State Enterprise Zone Tax Credits, Federal Enterprise Community Tax Credits and Federal Empowerment Zone Tax Credits
Qualifying businesses can receive general income tax credits for 10 years, a 30% real property tax credit, up to $125,000 and job grants for 3 years of $1,000 per new hire zone residents or $500 for hiring non-zone residents. In addition, Norfolk is the only city in the state to be awarded the prestigious designation as a "Federal Enterprise Community" and in 1999, awarded the joint designation with the City of Portsmouth as a "Federal Empowerment Zone." As a result of this designation, qualified businesses may be eligible for certain Federal Tax Incentives such as "Enterprise Zone Facility Bonds" for capital improvements; Increased Section 179 businesses property deductions; Brownfield Environmental Clean-Up Cost deductions; Welfare-to-Work Tax Credits, Work Opportunity Tax Credits and Qualified Zone Academy Bonds. For additional information call the Department of Development at (757) 664-4338.

Work Opportunity Tax Credit
Effective October 1, 1996, businesses have a new Federal tax incentive, the Work Opportunity Tax Credit (WOTC), to hire youth who reside in empowerment zones or enterprise communities. The maximum credit amount for high-risk youth is $2,100. The maximum credit amount for summer youth is $1,050. For additional information call the Department of Development at (757) 664-4338 or Norfolk Works, Inc. at (757) 623-1111.

Welfare-To-Work Tax Credit
The welfare-to-work tax credit provides businesses with an incentive to hire welfare recipients. The maximum credit is $3,500 per employee in the first year and $5,000 per employee in the second year.

Federal Investment Tax Credit For Certified Historic Rehabilitation
Federal income tax credits are available for 20% of the cost of rehabilitating a certified historic structure, or 10% for non-certified structures built before 1936. Contact the Virginia Department of Historic Resources at (804) 786-3143.

State Tax Credit For Historic Rehabilitation
Legislation approved by the 1996 General Assembly creates a state income tax credit beginning January 1, 1997 for 10% of the cost of rehabilitating a historic structure listed or eligible for listing on the Virginia Landmarks Register, either individually or as a contributing structure in a historic district. The available credit rises to 15% in 1998, 20% in 1999, and caps at 25% in 2000. Credits may be used by individual, partnerships and corporations, and may be carried over for up to five years. (Virginia Department of Historic Resources (804) 786-3143).

Americans With Disabilities Act
Federal tax credits and deductions are available to businesses that make reasonable and necessary expenditures to remove accessibility barriers according to the standards of the ADA. Section 44 of the IRS code allows a credit of up to $5,000 annually for small businesses, while sec. 190 provides for a deduction of up to $15,000 annually for all businesses. Call (757) 664-6108 for more information.

Neighborhood Assistance Act
Businesses can receive a tax credit of 50% of their investment in approved community service projects that benefit low income individuals and areas. Eligible uses include job training and daycare centers, cultural programs, and neighborhood renovations. Credits may also be taken for donations of materials, employees' paid time and services, etc. Maximum credit per year is $175,000. Administered by the Virginia Department of Social Services at (804) 692-1895, (Code of VA, sections 63.1-320 through 325).