Prince William County has created a pro-business climate by expanding its targeted industry sectors, using fast-track permitting for targeted industries, competitive real estate and personal property tax rates, aggressive tax depreciation schedules, and unique local financing opportunities. These, combined with business incentives offered by the Commonwealth of Virginia, make Prince William County a strong competitor for new business in both national and international markets. Click here for a summary of incentives offered by Prince William County and the Commonwealth of Virginia. Please call one of our Business Development Managers to learn more if your business qualifies for any of the state and local incentives lists below.
Prince William County Incentives
The Prince William County Board of Supervisors maintains an opportunity fund to help attract and retain targeted industries. The Board of County Supervisors may authorize the use of these funds upon the recommendation of the Department of Economic Development. Funds may be used for infrastructure improvements, site preparation, workforce services, and/or capital equipment purchases. A Performance Agreement is required.
Prince William County offers expedited permitting and site permitting fee reduction for targeted industries. The expedited permitting reduces County plan review time by 50% and provides a Project Manager in the County Development Services Department who resolves conflicts and ensures quick review.
The County owns approximately 130 acres in Innovation Park which is available for sale to technology and life science companies, corporate headquarters, government contractors, and advanced manufacturing. The land is sold at market rates and the County can reinvest the proceeds of the sale into the project for public infrastructure and site improvements.
Through Water and Sewer Fee Credits, Prince William County can reduce the one-time fees and capacity charges for new connections to the Prince William County Service Authority’s water and sewer lines. These credits are most useful for large water/sewer users in the life sciences and advanced manufacturing sectors. A Performance Agreement is required.
In addition to highly competitive tax rates for business property, Prince William County offers aggressive depreciation schedules for business property. Generally, business property (except for programmable computer equipment and peripherals) is assessed at 85% of its original cost in the year acquired. The percentage decreases in increments of 10% each year thereafter. The depreciation schedule for computer equipment is shown below:
- Year 1: 50% of the original cost
- Year 2: 35% of the original cost
- Year 3: 20% of the original cost
- Year 4: 10% of the original cost
- Year 5: 5% of the original cost
An Industrial Revenue Bond (IRB) is a financing tool created by the Commonwealth of Virginia to promote industry and develop trade by inducing manufacturing, industrial, governmental, non-profit, and commercial enterprises to locate in or remain in Virginia through the issuance of bonds that are tax-exempt for federal income tax purposes and for Virginia income tax purposes. This allows the bonds to generally carry a lower interest rate than conventional financing.
- 501 (c)(3) Facilities
- Medical Facilities
- Certain Waste Disposal Facilities
- Higher Education Facilities
- Multi-Family Housing Facilities
- Government Facilities
- Manufacturing Facilities
Prince William County has six federally designated Opportunity Zones. Private investments in these zones are eligible for preferential tax treatment under certain circumstances. Investors can defer capital gain tax on any gains by investing in a Qualified Opportunity Fund, which invests in the project in the Opportunity Zone.
Prince William County has three (3) HubZones, two along Interstate 95, and one close to Interstate 66. The U.S. Small Business Administration (SBA) designates “Historically Underutilized Business Zones” or “HUBZones” to incentivize the location and growth of small businesses in urban and rural communities. Such businesses gain preferential access to federal procurement opportunities by virtue of their location. The HUBZone program was created in 1997 and is administered by the U.S.SBA.
- Benefits of the HUBZone
- Competitive and sole source contracting
- 10 percent price evaluation preference in full and open contract competitions, as well as subcontracting opportunities.
- The federal government has a goal of awarding 3 percent of all dollars for federal prime contracts to HUBZone-certified small business concerns.
- Eligibility for HUBZone
- Make sure to review the HUBZone Primer to understand the requirements to qualify for the program.
