within an enterprise zone who expands, rehabilitates, or constructs such real property for commercial, industrial, or mixed use. In the case of a tenant, the amounts of qualified zone investment specified in this section shall relate to the proportion of the building or facility for which the tenant holds a valid lease. In the case of an owner of an individual unit within a horizontal property regime, the amounts of qualified zone investments specified in this section shall relate to that proportion of the building for which the owner holds title and not to common elements.B\n\n1. Grants shall be calculated at a rate of 20 percent of the amount of qualified real property investment in excess of $500,000 in the case of the construction of a new building or facility.\n\t\t\tGrants shall be calculated at a rate of 20 percent of the amount of qualified real property investment in excess of $100,000 in the case of the rehabilitation or expansion of an existing building or facility.\n\t\t\tFor any qualified zone investor making $5 million or less in qualified real property investment, a real property investment grant shall not exceed $100,000 within any five-year period for any individual building or facility. For any qualified zone investor making more than $5 million, but not more than $20 million in qualified real property investment, a real property investment grant shall not exceed $200,000 within any five-year period for any individual building or facility.2\n\nOn and after July 1, 2025, grants to major qualified zone investors shall be calculated at a rate of 25 percent of the amount of qualified real property investment in excess of $500,000 in the case of the construction of a new building or facility.\n\t\t\t\tOn and after July 1, 2025, grants to major qualified zone investors shall be calculated at a rate of 25 percent of the amount of qualified real property investment in excess of $100,000 in the case of the rehabilitation or expansion of an existing building or facility.\n\t\t\t\tA real property investment grant to a major qualified zone investor shall not exceed $300,000 within any five-year period for any individual building or facility.C\n\nA qualified zone investor shall apply for a real property investment grant in the calendar year following the year in which the property was placed in service.","order_by":null,"text":{"0":{"id":254903,"text":"As used in this section:\n\t\t\t“Facility” means a complex of buildings, co-located at a single physical location within an enterprise zone, all of which are necessary to facilitate the conduct of the same trade or business. This definition applies to new construction as well as to the rehabilitation and expansion of existing structures.\n\t\t\t“Major qualified zone investor” means a qualified zone investor making qualified real property investments in excess of $20 million.\n\t\t\t“Mixed use” means a building incorporating residential uses in which a minimum of 30 percent of the useable floor space will be devoted to commercial, office, or industrial use.\n\t\t\t“Qualified real property investment” means the amount expended for improvements to rehabilitate, expand, or construct depreciable real property placed in service during the calendar year within an enterprise zone provided that the total amount of such improvements equals or exceeds (i) $100,000 with respect to a single building or a facility in the case of rehabilitation or expansion or (ii) $500,000 with respect to a single building or a facility in the case of new construction. Such real property may include a child day center as such term is defined in \u00a7 22.1-289.02.\n\t\t\t“Qualified real property investment” includes any such expenditure regardless of whether it is considered properly chargeable to a capital account or deductible as a business expense under federal Treasury Regulations.\n\t\t\t“Qualified real property investment” includes expenditures associated with (a) any exterior, interior, structural, mechanical, or electrical improvements necessary to construct, expand, or rehabilitate a building for commercial, industrial, or mixed use; (b) excavations; (c) grading and paving; (d) installing driveways; and (e) landscaping or land improvements. “Qualified real property investment” includes, but is not limited to, costs associated with demolition, carpentry, sheetrock, plaster, painting, ceilings, fixtures, doors, windows, fire suppression systems, roofing, flashing, exterior repair, cleaning, and cleanup.\n\t\t\t“Qualified real property investment” does not include:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":254904,"text":"The cost of acquiring any real property or building.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":254905,"text":"Other costs including: (i) the cost of furnishings; (ii) any expenditure associated with appraisal, architectural, engineering, surveying, and interior design fees; (iii) loan fees, points, or capitalized interest; (iv) legal, accounting, realtor, sales and marketing, or other professional fees; (v) closing costs, permits, user fees, zoning fees, impact fees, and inspection fees; (vi) bids, insurance, signage, utilities, bonding, copying, rent loss, or temporary facilities incurred during construction; (vii) utility connection or access fees; (viii) outbuildings; (ix) the cost of any well or septic or sewer system; and (x) roads.