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Governor Glenn Youngkin recently signed a bill<\/a> that amends Virginia\u2019s enterprise zone real property investment grants program effective July 1, 2025. The most significant change creates an elevated grant tier for a major<\/em><\/strong> qualified zone investor which is a qualified zone investor making qualified real property investment (QRPI) in excess of $20 million. The elevated grant tier allows such investor to calculate its grant at 25% of the amount of QRPI exceeding $500,000 for the construction of a new building or facility, and 25% of the amount of QRPI exceeding $100,000 for the rehabilitation or expansion of an existing building or facility. In addition, a real property investment grant to a major qualified zone investor is capped at $300,000 within a five-year period for any individual or facility.<\/p>\n Under previous law and prior to July 1, 2025, a major qualified zone investor was not defined and an investor with more than $20 million of qualifying costs would compute its grant based on 20% of QRPI exceeding the applicable threshold with a maximum grant of $200,000 available within a five consecutive-year period. On or after July 1, 2025, a qualified zone investor who does not qualify as a major qualified zone investor remains subject to the original investment thresholds, grant cap, and grant calculation as previously featured<\/a>.<\/p>\n Another notable provision included in the bill expands real property to include a child day center<\/a> defined as a child day program offered to (i) two or more children under the age of 13 in a facility that is not the residence of the provider or of any of the children in care or (ii) 13 or more children at any location.<\/p>\n The bill also instructs the Department of Housing and Community Development to partner with the Virginia Economic Development Partnership Authority to review the utilization of currently designated enterprise zones, make recommendations on renewals or termination of such zones, and report its findings by November 1, 2025.<\/p>\n \u00a0<\/p>\n<\/blockquote>\nAdditional program enhancements<\/h3>\n
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