Financial (i.e. Tax) Incentives for Investment Property, Businesses, Commercial & Industrial Real Estate in the US & Virginia
- Adam Garrett
- Nov 25, 2023
- 19 min read
Updated: Apr 15
Image courtesy City of Hampton
While much is said of various incentives available for owner-occupant home buyers, not nearly as much attention is placed on the businesses, non-profits, & others who are looking to invest in real estate & otherwise nationally, on a state level, nor on a local level. Much of the below is also available at the Virginia Economic Development Partnership Incentives page, & some are available at the Virginia Tax Credits page, & it's best to check those sites in addition to the below list due to items below that are not present there & items on each page that are not present here, as well as the most up to date information on those items that are partly or fully replicated below. A prime example of an item not on either page is the Low Income Tax Credit, which has only been available in VA at the federal level since 2010, when the VA portion of the Low Income Tax Credit was repealed.
Nationally Available Programs in at Least a Portion of Most States Including VA:
Low-Income Housing Tax Credit (LIHTC)
Communities of Opportunity Tax Credit (Tax Credits for Section 8 in <10% Poverty Areas)
Historic Rehabilitation Tax Credits (20+%)
"IRS Section 1202 - Capital Gains Tax Exclusion provides a 100% federal capital gains tax exclusion in some small business investing"
Hub Zones (for Small Businesses Seeking Government Contracts)
New Markets Tax Credit (Tax Credits for Investment in Community Development Entities)
CDFI Equitable Recovery Program (for Community Development Financial Institutions)
HUD Opportunity Zones (Equipment, Buildings, Property, and Businesses)
Capital Magnet Fund (for Community Development Financial Institutions & Nonprofit Affordable Housing Organizations to Finance Affordable Housing & Revitalization)
Bank Enterprise Award (for Depository Banks)
Boating Infrastructure Grant (Marinas/Tie Up Facilities)
Clean Vessel Act (CVA) Grant (Marinas/Tie Up Facilities)
Programs Available Throughout Many Locations in VA (or all VA):
City/County Based Tax Incentives for Rehabilitation Available in Many VA Localities
Virginia Enterprise Zones (For Real Property Investment Grant & Job Creation Grant)
Virginia Opportunity Zones (Equipment, Buildings, Property, and Businesses)
Qualified Equity and Subordinated Debt Investments Credit (Providing Loans to Businesses or Buying Equity from Businesses w/ 50% Income Tax Credit!!!)
Commercial and Industrial Sales & Use Tax Exemption (for Equipment Used Directly in Manufacturing and Research and Development Operations)
Commonwealth’s Development Opportunity Fund (COF) (to Secure a Company Location or Expansion in Virginia)
Major Business Facility Job Tax Credit (Companies Locating or Expanding in Virginia)
Virginia Jobs Investment Program (VJIP) (Creating New Jobs or Experiencing Technological Change)
Virginia Talent Accelerator Program (Help w/ Recruitment & Training Solutions)
Specific City/County Programs in SE VA:
Hampton Rock the Block
Related:
Overarching Related:
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