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":254906,"text":"The basis of any property: (i) for which a grant under this section was previously provided; (ii) for which a tax credit under § 59.1-280.1 was previously granted; (iii) which was previously placed in service in Virginia by the qualified zone investor, a related party as defined by Internal Revenue Code § 267 (b), or a trade or business under common control as defined by Internal Revenue Code § 52 (b); or (iv) which was previously in service in Virginia and has a basis in the hands of the person acquiring it, determined in whole or in part by reference to the basis of such property in the hands of the person from whom it was acquired or Internal Revenue Code § 1014 (a).\n\t\t\t\t“Qualified zone investor” means an owner or tenant of real property located within an enterprise zone who expands, rehabilitates, or constructs such real property for commercial, industrial, or mixed use. In the case of a tenant, the amounts of qualified zone investment specified in this section shall relate to the proportion of the building or facility for which the tenant holds a valid lease. In the case of an owner of an individual unit within a horizontal property regime, the amounts of qualified zone investments specified in this section shall relate to that proportion of the building for which the owner holds title and not to common elements.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":254907,"text":"1. Grants shall be calculated at a rate of 20 percent of the amount of qualified real property investment in excess of $500,000 in the case of the construction of a new building or facility.\n\t\t\tGrants shall be calculated at a rate of 20 percent of the amount of qualified real property investment in excess of $100,000 in the case of the rehabilitation or expansion of an existing building or facility.\n\t\t\tFor any qualified zone investor making $5 million or less in qualified real property investment, a real property investment grant shall not exceed $100,000 within any five-year period for any individual building or facility. For any qualified zone investor making more than $5 million, but not more than $20 million in qualified real property investment, a real property investment grant shall not exceed $200,000 within any five-year period for any individual building or facility.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"B2"},"5":{"id":254908,"text":"On and after July 1, 2025, grants to major qualified zone investors shall be calculated at a rate of 25 percent of the amount of qualified real property investment in excess of $500,000 in the case of the construction of a new building or facility.\n\t\t\t\tOn and after July 1, 2025, grants to major qualified zone investors shall be calculated at a rate of 25 percent of the amount of qualified real property investment in excess of $100,000 in the case of the rehabilitation or expansion of an existing building or facility.\n\t\t\t\tA real property investment grant to a major qualified zone investor shall not exceed $300,000 within any five-year period for any individual building or facility.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"C"},"6":{"id":254909,"text":"A qualified zone investor shall apply for a real property investment grant in the calendar year following the year in which the property was placed in service.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2"}},"ancestry":[{"id":15032,"edition_id":1,"name":"Enterprise Zone Grant Program","identifier":"49","label":"chapter","depth":2,"order_by":1,"parent_id":12809,"metadata":{},"date_created":"2026-06-26 03:51:38","date_modified":"2026-06-26 03:51:38","permalink":{"id":262545,"object_type":"structure","relational_id":15032,"identifier":"49","token":"59.1\/49","url":"\/59.1\/49\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12809,"edition_id":1,"name":"Trade and Commerce","identifier":"59.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:54","date_modified":"2026-06-26 03:43:54","permalink":{"id":259521,"object_type":"structure","relational_id":12809,"identifier":"59.1","token":"59.1","url":"\/59.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":85120,"structure_id":15032,"section_number":"59.1-538","catch_line":"Short title","url":"\/59.1-538\/","token":"59.1\/49\/59.1-538","metadata":false},{"id":83451,"structure_id":15032,"section_number":"59.1-539","catch_line":"Definitions","url":"\/59.1-539\/","token":"59.1\/49\/59.1-539","metadata":false},{"id":75850,"structure_id":15032,"section_number":"59.1-540","catch_line":"Administration","url":"\/59.1-540\/","token":"59.1\/49\/59.1-540","metadata":false},{"id":78883,"structure_id":15032,"section_number":"59.1-541","catch_line":"Rules and regulations","url":"\/59.1-541\/","token":"59.1\/49\/59.1-541","metadata":false},{"id":59075,"structure_id":15032,"section_number":"59.1-542","catch_line":"Enterprise zone designation","url":"\/59.1-542\/","token":"59.1\/49\/59.1-542","metadata":false},{"id":78862,"structure_id":15032,"section_number":"59.1-542.1","catch_line":"Local incentives; motor sports facilities","url":"\/59.1-542.1\/","token":"59.1\/49\/59.1-542.1","metadata":false},{"id":71306,"structure_id":15032,"section_number":"59.1-543","catch_line":"Local