Virginia Administrative Code › Title 13 - HOUSING › Agency 5 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Chapter 112 - ENTERPRISE ZONE GRANT PROGRAM REGULATION › Part V - Procedures for Qualifying for Real Property Investment Grant › Section 13VAC5-112-340 - Computation of grant amount

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				  For any qualified zone investor, the amount of the grant shall be equal to 20%
				  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. In the case of the
				  rehabilitation or expansion of an existing building or facility grants shall be
				  equal to 20% of the amount of qualified real property investment in excess of
				  $100,000. Beginning on January 1, 2019, the installation of solar panels shall
				  be considered eligible investments for the purposes of the real property
				  investment grant. A qualified zone investor may receive a grant for the
				  installation of solar panels provided that such solar installation investment
				  is in an amount of at least $50,000 and the grant shall be calculated at a rate
				  of 20% of the amount of qualified real property investments in excess of
				  $450,000 in the case of construction of a new building or facility. Grants
				  shall be calculated at a rate of 20% of the amount of qualified real property
				  investment in excess of $50,000 in the case of the rehabilitation or expansion
				  of an existing building or facility. In the case where the grant is awarded
				  based solely on solar investment, the grant shall be calculated at a rate of
				  20% of the amount of total qualified real property investments made in solar
				  installation. For such properties eligible for real property investment grants
				  made solely on the basis of solar installation investments of at least $50,000
				  but not more than $100,000, awards shall not exceed $1 million in aggregate in
				  any fiscal year. Qualified zone investments are defined in subdivisions 1 and 2
				  of this subsection:
1. Qualified zone
				  investments include expenditures associated with (i) any exterior, interior,
				  structural, mechanical, or electrical improvements necessary to construct,
				  expand, or rehabilitate a building for commercial, industrial, or mixed use;
				  (ii) excavations; (iii) grading and paving; (iv) installing driveways; and (v)
				  landscaping or land improvements. These can include costs associated with
				  demolition, carpentry, sheetrock, plaster, painting, ceilings, fixtures, doors,
				  windows, fire suppression systems, roofing, flashing, exterior repair, cleaning
				  and cleanup, and solar panels.
2.
				  Qualified real property investments do not include:
a. The cost of acquiring any real property or
				  building.
b. 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.
c. 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
				  of the Code of Virginia was previously granted; (iii) which was previously
				  placed in service in Virginia by the qualified zone investor, a related party
				  as defined by § 267(b) of the Internal Revenue Code, or a trade or
				  business under common control as defined by § 52(b) of the Internal
				  Revenue Code; or (iv) that 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 § 1014(a) of the Internal Revenue Code.