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  • Technology Zone Incentive

     

    The City of Fredericksburg has created several designated technology zones within the City limits in an effort to attract more investment into areas prioritized in the JumpStart! Plan as well as the City’s Comprehensive Plan.  Qualified new or expanding businesses that are interested in locating in one of these five (5) zones may be eligible for incentives.

     

    The five (5) Technology Zones are:

     

    • Central Park – Silver Street
    • Central Park – Corporate Center
    • Route 1 Corridor
    • Route 3 Corridor
    • Downtown – Princess Anne Street

      

    Map of Technology Zones – For a more detailed view visit FredGIS.

     

    The eligibility requirements for all five (5) Technology Zones are as follows:

     

    • Existing businesses in the City that are expanding, a minimum of five (5) new jobs or at least a $125,000 capital investment.
    • New businesses locating in the City, a minimum of ten (10) jobs or at least a $250,000 capital investment.

      

    The level of incentives is determined based on the size of the capital investment, the number of jobs created and how the project meets the following areas of interest to the City of Fredericksburg.

     

    • Increase in local sales tax generation
    • BPOL tax generation
    • Location within a priority area, as defined in the JumpStart! Plan and 2007 Comp Plan
    • Connection to the City’s Pathways Plan
    • Incorporation of public art into the project
    • Use of the Economic Development Authority in financing the project
    • Environmental Innovation
    • Historic Preservation

      

     Technology Zone Informational Flyer

     

    The Technology Zone ordinances outline the eligibility requirements for projects to be considered for incentives:

     

      

    Each project must submit a project description and financial projections, along with an incentive application, to the City of Fredericksburg’s Department of Economic Development and Tourism. Once the application is received, the City of Fredericksburg will review and score each project based on a weighted scale, which addresses the areas of interest described above. Each project will then be given a recommended incentive package, which will include the amount and duration of the incentive. City Council has final approval authority for each agreement. Annual performance reports are required from each company receiving an incentive agreement.

     

    For Technology Zone businesses, the incentives are as follows for terms of up to five-years:

     

    • Reduction of BPOL taxes, up to 100% for years 1-3 and up to 50% for years 4 and 5
    • Machinery and tools tax grants for up to 100% for years 1-3 and up to 50% for years 4 and 5
    • Business personal property tax grants for up to 30% for years 1 and 2, up to 50% for years 3 and 4 and up to 70% for year 5
    • Reduction or waiver of permit fees and/or water and sewer availability fees

      

    Please refer to the specific provisions in the respective ordinances.

     

    For more information about the City Incentive Program:  CITY INCENTIVE APPLICATION

     

    The City of Fredericksburg established Technology Zones in order to target specific business for specific areas. Economic incentives are available in order to attract development, and create a more business friendly environment.

     

    Applicants are encouraged to contact the Department of Economic Development and Tourism prior to submitting the application by calling 540.372.1216 or writing to the Director of Economic Development and Tourism, Bill Freehling.

     


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