Technology Zone Incentive
The City of Fredericksburg is a city-wide Technology Zone. Economic incentives are available in order to attract development, stimulate investment and create a more business friendly environment. Qualified new or expanding businesses that are interested in locating the City may be eligible for incentives, with terms of up to 10 years.
For Technology Zone businesses, incentives may include, but not be limited to:
- Reduction of BPOL taxes
- Reduction of permit/user fees
Please refer to the specific provisions in the respective ordinances. For more information about the City Incentive Program: City Incentive Application.
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.
The eligibility requirements are as follows:
- Existing businesses in the City that are expanding, a minimum of 5 new jobs or at least a $125,000 capital investment.
- New businesses locating in the City, a minimum of 10 jobs or at least a $250,000 capital investment.
The Technology Zone ordinances outline the eligibility requirements for projects to be considered for incentives:
- Technology Zones Ordinance 10-24 (PDF)
- Technology Zones Ordinance 11-05 (PDF)
- Technology Zones Ordinance 19-07 (PDF)
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.
Scope of Incentives
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