                                 CODE OF VIRGINIA

ENTERPRISE ZONE JOB CREATION GRANTS (§ 59.1-547)

A. As used in this section:
			&#8220;Base year&#8221; means either of the two calendar years immediately
preceding a qualified business firm&#8217;s first year of grant eligibility, at
the choice of the business firm.
			&#8220;Federal minimum wage&#8221; means the minimum wage standard as
currently defined by the United States Department of Labor in the Fair Labor
Standards Act, 29 U.S.C. &#xA7; 201 et seq. Such definition applies to permanent
full-time employees paid on an hourly or wage basis. For those permanent
full-time employees filling permanent full-time, salaried positions, the minimum
wage is defined as the employee&#8217;s annual salary divided by 52 weeks per
year divided by 35 hours per week.
			&#8220;Full month&#8221; means the number of days that a permanent full-time
position must be filled in order to count in the calculation of the job creation
grant amount. A full month is calculated by dividing the total number of days in
the calendar year by 12. A full month for the purpose of calculating job
creation grants is equivalent to 30.416666 days.
			&#8220;Grant eligible position&#8221; means a new permanent full-time
position created above the threshold number at an eligible business firm.
Positions in retail, personal service or food and beverage service shall not be
considered grant eligible positions.
			&#8220;Minimum wage&#8221; means the federal minimum wage or the Virginia
minimum wage, whichever is higher. The Department shall determine whichever is
higher for the current calendar year as of December 1 of the prior calendar
year, and its determination shall be continuously in effect throughout the
calendar year, regardless of changes to the federal minimum wage or the Virginia
minimum wage during that year.
			&#8220;Permanent full-time position&#8221; means a job of indefinite duration
at a business firm located within an enterprise zone requiring the employee to
report for work within the enterprise zone; and requiring (i) a minimum of 35
hours of an employee&#8217;s time per week for the entire normal year of the
business firm&#8217;s operation, which &#8220;normal year&#8221; must consist of
at least 48 weeks, (ii) a minimum of 35 hours of an employee&#8217;s time per
week for the portion of the calendar year in which the employee was initially
hired for or transferred to the business firm, or (iii) a minimum of 1,680 hours
per year. Such position shall not include (i) seasonal, temporary or contract
positions, (ii) a position created when a job function is shifted from an
existing location in the Commonwealth to a business firm located within an
enterprise zone, (iii) any position that previously existed in the Commonwealth,
or (iv) positions created by a business that is simultaneously closing
facilities in other areas of the Commonwealth.
			&#8220;Qualified business firm&#8221; means a business firm designated as a
qualified business firm by the Department pursuant to &#xA7; 59.1-542.
			&#8220;Report to work&#8221; means that the employee filling a permanent
full-time position reports to the business&#8217; zone establishment on a
regular basis.
			&#8220;Subsequent base year&#8221; means the base year for calculating the
number of grant eligible positions in a second or subsequent five consecutive
calendar year grant period. If a second or subsequent five-year grant period is
requested within two years after the previous five-year grant period, the
subsequent base year will be the last grant year. The calculation of this
subsequent base year employment will be determined by the number of permanent
full-time positions in the preceding base year, plus the number of threshold
positions, plus the number of grant eligible positions in the final year of the
previous grant period. If a business firm applies for subsequent five
consecutive calendar year grant periods beyond the two years immediately
following the completion of the previous five-year grant period, the business
firm shall use one of the two preceding calendar years as the subsequent base
year, at the choice of the business firm.
			&#8220;Threshold number&#8221; means an increase of four permanent full-time
positions over the number of permanent full-time positions in the base year or
subsequent base year.
			&#8220;Virginia minimum wage&#8221; means the applicable minimum wage as
determined pursuant to the Virginia Minimum Wage Act (&#xA7; 40.1-28.8 et seq.).

B. A business firm shall be eligible to receive enterprise zone job creation
grants for any and all years in which the business firm qualifies in the five
consecutive calendar years period commencing with the first year of grant
eligibility. A business firm may be eligible for subsequent five consecutive
calendar year grant periods if it creates new grant eligible positions above the
threshold for its subsequent base year.

C. The amount of the grant for which a business firm is eligible shall be
calculated as follows:

   1. Either (i) $800 per year for up to five consecutive years for each grant
   eligible position that during such year is paid a minimum of 175 percent of
   the minimum wage and that is provided with health benefits, or (ii) $500 per
   year for up to five years for each grant eligible position that during such
   year is paid less than 175 percent of the minimum wage, but at least 150
   percent of the minimum wage, and that is provided with health benefits. In
   areas with an unemployment rate that is one and one-half times or more the
   state average, or for businesses that are certified under regulations adopted
   by the Director of the Department of Small Business and Supplier Diversity
   pursuant to subdivision 8 of &#xA7; 2.2-1606, the business firm will receive
   $500 per year for up to five years for each grant eligible position that
   during such year is paid at least 125 percent of the minimum wage and that is
   provided with health benefits. Unemployment rates used to determine
   eligibility for the reduced wage rate threshold shall be based on the most
   recent annualized unemployment data published by the Virginia Employment
   Commission. A business firm may receive grants for up to a maximum of 350
   grant eligible jobs annually.

   2. Positions paying less than 150 percent of the minimum wage or that are not
   provided with health benefits shall not be eligible for enterprise zone job
   creation grants.

D. Job creation grants shall be based on a calendar year. The amount of the
grant for which a qualified business firm is eligible with respect to any
permanent full-time position that is filled for less than a full calendar year
shall be prorated based on the number of full months worked.

E. The amount of the job creation grant for which a qualified business firm is
eligible in any year shall not include amounts for grant eligible positions in
any year other than the preceding calendar year. Job creation grants shall not
be available for any calendar year prior to 2005.

F. Permanent full-time positions that have been used to qualify for any other
enterprise zone incentive pursuant to the Enterprise Zone Act (former &#xA7;
59.1-270 et seq.) shall not be eligible for job creation grants and shall not be
counted as a part of the minimum threshold of four new positions.

G. Any qualified business firm receiving a major business facility job tax
credit pursuant to &#xA7; 58.1-439 shall not be eligible to receive an
enterprise zone job creation grant under this section for any job used to
qualify for the major business facility job tax credit.

HISTORY: 2005, cc. 863, 884; 2006, c. 668; 2010, c. 328; 2012, c. 445; 2021, Sp.
Sess. I, c. 402.