incentives","url":"\/59.1-543\/","token":"59.1\/49\/59.1-543","metadata":false},{"id":73104,"structure_id":15032,"section_number":"59.1-544","catch_line":"Amendment of enterprise zones; redesignation of certain joint enterprise zones","url":"\/59.1-544\/","token":"59.1\/49\/59.1-544","metadata":false},{"id":68273,"structure_id":15032,"section_number":"59.1-545","catch_line":"Application review","url":"\/59.1-545\/","token":"59.1\/49\/59.1-545","metadata":false},{"id":61555,"structure_id":15032,"section_number":"59.1-546","catch_line":"Review and termination of enterprise zones","url":"\/59.1-546\/","token":"59.1\/49\/59.1-546","metadata":false},{"id":57313,"structure_id":15032,"section_number":"59.1-547","catch_line":"Enterprise zone job creation grants","url":"\/59.1-547\/","token":"59.1\/49\/59.1-547","metadata":false},{"id":70661,"structure_id":15032,"section_number":"59.1-548","catch_line":"Enterprise zone real property investment grants","url":"\/59.1-548\/","token":"59.1\/49\/59.1-548","metadata":false},{"id":83391,"structure_id":15032,"section_number":"59.1-549","catch_line":"Policies and procedures for allocation of enterprise zone incentive grants","url":"\/59.1-549\/","token":"59.1\/49\/59.1-549","metadata":false}],"previous_section":{"id":57313,"structure_id":15032,"section_number":"59.1-547","catch_line":"Enterprise zone job creation grants","url":"\/59.1-547\/","token":"59.1\/49\/59.1-547","metadata":false},"next_section":{"id":83391,"structure_id":15032,"section_number":"59.1-549","catch_line":"Policies and procedures for allocation of enterprise zone incentive grants","url":"\/59.1-549\/","token":"59.1\/49\/59.1-549","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/59.1-548\/","history_text":"

This law was first created in 2005. The record of its establishment is cataloged in chapters 863<\/a> and 884<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 4 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2007, chapters 242<\/a> and 287<\/a>; in 2009, chapters 207<\/a> and 271<\/a>; in 2017, chapter 451<\/a>; in 2025, chapter 250<\/a>.<\/p>","references":[{"id":83391,"section_number":"59.1-549","catch_line":"Policies and procedures for allocation of enterprise zone incentive grants","order_by":null,"url":"\/59.1-549\/"}],"refers_to":[{"id":83341,"section_number":"22.1-289.02","catch_line":"Definitions","order_by":null,"url":"\/22.1-289.02\/"},{"id":73671,"section_number":"59.1-280.1","catch_line":"Enterprise zone real property investment tax credit","order_by":null,"url":"\/59.1-280.1\/"}],"permalink":{"id":262591,"object_type":"law","relational_id":70661,"identifier":"59.1-548","token":"59.1\/49\/59.1-548","url":"\/59.1-548\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/59.1-548\/","token":"59.1\/49\/59.1-548","dublin_core":{"Title":"Enterprise zone real property investment grants","Type":"Text","Format":"text\/html","Identifier":"\u00a7 59.1-548","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Facility<\/span>” means a complex of buildings, co-located at a single physical location within an enterprise zone<\/span>, all of which are necessary to facilitate the conduct of the same trade or business. This definition applies to new construction as well as to the rehabilitation and expansion of existing structures.\n\t\t\t“Major qualified zone investor<\/span><\/span>” means a qualified zone investor<\/span> making qualified real property investments<\/span> in excess of $20 million.\n\t\t\t“Mixed use<\/span>” means a building incorporating residential uses in which a minimum of 30 percent of the useable floor space will be devoted to commercial, office, or industrial use.\n\t\t\t“Qualified real property investment<\/span>” means the amount expended for improvements to rehabilitate, expand, or construct depreciable real property placed in service during the calendar year within an enterprise zone<\/span> provided that the total amount of such improvements equals or exceeds (i) $100,000 with respect to a single building or a facility<\/span> in the case of rehabilitation or expansion or (ii) $500,000 with respect to a single building or a facility<\/span> in the case of new construction. Such real property may include a child day center as such term is defined in \u00a7 22.1-289.02<\/a>.\n\t\t\t“Qualified real property investment<\/span>” includes any such expenditure regardless of whether it is considered properly chargeable to a capital account or deductible as a business expense under federal Treasury Regulations.\n\t\t\t“Qualified real property investment<\/span>” includes expenditures associated with (a) any exterior, interior, structural, mechanical, or electrical improvements necessary to construct, expand, or rehabilitate a building for commercial, industrial, or mixed use<\/span>; (b) excavations; (c) grading and paving; (d) installing driveways; and (e) landscaping or land improvements. “Qualified real property investment<\/span>” includes, but is not limited to, costs associated with demolition, carpentry, sheetrock, plaster, painting, ceilings, fixtures, doors, windows, fire suppression systems, roofing, flashing, exterior repair, cleaning, and cleanup.\n\t\t\t“Qualified real property investment<\/span>” does not include: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The cost of acquiring any real property or building. