Chesapeake Economic Development- Incentives
City of Chesapeake Economic Development Investment Program
Incentive programs are based on job creation, wages and company investment. The program offers economic development grants to qualifying companies seeking either to locate a new facility to Chesapeake, or to expand an existing operation within the City. The program is geared toward targeted industries that are technologically innovative, provide a strong potential for sustained growth, offer high quality jobs for their employees and help maintain the City’s diverse economy.
South Norfolk Hub Zone
The HUBZone Empowerment Contracting program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the U.S. Small Business Administration. The program encourages economic development in historically underutilized business zones – “HUBZones” – through the establishment of preferences.
SBA’s HUBZone program is in line with the efforts of both the Administration and Congress to promote economic development and employment growth in distressed areas by providing access to more federal contracting opportunities.
Don’t know if you are in a HUBZone? Check out the HUBZone Map.
South Norfolk Technology Zone
In October 2010, the Chesapeake City Council approved an ordinance to designate the South Norfolk Borough of Chesapeake as a technology zone. This technology zone acts as an overlay district and offers incentives to a new or existing business located within the designated area.
For more information regarding the South Norfolk Technology Zone, please click here or contact the City of Chesapeake Economic Development Department at (757) 382-8040.
Foreign Trade Zone
20 Companies involved in international trade can leverage nearly 1,000 acres of industrial property located in Chesapeake, VA, within Foreign Trade Zone 20 – now one of the largest in the United States at 10,000 acres.
Foreign Trade Zones allow businesses to import, store and process goods and raw materials duty free until they leave the zone for domestic consumption. Companies receive a cost savings by delaying payment of duties or by assembling goods that have a lower duty payment than the sum of their parts. Both the City of Chesapeake and the Port of Hampton Roads are committed to increasing the import/export and manufacturing activities within Foreign Trade Zone 20.
The Virginia Port Authority serves as the grantee of this zone. Visit the Virginia Port Authority’s site for more information on Foreign Trade Zone 20.
Click here to download a Foreign Trade Zone overview
Virginia offers various performance-based incentives for new and expanding companies. The state eagerly works with businesses with incentives designed to target the needs of both the company and the development plans of localities and the state. Some state business incentives include:
- Governor’s Opportunity Fund
Discretionary funds available to the Governor to secure a business location or expansion project for Virginia. Grants are awarded to localities on a local matching basis with the expectation that the grant will result in a favorable location decision for the Commonwealth.
- Virginia Jobs Investment Program (VJIP)
A program that offers customized recruiting and training assistance to companies that are creating new jobs or experiencing technological change. The program is designed to reduce the human resource development cost of new and expanding companies.
- Virginia Investment Partnership Act
The Virginia Investment Partnership (VIP) Grant and the Major Eligible Employer Grant (MEE) are discretionary performance incentives designed to encourage continued capital investment by Virginia companies, resulting in added capacity, modernization, increased productivity, or the creation, development and utilization of advanced technology.
- The Virginia Economic Development Incentive Grant (VEDIG)
The Virginia Economic Development Incentive Grant (VEDIG) is a discretionary performance incentive, designed to assist and encourage companies to invest and create new employment opportunities by locating significant headquarters, administrative or service sector operations in Virginia.
- Sales and Use Tax Exemptions
Virginia offers some of the broadest sales and use tax exemptions in the U.S.
- Property Tax Exemptions
Virginia does not tax intangible property, manufacturers’ inventory, and manufacturers’ furniture, fixtures and corporate aircraft.
- Virginia Small Business Financing Authority (VSBFA)
VSBFA offers programs to provide businesses with access to capital needed for growth and expansion.