2006 Code of Virginia § 59.1-547 - Enterprise zone job creation grants

59.1-547. Enterprise zone job creation grants.

A. As used in this section:

"Base year" means either of the two calendar years immediately preceding aqualified business firm's first year of grant eligibility, at the choice ofthe business firm.

"Federal minimum wage" means the minimum wage standard as currently definedby the United States Department of Labor in the Fair Labor Standards Act, 29U.S.C. 201 et seq. Such definition applies to permanent full-time employeespaid on an hourly or wage basis. For those permanent full-time employeesfilling permanent full-time, salaried positions, the minimum wage is definedas the employee's annual salary divided by 52 weeks per year divided by 35hours per week.

"Full month" means the number of days that a permanent full-time positionmust be filled in order to count in the calculation of the job creation grantamount. A full month is calculated by dividing the total number of days inthe calendar year by 12. A full month for the purpose of calculating jobcreation grants is equivalent to 30.416666 days.

"Grant eligible position" means a new permanent full-time position createdabove the threshold number at an eligible business firm. Positions in retail,personal service or food and beverage service shall not be considered granteligible positions.

"Permanent full-time position" means a job of indefinite duration at abusiness firm located within an enterprise zone requiring the employee toreport for work within the enterprise zone; and requiring (i) a minimum of 35hours of an employee's time per week for the entire normal year of thebusiness firm's operation, which "normal year" must consist of at least 48weeks, (ii) a minimum of 35 hours of an employee's time per week for theportion of the calendar year in which the employee was initially hired for ortransferred to the business firm, or (iii) a minimum of 1,680 hours per year.Such position shall not include (i) seasonal, temporary or contractpositions, (ii) a position created when a job function is shifted from anexisting location in the Commonwealth to a business firm located within anenterprise zone, (iii) any position that previously existed in theCommonwealth, or (iv) positions created by a business that is simultaneouslyclosing facilities in other areas of the Commonwealth.

"Qualified business firm" means a business firm designated as a qualifiedbusiness firm by the Department pursuant to 59.1-542.

"Report to work" means that the employee filling a permanent full-timeposition reports to the business' zone establishment on a regular basis.

"Subsequent base year" means the base year for calculating the number ofgrant eligible positions in a second or subsequent five consecutive calendaryear grant period. If a second or subsequent five-year grant period isrequested within two years after the previous five-year grant period, thesubsequent base year will be the last grant year. The calculation of thissubsequent base year employment will be determined by the number of permanentfull-time positions in the preceding base year, plus the number of thresholdpositions, plus the number of grant eligible positions in the final year ofthe previous grant period. If a business firm applies for subsequent fiveconsecutive calendar year grant periods beyond the two years immediatelyfollowing the completion of the previous five-year grant period, the businessfirm shall use one of the two preceding calendar years as the subsequent baseyear, at the choice of the business firm.

"Threshold number" means an increase of four permanent full-time positionsover the number of permanent full-time positions in the base year orsubsequent base year.

B. A business firm shall be eligible to receive enterprise zone job creationgrants for any and all years in which the business firm qualifies in the fiveconsecutive calendar years period commencing with the first year of granteligibility. A business firm may be eligible for subsequent five consecutivecalendar year grant periods if it creates new grant eligible positions abovethe threshold for its subsequent base year.

C. The amount of the grant for which a business firm is eligible shall becalculated as follows:

1. Either (i) $800 per year for up to five consecutive years for each granteligible position that during such year is paid a minimum of 200 percent ofthe federal minimum wage and that is provided with health benefits, or (ii)$500 per year for up to five years for each grant eligible position thatduring such year is paid less than 200 percent of the federal minimum wage,but at least 175 percent of the federal minimum wage, and that is providedwith health benefits. A business firm may receive grants for up to a maximumof 350 grant eligible jobs annually.

2. Positions paying less than 175 percent of the federal minimum wage or thatare not provided with health benefits shall not be eligible for enterprisezone job creation grants.

D. Job creation grants shall be based on a calendar year. The amount of thegrant for which a qualified business firm is eligible with respect to anypermanent full-time position that is filled for less than a full calendaryear shall be prorated based on the number of full months worked.

E. The amount of the job creation grant for which a qualified business firmis eligible in any year shall not include amounts for grant eligiblepositions in any year other than the preceding calendar year. Job creationgrants shall not be available for any calendar year prior to 2005.

F. Permanent full-time positions that have been used to qualify for any otherenterprise zone incentive pursuant to former 59.1-270 through 59.1-284.01shall not be eligible for job creation grants and shall not be counted as apart of the minimum threshold of four new positions.

G. Any qualified business firm receiving an enterprise zone job creationgrant under this section shall not be eligible for a major business facilityjob tax credit pursuant to 58.1-439.

(2005, cc. 863, 884; 2006, c. 668.)