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Other costs including: (i) the cost of furnishings; (ii) any expenditure associated with appraisal, architectural, engineering, surveying, and interior design fees; (iii) loan fees, points, or capitalized interest; (iv) legal, accounting, realtor, sales and marketing, or other professional fees; (v) closing costs, permits, user fees, zoning fees, impact fees, and inspection fees; (vi) bids, insurance, signage, utilities, bonding, copying, rent loss, or temporary facilities incurred during construction; (vii) utility connection or access fees; (viii) outbuildings; (ix) the cost of any well or septic or sewer system; and (x) roads. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The basis of any property: (i) for which a grant under this section was previously provided; (ii) for which a tax credit under § 59.1-280.1<\/a> was previously granted; (iii) which was previously placed in service in Virginia by the qualified zone investor<\/span>, a related party<\/span> as defined by Internal Revenue Code § 267 (b), or a trade or business under common control as defined by Internal Revenue Code § 52 (b); or (iv) which was previously in service in Virginia and has a basis in the hands of the person acquiring it, determined in whole or in part by reference to the basis of such property in the hands of the person from whom it was acquired or Internal Revenue Code § 1014 (a).\n\t\t\t\t“Qualified zone investor<\/span>” means an owner or tenant of real property located within an enterprise zone<\/span> who expands, rehabilitates, or constructs such real property for commercial, industrial, or mixed use<\/span>. In the case of a tenant, the amounts of qualified zone investment specified in this section shall relate to the proportion of the building or facility<\/span> for which the tenant holds a valid lease. In the case of an owner of an individual unit within a horizontal property regime, the amounts of qualified zone investments specified in this section shall relate to that proportion of the building for which the owner holds title and not to common elements. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. Grants shall be calculated at a rate of 20 percent of the amount of qualified real property investment<\/span> in excess of $500,000 in the case of the construction of a new building or facility<\/span>.\n\t\t\tGrants shall be calculated at a rate of 20 percent of the amount of qualified real property investment<\/span> in excess of $100,000 in the case of the rehabilitation or expansion of an existing building or facility<\/span>.\n\t\t\tFor any qualified zone investor<\/span> making $5 million or less in qualified real property investment<\/span>, a real property investment grant shall not exceed $100,000 within any five-year period for any individual building or facility<\/span>. For any qualified zone investor<\/span> making more than $5 million, but not more than $20 million in qualified real property investment<\/span>, a real property investment grant shall not exceed $200,000 within any five-year period for any individual building or facility<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> On and after July 1, 2025, grants to major qualified zone investors<\/span><\/span> shall be calculated at a rate of 25 percent of the amount of qualified real property investment<\/span> in excess of $500,000 in the case of the construction of a new building or facility<\/span>.\n\t\t\t\tOn and after July 1, 2025, grants to major qualified zone investors<\/span><\/span> shall be calculated at a rate of 25 percent of the amount of qualified real property investment<\/span> in excess of $100,000 in the case of the rehabilitation or expansion of an existing building or facility<\/span>.\n\t\t\t\tA real property investment grant to a major qualified zone investor<\/span><\/span> shall not exceed $300,000 within any five-year period for any individual building or facility<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A qualified zone investor<\/span> shall apply for a real property investment grant in the calendar year following the year in which the property was placed in service. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nENTERPRISE ZONE REAL PROPERTY INVESTMENT GRANTS (\u00a7 59.1-548)\n\nA. As used in this section:\n\t\t\t“Facility” means a complex of buildings, co-located at a single\nphysical location within an enterprise zone, all of which are necessary to\nfacilitate the conduct of the same trade or business. This definition applies to\nnew construction as well as to the rehabilitation and expansion of existing\nstructures.\n\t\t\t“Major qualified zone investor” means a qualified zone investor\nmaking qualified real property investments in excess of $20 million.\n\t\t\t“Mixed use” means a building incorporating residential uses in\nwhich a minimum of 30 percent of the useable floor space will be devoted to\ncommercial, office, or industrial use.