Roanoke Business Equipment Incentive Program is sponsored by Roanoke Economic Development. Offers matching grants to businesses in Roanoke for equipment purchases to support growth and modernization.

Incentive Programs | Roanoke, VA Create a Website Account - Manage notification subscriptions, save form progress and more. Whether you are building a new building, expanding an existing structure, or increasing your workforce, there are a number of grant and incentive programs for which you may qualify to offset costs associated with your expansion.

Please contact Marc Nelson , Director of Economic Development, to learn more about these programs, and whether or not you would qualify. Business Equipment Incentive Program Business Equipment Incentive Program - New Funding Round Opens October 1, 2025 at 8:00AM Please note, funding for the Business Equipment Incentive Program has been fully allocated for the commercial/retail sector.

On October 1, the City of Roanoke’s Economic Development Authority will open the next round of funding for the Business Equipment Incentive Program. This program helps businesses grow and modernize by offering a 50/50 match on eligible equipment purchases.

Manufacturing & Industrial Sector: Maximum award per business – $20,000 Commercial & Retail Sector: Maximum award per business – $5,000 Funding can be used for equipment that is taxed as Business Personal Property, or subject to the Machinery and Tools Tax.

Additional Equipment Guidelines: Maximum: 10 pieces of equipment per company Motor vehicles are not eligible Recipients of last year's Business Equipment Incentive Program are not eligible to apply for this year's round of funding.

Has operated in a commercially zoned location in the City of Roanoke for at least one year Be current on all City of Roanoke business taxes Hold a valid City of Roanoke business license Manufacturing/Industrial: Employ at least two full-time W-2 employees Retail/Commercial: Employ at least one full-time W-2 employee City of Roanoke Business License for current year (if required to have a business license by the City) Most recent Business Personal Property Tax statement and proof of payment Proof of W-2 employees (payroll records or other official documentation) A list of equipment you plan to purchase, including the estimated cost per item This estimate will determine the potential grant amount.

The program cannot grant more than the amount awarded at the time of application. Upon submission of receipts, if the actual purchase is less than the estimate, your grant award will be 50% of the actual purchase price. In addition, the program will only award grants for the equipment listed on a business' application (varying brands of the equipment at the time of purchase is permittable).

The Economic Development Authority recognizes that the documents submitted in response to 1, 2, and 3 likely contain proprietary information of the applicant. The Authority promises to treat these documents as confidential to the maximum extent permitted by Section 2. 2-3705.

6(3) of the Virginia Freedom of Information Act. Applications will only be accepted through the online application portal that goes live on October 1, 2025 at 8:00 AM. Deadline to Purchase Equipment & Submit Receipts: September 30, 2026 Funding is first come, first served!

Only FULL and COMPLETE applications will be considered with all required documentations attached Please note: Your tax liability for Business Personal Property or Machine and Tools tax, if applicable, will be assessed at the original purchase price excluding any relief awarded from this grant. EG.

A business purchases a $40,000 piece of equipment and receives a $20,000 grant from the EDA, and pays $20,000 out of pocket, the amount you file on your Business Personal Property return for the equipment will remain $40,000. Frequently Asked Questions What equipment expenses qualify as eligible or ineligible? Eligible equipment purchases must be items taxed as business personal property tax or machinery and tools tax.

Motor vehicles are not eligible for this incentive. What documents do I need to submit with my application?

Please include the following documentation with your application: 2025 City of Roanoke Business License (if required to have a business license by the City) Most recent Business Personal Property Tax statement and proof of payment Proof of W-2 employees (payroll records or other official documentation) A list of equipment you plan to purchase, including the estimated cost per item When will I hear back from Economic Development regarding the status of my application?

Funding is awarded on a first come, first served basis. The Department of Economic Development will notify you within one week of application submission. When can I purchase the equipment?

You may purchase the equipment after your grant application is approved. You will receive an email from the Department of Economic Development within one week of your application submission to confirm whether or not the equipment will receive 50/50 match funding. You have until September 30, 2026 to submit receipts to the Department of Economic Development.

Is there a limit on the amount of equipment I can purchase? Yes, you may submit up to 10 items with a minimum purchase price of $500 per item. Please provide an estimate for each item to determine the potential grant amount.

