In addition to incentives offered through the Governor’s Opportunity Fund and the Virginia Department of Workforce Services’ training and retraining programs, Winchester-Frederick County (WFC) also offers incentives for businesses interested in locating or expanding in Winchester.
TAXES
WFC offers low real estate tax rates compared to surrounding northern Virginia communities. In addition, companies will benefit from no tax on intangible property or inventory.
TAX EXEMPTIONS
Sales tax in Virginia is 5%, one of the nation’s lowest. The following are exempt from sales tax:
- Manufacturer’s purchases used in production (machinery, tools, spare parts, fuels, and raw materials)
- Items purchased for resale by distributors
- Pollution control equipment
- Custom computer software
- Purchases used for research and development
- Services (legal, accounting, advertising, consulting, etc.)
- Manufacturers who invest in certified machinery and equipment for the processing of recyclable materials are eligible for a corporate income tax credit equal to 10 percent of the original total capitalized cost of the equipment.
TAX CREDITS
Companies constructing, renovating, or planning for the acquisition of facilities for the purpose of providing employee childcare may receive a maximum income tax credit of $25,000.
An income tax credit is available for the purchase of clean fuel vehicles and investment in related refueling facilities. The credit is equal to 10% of the IRS allowed deduction.
Companies may receive an income tax credit equal to 30% of all expenditures made by the company for eligible worker retraining. The credit is equal to 10% of the IRS allowed deduction.
Companies making donations to neighborhood organizations conducting approved community assistance programs for impoverished people may receive a tax credit for 45% of the total donation. Activities include emergency assistance, housing assistance, crime prevention programs, job training, and education assistance.
FINANCIAL INCENTIVES FOR QUALIFIED PROJECTS
OVERVIEW
Qualified projects are considered for financial assistance based on total investment, including capital investment, number of jobs, and wage rates. For projects meeting local and state criteria, the EDC will pursue funding assistance from the State of Virginia to further assist the company in the areas of workforce training, land acquisition, construction of industrial roads, or rail access.
FINANCING
Financing for projects can also be considered by the Frederick County Industrial Development Authority with tax-exempt Industrial Revenue Bonds for manufacturing facilities.
ROAD CONSTRUCTION ASSISTANCE
Virginia will assist in constructing roads to sites not currently served by roads through the Industrial Access Road Funds program. The state will assist in constructing rail lines to sites not currently served by rail through the Industrial Rail Access program.
GOVERNOR’S OPPORTUNITY FUND
The Governor’s Opportunity Fund supports economic development projects that create new jobs and investment in accordance with established guidelines. WFC may request a grant, to be paid to the company and matched by the county dollar for dollar.
FAST-TRACK PERMITTING
WFC can also offer fast-track permitting of both site and building plans review should a project need to be expedited. Our proven success with this process has been demonstrated with a number of development projects throughout WFC and can be further outlined upon request.
BUSINESS EXPANSION INCENTIVE FUND (BEIF)
Both Frederick County and Winchester City operate opportunity funds to assist with eligible projects. Eligibility is based on the project scope, including capital investment, number of jobs, and wage levels.