\n\t\t\t“Qualified real property investment” means the amount expended\nfor improvements to rehabilitate, expand, or construct depreciable real property\nplaced in service during the calendar year within an enterprise zone provided\nthat the total amount of such improvements equals or exceeds (i) $100,000 with\nrespect to a single building or a facility in the case of rehabilitation or\nexpansion or (ii) $500,000 with respect to a single building or a facility in\nthe case of new construction. Such real property may include a child day center\nas such term is defined in \u00a7 22.1-289.02.\n\t\t\t“Qualified real property investment” includes any such\nexpenditure regardless of whether it is considered properly chargeable to a\ncapital account or deductible as a business expense under federal Treasury\nRegulations.\n\t\t\t“Qualified real property investment” includes expenditures\nassociated with (a) any exterior, interior, structural, mechanical, or\nelectrical improvements necessary to construct, expand, or rehabilitate a\nbuilding for commercial, industrial, or mixed use; (b) excavations; (c) grading\nand paving; (d) installing driveways; and (e) landscaping or land improvements.\n“Qualified real property investment” includes, but is not limited\nto, costs associated with demolition, carpentry, sheetrock, plaster, painting,\nceilings, fixtures, doors, windows, fire suppression systems, roofing, flashing,\nexterior repair, cleaning, and cleanup.\n\t\t\t“Qualified real property investment” does not include:\n\n 1. The cost of acquiring any real property or building.\n\n 2. Other costs including: (i) the cost of furnishings; (ii) any expenditure\n associated with appraisal, architectural, engineering, surveying, and interior\n design fees; (iii) loan fees, points, or capitalized interest; (iv) legal,\n accounting, realtor, sales and marketing, or other professional fees; (v)\n closing costs, permits, user fees, zoning fees, impact fees, and inspection\n fees; (vi) bids, insurance, signage, utilities, bonding, copying, rent loss,\n or temporary facilities incurred during construction; (vii) utility connection\n or access fees; (viii) outbuildings; (ix) the cost of any well or septic or\n sewer system; and (x) roads.\n\n 3. The basis of any property: (i) for which a grant under this section was\n previously provided; (ii) for which a tax credit under § 59.1-280.1 was\n previously granted; (iii) which was previously placed in service in Virginia\n by the qualified zone investor, a related party as defined by Internal Revenue\n Code § 267 (b), or a trade or business under common control as defined by\n Internal Revenue Code § 52 (b); or (iv) which was previously in service\n in Virginia and has a basis in the hands of the person acquiring it,\n determined in whole or in part by reference to the basis of such property in\n the hands of the person from whom it was acquired or Internal Revenue Code\n § 1014 (a).\n \t\t\t\t“Qualified zone investor” means an owner or tenant of real\n property located within an enterprise zone who expands, rehabilitates, or\n constructs such real property for commercial, industrial, or mixed use. In the\n case of a tenant, the amounts of qualified zone investment specified in this\n section shall relate to the proportion of the building or facility for which\n the tenant holds a valid lease. In the case of an owner of an individual unit\n within a horizontal property regime, the amounts of qualified zone investments\n specified in this section shall relate to that proportion of the building for\n which the owner holds title and not to common elements.\n\nB. 1. Grants shall be calculated at a rate of 20 percent of the amount of\nqualified real property investment in excess of $500,000 in the case of the\nconstruction of a new building or facility.\n\t\t\tGrants shall be calculated at a rate of 20 percent of the amount of qualified\nreal property investment in excess of $100,000 in the case of the rehabilitation\nor expansion of an existing building or facility.\n\t\t\tFor any qualified zone investor making $5 million or less in qualified real\nproperty investment, a real property investment grant shall not exceed $100,000\nwithin any five-year period for any individual building or facility. For any\nqualified zone investor making more than $5 million, but not more than $20\nmillion in qualified real property investment, a real property investment grant\nshall not exceed $200,000 within any five-year period for any individual\nbuilding or facility.\n\n 2. On and after July 1, 2025, grants to major qualified zone investors shall\n be calculated at a rate of 25 percent of the amount of qualified real property\n investment in excess of $500,000 in the case of the construction of a new\n building or facility.\n \t\t\t\tOn and after July 1, 2025, grants to major qualified zone investors shall\n be calculated at a rate of 25 percent of the amount of qualified real property\n investment in excess of $100,000 in the case of the rehabilitation or\n expansion of an existing building or facility.\n \t\t\t\tA real property investment grant to a major qualified zone investor shall\n not exceed $300,000 within any five-year period for any individual building or\n facility.\n\nC. A qualified zone investor shall apply for a real property investment grant in\nthe calendar year following the year in which the property was placed in\nservice.\n\nHISTORY: 2005, cc. 863, 884; 2007, cc. 242, 287; 2009, cc. 207, 271; 2017, c.\n451; 2025, c. 250.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}