Virginia Administrative Code › Title 13 - HOUSING › Agency 5 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Chapter 112 - ENTERPRISE ZONE GRANT PROGRAM REGULATION › Part I - Definitions › Section 13VAC5-112-10 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms when used in this chapter
					 shall have the following meanings unless the context clearly indicates
					 otherwise:
"Agreed-upon procedures engagement" means an engagement
					 between an independent certified public accountant licensed by the Commonwealth
					 and the business or zone investor seeking to qualify for Enterprise Zone
					 incentive grants pursuant to § 59.1-549 of the Code of Virginia, whereby
					 the independent certified public accountant, using procedures specified by the
					 department, will test and report on the assertion of the business or zone
					 investor as to their qualification to receive the Enterprise Zone
					 incentive.
"Assumption or acquisition" means, in connection with a
					 trade or business, that the inventory, accounts receivable, liabilities,
					 customer list, and good will of an existing Virginia company has been assumed
					 or acquired by another taxpayer, regardless of a change in federal
					 identification number or employees.
"Average number of permanent full-time employees" means the
					 number of permanent full-time employees during each payroll period of a
					 business firm's taxable year divided by the number of payroll periods. This
					 definition applies only for the purpose of qualifying for Enterprise Zone
					 incentives pursuant to
					 13VAC5-112-20:
1.  In calculating the average number of permanent full-time
					 employees, a business firm may count only those permanent full-time employees
					 who worked at least half of their normal workdays during the payroll period.
					 Paid leave time may be counted as work time.
2.  For a business firm that uses different payroll periods
					 for different classes of employees, the average number of permanent full-time
					 employees of the firm shall be defined as the sum of the average number of
					 permanent full-time employees for each class of employee.
"Base taxable year" means either of two taxable years
					 immediately preceding the first year of qualification, at the choice of the
					 business firm. This definition applies only for the purpose of qualifying for
					 Enterprise Zone incentives pursuant to
					 13VAC5-112-20.
"Base year" means either of the two calendar years
					 immediately preceding a qualified business firm's first year of grant
					 eligibility, at the choice of the business firm.
"Building" means any construction meeting the common
					 ordinarily accepted meaning of the term (building, a usually roofed and walled
					 structure built for permanent use) where (i) areas separated by interior floors
					 or other horizontal assemblies and (ii) areas separated by fire walls or
					 vertical assemblies shall not be construed to constitute separate buildings,
					 irrespective of having separate addresses, ownership, or tax assessment
					 configurations, unless there is a property line contiguous with the fire wall
					 or vertical assembly.
"Business firm" means any corporation, partnership,
					 electing small business (subchapter S) corporation, limited liability company,
					 or sole proprietorship authorized to do business in the Commonwealth of
					 Virginia. This shall also include business and professional organizations and
					 associations whose classification falls under sectors 813910 and 813920 of the
					 North American Industry Classification Systems and that generate the majority
					 of their revenue from customers outside the Commonwealth.
"Capital lease" means a lease that meets one or more of the
					 following criteria and as such is classified as a purchase by the lessee: the
					 lease term is greater than 75% of the property's estimated economic life; the
					 lease contains an option to purchase the property for less than fair market
					 value; ownership of the property is transferred to the lessee at the end of the
					 lease term; or the present value of the lease payments exceed 90% of the fair
					 market value of the property.
"Common control" means those firms as defined by Internal
					 Revenue Code § 52(b).
"Department" means the Department of Housing and Community
					 Development.
"Establishment" means a single physical location where
					 business is conducted or where services or industrial operations are
					 performed.
1.  A central administrative office is an establishment
					 primarily engaged in management and general administrative functions performed
					 centrally for other establishments of the same firm.
2.  An auxiliary unit is an establishment primarily engaged
					 in performing supporting services to other establishments of the same firm.
					 This definition applies only for the purpose of qualifying for Enterprise Zone
					 incentives pursuant to
					 13VAC5-112-110.
"Existing business firm" means a business firm that was
					 actively engaged in the conduct of trade or business in an area prior to such
					 an area being designated as an enterprise zone or that was engaged in the
					 conduct of trade or business in the Commonwealth and relocates to begin
					 operation of a trade or business within an enterprise zone. An existing
					 business firm is also one that was not previously conducted in the Commonwealth
					 by such taxpayer who acquires or assumes a trade or business and continues its
					 operations. This definition applies only for the purpose of qualifying for
					 Enterprise Zone incentives pursuant to
					 13VAC5-112-20.
"Expansion" means an increase in square footage or the
					 footprint of an existing nonresidential building via a shared wall, or
					 enlargement of an existing room or floor plan. Pursuant to real property
					 investment grants this shall include mixed-use buildings.
"Facility" means a complex of buildings, co-located at a
					 single physical location within an enterprise zone, all of which are necessary
					 to facilitate the conduct of the same trade or business. This definition
					 applies to new construction, as well as to the rehabilitation and expansion of
					 existing structures.
"Federal minimum wage" means the minimum wage standard as
					 currently defined by the U.S. Department of Labor in the Fair Labor Standards
					 Act, 29 USC §
											201 et
					 seq. Such definition applies to permanent full-time employees paid on an hourly
					 or wage basis.
"Food and beverage service" means a business whose
					 classification falls under subsector 722 Food Services and Drinking Places of
					 North American Industry Classification System.
"Full month" means the number of days that a permanent
					 full-time position must be filled in order to count in the calculation of the
					 grant amount under
					 13VAC5-112-260. A
					 full month is calculated by dividing the total number of days in calendar year
					 by 12. A full month for the purpose of calculating job creation grants is
					 equivalent to 30.416666 days.
"Grant-eligible position" 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.
"Health benefits" means that at a minimum medical insurance
					 is offered to employees, and the employer shall offer to pay at least 50% of
					 the cost of the premium at the time of employment and annually
					 thereafter.
"High unemployment area" means enterprise zone localities
					 with unemployment rates one and one-half times or more than the state average
					 based on the most recent annualized unemployment data published by the Virginia
					 Employment Commission.
"Household" means all the persons who occupy a single
					 housing unit. Occupants may be a single family, one person living alone, two or
					 more families living together, or any group of related or unrelated persons who
					 share living arrangements. This definition applies only for the purpose of
					 qualifying for Enterprise Zone incentives pursuant to
					 13VAC5-112-20.
"Household income" means all income actually received by
					 all household members older than 16 years of age from the following sources.
					 This definition applies only for the purpose of qualifying for Enterprise Zone
					 incentives pursuant to
					 13VAC5-112-20:
1.  Gross wages, salaries, tips, commissions, etc. (before
					 deductions);
2.  Net self-employment income (gross receipts minus
					 operating expenses);
3.  Interest and dividend earnings; and
4.  Other money income received from net rents, Old Age and
					 Survivors Insurance, social security benefits, pensions, alimony, child
					 support, and periodic income from insurance policy annuities and other
					 sources.
The following types of income are excluded from household
					 income:
1.  Noncash benefits such as food stamps and housing
					 assistance;
2.  Public assistance payments;
3.  Disability payments;
4.  Unemployment and employment training benefits;
5.  Capital gains and losses; and
6.  One-time unearned income.
When computing household income, income of a household
					 member shall be counted for the portion of the income determination period that
					 the person was actually a part of the household.