Financial Incentives & Resources
The Front Royal Warren County Economic Development Authority works with expanding businesses and site selection consultants to customize incentive and financing packages specific to your project.
Working with our partners at the Virginia Economic Development Partnership (VEDP) and with local government, we have a robust and customizable array of incentives to help you ramp up operations in Warren County!
State Incentives
Virginia Jobs Investment Program
The Virginia Jobs Investment Program offers a cash grant to qualified businesses to help offset workforce recruiting and training costs. The grant is between $500 to $1,000 per net new employee hired over a 36 month period. The program also offers recruiting and training resources through the Virginia Community College System and Universities.
Virginia Talent Accelerator Program
The Virginia Talent Accelerator Program offers a turn-key, fully customized workforce recruiting and training solution for qualified businesses at NO COST to the company.
VEDP delivers hands-on training, simulations, broadcast-quality videos, illustrated work instructions, instructor-led classroom sessions, animations, and e-learning modules.
All company-specific materials developed during the project become the property of the client and all proprietary information will be protected by a non-disclosure agreement.
This comprehensive workforce program also offers workforce recruiting and organizational development solutions to qualified companies as well.
Major Business Facilities Jobs Tax Credit
The Major Business Facilities Jobs Tax Credit is a by right tax credit for businesses that offers a $1,000 income tax credit for each new full-time job created over a threshold number of jobs beginning in the first taxable year following the taxable year in which the major business facility commenced or expanded its operations.
Commonwealth Opportunity Fund
The Commonwealth Opportunity Fund offers a cash incentive to businesses investing $5,000,000 in capital investment and 50 net new jobs in a 12 month period.
Virginia Inland Port Incentives
SB 1282: Income tax, state; barge and rail usage tax credit:
- Grants tax credit for usage of barge/rail to move cargo.
- Credit is $25 per TEU
- Credit available for taxable years beginning on 01/01/11 but before 01/01/15
- Credit is available for taxpayers in Virginia
- There is a cap of $1.5 million per fiscal year.
SB 1136: International trade facility tax credit:
- Grants an income tax credit equal to $3,000 for every employee hired by Virginia shippers that results from increased cargo of 10% moving through a Virginia cargo facility OR 2% of any capital investment made by a Virginia shipper to facilitate increased cargo moving through a Virginia cargo facility operated by the VPA.
- Credit available for taxable years beginning on 01/01/11 but before 01/01/15.
- The taxpayer would elect which credit to take.
- There is a cap up to $250,000 in tax credits per fiscal year.
HB 2531 / SB 1481: Virginia Manufacturer’s port volume increase tax credit:
- Tax credit to Virginia taxpayers engaged in manufacturing goods or the distribution of manufactured goods that use Virginia port facilities and increase their port volume by 5% in a single year over their base year port cargo volume
- $50 per TEU
- There is a max cap of $3.2 million in a calendar year and each taxpayer would be limited to $250,000 annually.
Other Incentives
The Virginia Economic Development Partnership offers other incentives as well, based on the type of industry, project metrics and geographic location.
For more information, please contact Chairman Rob MacDougall by email rmacdougall@frwceda.com.
Federal Programs
Intermediary Relending Program (IRP)
This loan program through the USDA offers larger loans in certain circumstances for businesses needing financing for land and building acquisition, machinery and equipment, leasehold improvements and working capital. This program is reserved for companies adding significant numbers of employees and those making sizable capital investments.
For more information, please contact Chairman Rob MacDougall by email rmacdougall@frwceda.com.
USDA Rural Business Enterprise Loan (RBEL)
This low-interest loan program is open to new or existing retail or commercial business targeted to providing goods or services to Warren County residents. Interested businesses can submit an application to the EDA where it will be reviewed by the Small Business Loan Committee. Successful applicants can use the loan proceeds toward equipment and inventory purchases and working capital. A maximum of 25% of loan proceeds may be used for working capital.
For more information, please contact Chairman Rob MacDougall by email rmacdougall@frwceda.com.
