McDonnell recommends port-related economic development zone
- April 11, 2012
Gov. Bob McDonnell is recommending the creation of an economic development zone to promote industrial investment in port-related communities.
The plan is among 130 budget amendments McDonnell sent to the General Assembly to consider at its veto session on April 18.
The Port of Virginia Economic and Infrastructure Development Zone would cover a wide swath of localities between Richmond and Hampton Roads in addition to Warren County, where the Inland Port is located.
The zone would offer tax credits to port-related businesses that located within the zone after July 1. To be eligible for the tax credits, businesses would need at least 25 employees.
The tax credits would apply to taxable income that was generated within the zone during the zone’s first taxable year, depending on the number of employees.
For example, companies that had at least 25 employees would be eligible for a tax credit equal to 25 percent of its taxable income within the zone. The more employees, the higher the credit.
The zone is designed to encourage investment from logistical, manufactory and infrastructure, which officials say would encourage growth of imports and exports through the Port of Virginia.