- A business (except tribally-owned concerns) must meet the following criteria:
- It must be a small business by SBAS definition standards; Detailed criteria matched to the North American Industry Classification System (NAICS);
- It must be owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribe;
- Its principal office must be located within a “Historically Underutilized Business Zone,” which includes lands considered “Indian Country” and military facilities closed by the Base Realignment and Closure Act; and
- At least 35% of its employees must reside in a HUBZone.
- If you are eligible, click here to apply.
Commonwealth of Virginia Incentives
The Commonwealth's Development Opportunity Fund is a discretionary financial incentive established to support projects that create new jobs and investments in accordance with certain criteria established by state legislation. Grants are made to the community, which are then passed on to the company after the company achieves specific milestones. The funds may be used for such things as site acquisition and development, workforce training, transportation access, public or private utility extension or capacity development, and construction or build-out of privately owned buildings.
VEDIG is a discretionary cash grant to assist and encourage companies to locate significant headquarters, administrative, or service sector operations in Virginia. VEDIG requires an investment of at least $5 million (or $6,500 per job) plus job creation thresholds ranging between 300-400 jobs depending on wage.
VJIP is an economic development incentive that supports the creation of new jobs and investment in the Commonwealth by offsetting recruiting and training costs for new and expanding companies. Eligibility is limited to growth by qualified companies in these sectors: corporate headquarters, distribution centers, information technology, manufacturing, research and development, and shared service centers. VJIP consists of three initiatives:
- The New Jobs Program (companies with more than 250 people): At least a $1,000,000 investment and 25 new positions that focus on expansions of existing companies or new facility locations.
- The Small Business New Jobs Program (companies with 250 or fewer people): At least a $100,000 investment and 5 new positions which are designed specifically for Virginia companies that have 250 employees or fewer company-wide.
- The Retraining Program is limited to projects by for-profit companies in the manufacturing and distribution center sectors. This program provides services and funding to help them upgrade the skills of their existing employees.
- Companies with 250 employees or less: Retraining 5 full-time employees and making a capital investment of at least $50,000
- Companies with more than 250 employees: Retraining 10 full-time employees and making a capital investment of at least $500,000
SBJGF provides cash reimbursements per job, ranging between $500 and $2,000, plus a variety of free recruiting and training services for new and growing companies. Companies must have 50 employees or less and fall under the following sectors: Corporate HQ, Research and Development, or Information Technology Services to Business, to name a few. Requirements include the creation of 5 new jobs within 24 months and making a capital investment of at least $50,000.
SBJGF also provides support for Virginia companies that are upgrading the Recruitment & Selection skills of their existing workforce.
The Major Business Facility Job Tax Credit is a $1,000 corporate income tax credit per job over a 50 job threshold; the job threshold must be met within a 12-month period and taken in equal installments over a two-year period (i.e. $500 per job per year).
The Commonwealth of Virginia offers six Foreign Trade Zones (FTZs) designed to encourage businesses to participate in international trade by effectively eliminating or reducing customs duties. FTZs allow businesses to defer paying U.S. Customs duties on imported goods held within the zones until the goods enter the United States for domestic consumption. No duties are paid if goods are re-exported. Businesses are allowed to store goods within foreign trade zones for an unlimited period of time. They are also allowed to manufacture products within zones and pay duties at the duty rate of either the foreign parts used or on the finished product, whichever is most advantageous to the company.
- The FTZ serving Prince William County is Washington Dulles FTZ #137. Foreign trade zone #137 consists of approximately 271 acres at Washington Dulles International Airport and the following expansion sites:
- Victory International Warehouse near Washington Dulles
- Collier Industrial Park in Winchester
- A 90,000 square foot warehouse in Stonewall Industrial Park in Winchester, property adjacent to Winchester Airport
- Wrights Run property – 155 acres zoned for light industrial and commercial
- Hazout expansion site west of Dulles Airport. The Grantee of FTZ #137 is Washington Dulles Foreign Trade Zone, Inc.
- Contact: Anita Kayser—703.572.8714
- To learn more, contact a member of the Economic Development Department. We will be happy to assist you.