Your grant award will be based on the actual purchase price of each item. Grants are a 50/50 match with a maximum award amount of $20,000 total for manufacturing and industrial and $5,000 total for commercial and retail. How long will it take to receive my reimbursement?

Once you have submitted receipts for proof of purchase, the Department of Economic Development will issue a check within two weeks. Commonwealth of Virginia Incentives The Commonwealth of Virginia provides a competitive list of incentive programs available for companies new to the State, as well as existing businesses making substantial capital investment or job creation investments.

Some of the programs available through the Virginia Economic Development Partnership include: Commonwealth's Development Opportunity Fund (COF) Major Eligible Employer Grant Virginia Investment Performance Grant (VIP) Virginia Economic Development Incentive Grant Agriculture and Forestry Industries Development Fund (AFID) Virginia Jobs Investment Program (VJIP) Rail Industrial Access Program Transportation Partnership Opportunity Fund Be sure to visit the Virginia Economic Development Partnership's website for a comprehensive list of incentive programs available in the Commonwealth.

The Virginia Enterprise Zone Program, which is established through the Virginia General Assembly, is a State and Locality partnership in which a variety of incentives are available in a geographically defined area.

Presently, there is one Enterprise Zone in the City of Roanoke (Zone One A); this zone covers much of downtown, sections of the Roanoke Centre for Industry and Technology, Statesman Industrial Park, and the Williamson Road, Melrose Avenue, and Shenandoah Avenue corridors.

Because some Enterprise Zone incentives require pre-approval prior to construction or renovation, it is imperative that you contact the Department of Economic Development prior to committing significant investment in a project.

Enterprise Zone Incentives Fact Sheet (PDF) State Enterprise Zone Incentives The Virginia Department of Housing and Community Development (DHCD) offers two grant-based incentives, the Real Property Investment Grant and the Job Creation Grant, to qualified investors and job creators within the Enterprise Zone.

Real Property Investment Grant 20% reimbursement, capped at $100,000 for real property investments in excess of $100,000; award cap is increased to up to $200,000 for projects with an investment in excess of $5 million. For new construction, minimum investment threshold is $500,000 to qualify for this grant. This grant is available for commercial, industrial, and mixed-use (constituting no less than 30% commercial use) structures.

A grant in the amount of $500 per year (for up to five years) for net new positions paying at least 150% of the Federal minimum wage; $800 per year (for up to five years) for net new positions paying at least 175% of the Federal minimum wage. A company must create a minimum of 4 net new positions to qualify, with benefits becoming available upon the fifth job created. These positions must be full-time and offered full benefits.

Hospitality, food service, and retail positions are ineligible to apply. Real Property Investment Grant and Job Creation Grant applications should be submitted to DHCD through this system: Enterprise Zone Application System - Home (virginia. gov) For more information on State Enterprise Zone grants, please visit the Enterprise Zone Program's website through the Virginia Department of Housing and Community Services.

City of Roanoke Enterprise Zone Incentives The City of Roanoke has developed a strong set of incentives within our Enterprise Zone boundaries; these programs help in offsetting costs associated with investments such as façade renovations, water/fire/sewer connections, and building permit fees. These grants are available for commercial, industrial, or mixed-use (constituting no less than 20% commercial use) structures.

For more information on the incentives available in the City's Enterprise Zone, as well as applications, please see the links below. Qualified projects may receive a reimbursement on approved façade renovations, up to one-third of the amount invested, capped at $25,000. Eligible façade(s) must face a public right-of-way with at least one public entrance.

Projects must receive approval from the City of Roanoke Economic Development Authority before any façade work is started, in order to receive grant funding. Partial Real Estate Tax Exemption Qualified projects may receive a partial real estate tax exemption through the Office of Real Estate Valuation.

Qualified properties must be no less than 15 years old and be rehabilitated or renovated so as to increase the assessed value of the structure by at least $50,000 or more. This incentive is capped at $100,000 over 7 years. Building Permit & Comprehensive Development Plan Review Fees Rebate Qualified projects may receive a refund of City-issued development fees.

Program rebates are determined as a percentage based on total project investment. Water, Fire and Sewer Hookup Grants Qualified projects may receive a refund for costs associated with water, fire, and sewer hookups. Program rebates are determined as a percentage based on total project investment.

