Local Programs

The City of Lynchburg boasts two Enterprise Zones providing investment incentives covering 4,200 acres of commercial property. In our Enterprise Zones, state and local incentives combine to support existing business expansion and new business relocation. Incentives include cash grants for real estate investments and job creation, along with local benefits for qualifying investments.

Real Property Investment Grant

• Qualified real property investments in a commercial, industrial or mixed-use building or facility within the boundaries of a designated Virginia Enterprise Zone (requires at least 30% commercial space)
• 20% cash grant for real property rehabilitation investments above a $100,000 threshold
• 20% cash grant for new construction investments above a $500,000 threshold
• Grant capped at $100,000 for investments less than $5 million
• Grant capped at $200,000 for investments of $5 million or more

Job Creation Grants

• Cash grant up to $800 per job per year for five years
• Requires creation of five jobs or more
• Requires wages equal to or above 175% of the Federal minimum wage with benefits
• Personal service, retail, food and beverage positions are not eligible
• Grant will be based on the wages paid for those grant eligible positions

Interactive Enterprise Zone Activity Map 

Incentive value in the form of cash, infrastructure improvements or other support as determined by the EDA may be given for eligible capital investments. All taxes generated by capital investment (business personal property, machinery & tools, real estate improvement, etc.) must generate a positive return on investment over a 36-month period, which is subject to verification and the terms of a performance agreement. This program includes a maximum incentive equivalent to 2% of the capital investment up to $10 million or 1% of capital investment over $10 million, with a cap of $350,000.

The Job Creation Grant offers incentive value  in the form of cash, infrastructure improvements or other support as determined by the EDA to support large-scale employment expansion. Grant value may be up to the value of a 2% increase in annual payroll of FTE positions with health benefits if base employment is increased by more than one-third or thirty net-new positions, whichever is greater. This grant opportunity requires an annual payroll audit and a performance agreement.

This tax credit opportunity effects Residential, Multi-Family, and Commercial and Industrial spaces. Effective in January 2018, residential rehabilitation projects will be offered up to 10 years of real estate tax exemption on the improved value of the home. Multi-Family properties, those representing five or more units, will receive eight years of tax exemption. Commercial and Industrial properties will be given up to ten years of tax exemption on the improved value of rehabilitation and renovation. This effort has the potential for job creation for commercial and industrial uses.

For more details, contact the City Assessor at (434) 455-3830 or visit http://www.lynchburgva.gov/real-estate-rehabilitation-and-renovation-program. 

Designed to support small- and medium-scale investments in commercial property within the City of Lynchburg, the Local Redevelopment Program supports a portion of qualified expenditures. Property requires at least 30% commercial use, and a minimum investment of $25,000. Proper permitting is required to qualify, and submitted project costs are verified by final building permit. Application and finalized building permit must be submitted by May 1st for work completed in the previous calendar year (defined as March 1st – February 28th). Funds will be awarded by June 30^th. For more information and application forms, including the Scoring Matrix, please contact the Office of Economic Development at 434-455-4494 or email marjette.upshur@lynchburg.gov.

The Federal Tax Cuts and Jobs Act of 2017 included provisions for a new revitalization tool, the Opportunity Zone and Opportunity Fund. The program will allow investors to receive tax benefits on currently unrealized capital gains by investing those gains in qualified census tracts, or Opportunity Zones. There are four federally-designated zones in the City of Lynchburg. 

For more information on Opportunity Zones in the Commonwealth of Virginia, including an interactive map of designated zones, please visit the Department of Housing and Community Development Map Viewer. You can view Lynchburg’s Zones at https://mapviewer.lynchburgva.gov/ParcelViewer/ and highlighting “Opportunity Zones” on the left sidebar. 

More information from the Department of Housing & Community Development is available here. 

If you are interested in investment in projects or businesses in the City of Lynchburg, please contact Marjette Upshur at marjette.upshur@lynchburgva.gov or (434) 455-4490.