Foreign Trade Zone designation
All of Warren County is covered under the Foreign Trade Zone designation.
Foreign Trade Zone (#185) is located on US340/522 North of Front Royal. It is licensed by the U.S. Department of Commerce, Foreign Trade Zones Board, International Trade Association and operated by the Virginia Port Authority.
Benefits of Foreign Trade Zones:
Customs duty and internal revenue taxes are paid only when a firm transfers merchandise from a Foreign Trade Zone to U.S. Customs territory for domestic consumption;
- Goods may be exported from a Foreign Trade Zone free of duty and/or taxes;
- The U.S. Customs Service provides security at the site which results in lower insurance costs;
- If a manufacturer imports parts or raw materials to a facility in the zone and then sells the finished product in the U.S., the manufacturer can choose whether to pay the tariff on the raw materials or the finished product, thus saving on tariff costs; and
- Merchandise can be stored indefinitely and is not subject to quotas.
For more information, please contact Chairman Rob MacDougall by email rmacdougall@frwceda.com.
Opportunity Zone
Warren County has one opportunity zone in the northeast quadrant of Front Royal extending into Warren County. It is Opportunity Zone number 51187020601, and you can see a map of the zone at https://vedp.maps.arcgis.com/apps/webappviewer/index.html?id=bf7c530d8e0240c6a911a4b40fb0a357
An Opportunity Zone is a census tract within a community that is economically underperforming, where new investments may be eligible for preferential tax treatment, thereby spurring private sector investment to increase employment opportunities.
Equity Investors can defer the taxation of certain prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in the QOF is sold or exchanged, or December 31, 2026. If the QOF investment is held for at least 5 years, 10% of the gain that was originally deferred is eliminated completely. If the QOF investment is held for at least 7 years, an additional 5% (15% total) of the original deferred gain is eliminated completely. If the investor holds the QOF investment at least ten years, when the investor sells or exchanges the investment, the investor is eligible to eliminate the gain on the QOF investment from any increase in value of the QOF investment during the investor’s holding period.
For more information on Opportunity Zones, visit https://opportunityzones.hud.gov/investors
Contact us
Local, state, and federal incentives can help mitigate the costs of moving or expanding your business to Warren County. For more information, contact:
Rob MacDougall, Chairman
email: rmacdougall@frwceda.com.
Resources
Local Educational & Mentoring
Industrial Roundtable Meetings
The Front Royal/Warren County Economic Development Authority hosts luncheon meetings for business and industry leaders from our larger employers to discuss issues of interest or concern.
We schedule presentations by business resource providers, employment and training professionals, county government officials and others for discussion of current issues in Warren County and their effects on local industry.
For more information, please contact Chairman Rob MacDougall by email rmacdougall@frwceda.com.
Small Business Development Center
Warren County is fortunate to be served by the Laurel Ridge Small Business Development Center (SBDC). The SBDC offers a wide range of resources for small businesses including counseling, business education programs and access to loan programs through the Small Business Administration.
You can learn more about the resources they offer at https://laurelridgesbdc.org/
Laurel Ridge Community College (LRCC)
Laurel Ridge Community College offers a wide variety of two year degree programs for employees who wish to upgrade their skills for better employment as well as high school graduates.
Businesses looking for qualified workers or for training opportunities for their existing workforce will greatly benefit from the Workforce Solutions division at LRCC. They offer top notch training in everything from IT to CDL Truck Driver Training to Welding and will work with your business to custom design the curricula your employees need to excel
You can learn more about the great resources LRCC offers at https://laurelridgeworkforce.com/
Virginia Career Works
Virginia Career Works has a wealth of resources for employers and businesses in Virginia: https://vcwvalley.com/resources/
Workforce Resources
Workforce Resources are available through Shenandoah Valley Workforce Development Board and Virginia Economic Development Partnership
Mentoring Opportunity Zones Programs
Business1Stop
Business1Stop provides resources for entrepreneurs looking to start their own business in the the state of Virginia : https://bos.sbsd.virginia.gov/