Fire Suppression Retrofit Grant Qualified projects making improvements and installing new, first-time fire suppression systems in an existing building may receive annual grants for 5 years to cover a percentage of annual fire charges.

For any business located in Enterprise Zone and participating in the City of Roanoke Police Department’s Star City Business Watch program, Security Grants are available to enact the security measures recommended by the Police Department, for 50% of the approved cost, up to $2,500. Download the Enterprise Zone One A - Information and Applications (PDF) .

For more information on the Enterprise Zone Program, please contact Alicia Cundiff . Disaster Recovery & Resilience Fund Disaster Recovery & Resilience Fund The Roanoke Disaster Recovery & Resilience Fund (DRRF) is a $100,000 emergency relief initiative administered by the Roanoke Economic Development Authority (EDA).

It is designed to support locally rooted businesses impacted by major natural or manmade disasters, including severe weather events, floods, fires, and other disasters. The fund provides immediate, targeted financial support to help employers retain workers, stabilize operations, and resume services quickly. Provide fast, flexible capital to stabilize established businesses.

Accelerate local economic recovery after disasters. Enhance long-term business resilience and continuity in Roanoke. Total Allocation: $100,000 Maximum amount of individual award: $10,000 Expected Number of Awards: Up to 10 grants, based on case-by-case review To qualify for DRRF funding, applicants must: Operate within Roanoke city limits, with a verifiable business address.

Employ three (3) or more W-2 staff members (excluding ownership), which may include part-time employees. Demonstrate a direct and significant physical damage resulting from the disaster. Be in good standing with city tax, licensing, and regulatory obligations.

DRRF grant funds may be used for: Temporary relocation or emergency operations Repair or replacement of essential equipment Bridging insurance gaps not covered by policies Employee payroll during recovery Rent, utilities, or basic overhead Inventory replacement to resume services For more information on how to apply please read the Disaster Recovery & Resilience Fund information packet and contact EDA staff liaison, Alicia Cundiff at [email protected] or 540-853-5405 Should you choose to rehabilitate a structure in a recognized historic district, or a structure which as been deemed historic, you may be eligible to apply for State and/or Federal historic tax credits.

These credits can significantly reduce the cost of rehabilitating an existing building, and have played an important role in downtown Roanoke's revitalization efforts. Federal Rehabilitation Tax Credits This program provides tax credits for qualifying historic properties used for income-producing purposes.

A tax credit for 20% of the rehabilitation costs can be taken for historic properties on the National Register or contributing to a National Register Historic District. Substantial rehabilitation (minimum $5,000) must be undertaken in accordance with the Secretary of the Interior's Standards for Rehabilitation and approved by the National Park Service .

In addition, a Federal Rehabilitation Tax Credit of 10% is available for non-historic buildings built before 1936, which are not on the National Register or contributing to an historic district. Certification by the National Park Service is not required. However, rehabilitation must meet the Secretary of the Interior's Standards of Rehabilitation.

Only commercial projects are eligible. State Rehabilitation Tax Credits This program provides tax credits for qualifying historic properties on the Virginia Landmarks Register, or properties certified by the Virginia Department of Historic Resources as contributing to an historic district or meeting the criteria for listing on the Register (National Register properties or districts are included on the Virginia Register).

Rehabilitation expenses must be at least 50% of the prior assessed value of the building for local real estate tax purposes. Properties do not have to be income producing; residential rehabilitation by homeowners qualifies for the credits. A 25% Rehabilitation State Tax Credit is available.

The property must be rehabilitated according to the Secretary of the Interior's Standards of Rehabilitation and certified by the Virginia Department of Historic Resources. A tax certificate is issued.

For more information on State and Federal Rehabilitation Tax Credits, please contact: Michael Pulice - Roanoke Regional Preservation Office Virginia Department of Historic Resources The NMTC was authorized in the Community Renewal Tax Relief Act of 2000 (Place 106-554) as part of a bi-partisan effort to stimulate investment and economic growth in low income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies.

The NMTC program attracts capital to low income communities by providing private investors with a federal tax credit for investments made in businesses or economic development projects located in some of the most distressed communities in the nation - census tracts where the individual poverty rate is at least 20% or where median family income does not exceed 80% of the area median.

Please go to here for a map of eligible census districts. A NMTC investor receives a tax credit equal to 39% of the total Qualified Equity Investment (QEI) made in a Community Development Entity (CDE) and the Credit is realized over a seven-year period, 5% annually for the first three years and 6% in years four through seven.

If an investor redeems a NMTC investment before the seven-year term has run its course, all Credits taken to date will be recaptured with interest. Impact of New Market Tax Credit Investments Between 2003 and 2015, $679. 9 million in NMTC allocation leveraged an additional $619.

4 million from other sources for a total of $1. 3 billion in project investments to 64 Virginia businesses and revitalization efforts, creating 14,305 jobs. By law, all NMTC investments must be made in economically distressed communities.

However, more than 72% of all NMTC investments have been in communities exhibiting severe economic distress, including unemployment rates more than 1. 5 times the national average, a poverty rate of 30% or more, or a median income at or below 60% of the area median. For more information on the New Market Tax Credit program, please visit the website The New Markets Tax Credit Coalition .

To identify if your property is in a New Market Tax Credit location, please visit the website PolicyMap - Dig Deeper . Real Estate Tax Exemption Programs Substantial relief from real estate taxes is available to property owners who rescue, repair and rehabilitate qualified older buildings located within the City. Subject to the following qualifications, real estate tax is deferred on the value of the improvements to the property.

For more information in tax exemption programs within the City of Roanoke, please contact the Office of Real Estate Valuation at 540-853-2771. Eligibility of Industrial & Commercial Real Property Be no less than 25 years of age (15 years of age within Enterprise Zone One A). Be improved so as to increase the assessed value of the structure by no less than 60% (improved by at least $50,000 within Enterprise Zone One A).

Be improved without increasing the total square footage of such structure by more than 100%. Be designed for and suitable for commercial or industrial use after completion of such improvement (must have at least 20% of the total square footage of the structure dedicated to commercial use in the case of a mixed-use building).

Note: If an exemption is granted for commercial or industrial properties, no other exemption, including ones pertaining to Enterprise Zones, will be granted, even if the use of the property changes. The application form must be filed with Real Estate Valuation by the owner of the building prior to the commencement of any rehabilitation work. The application fee is $50.

In those cases where new tax numbers are created, the fee is $50 for each new number created under this program. An "on site" inspection and appraisal must be conducted by an appraiser from the Office of Real Estate Valuation prior to the commencement of any rehabilitation work and immediately following such work.

No exemption shall be granted if access to the entire property is denied to the Office of Real Estate Valuation for either inspection or appraisal. All appropriate building permits must be obtained prior to the commencement of any work.

Effective Date / Amount / Duration of Exemption The exemption for a qualifying structure commences on July 1 of the tax year following the completion date The amount of the exemption shall be a fixed amount equal to the difference in the appraised value immediately before commencement of substantial rehabilitation and the appraised value immediately after completion of substantial rehabilitation, as determined by the Office of Real Estate valuation.

Only one exemption per structure is applicable at any point in time. The exemption shall run with the real estate for a period of five consecutive years, except exemptions in the H-1 and H-2 Historical Districts and the Conservation/Rehabilitation Districts shall run for a period of ten consecutive years. Within Enterprise Zone One A, the exemption shall run for a period of seven years with a maximum tax exemption capped at $100,000.

Tax Exemption for Use of Certified Solar Energy Equipment As a result of an amendment to Sections 32-103. 5 through 32-103.

17 of the code of the City of Roanoke, addition of new Division 8, owners of real estate to which certified energy equipment, facilities, or devices are attached can apply for tax exemption as follows: Amount of the exemption will be determined by applying the tax rate to the value of the certified solar equipment, facilities, or devices and subtracting that amount from the total real estate property tax due on the real property to which such equipment, facilities, or devices are attached, or if such equipment, facilities, or devices are taxable as machinery and tools, from the total machinery and tool tax due on such equipment, facilities, or devices, at the election of the taxpayer.

The exemption shall be effective for five years, and can apply to properties installing new solar equipment, facilities, or devices as well as to properties with existing solar equipment, facilities, or devices. The exemption will be administered by the Department of Planning, Building, and Development, the Department of Real Estate Valuation, the Commissioner of the Revenue's Office, and the City Treasurer's Office.

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