59.1-279 - Eligibility.
§ 59.1-279. Eligibility.
A. Any business firm may be designated a "qualified business firm" forpurposes of this chapter if:
1. (i) It establishes within an enterprise zone a trade or business notpreviously conducted in the Commonwealth by such taxpayer and (ii) 25 percentor more of the employees employed at the business firm's establishment orestablishments located within the enterprise zone either have incomes below80 percent of the median income for the jurisdiction prior to employment orare residents of an enterprise zone.
2. It (i) is actively engaged in the conduct of a trade or business in anarea immediately prior to such an area being designated as an enterprise zoneand (ii) increases the average number of full-time employees employed at thebusiness firm's establishment or establishments located within the enterprisezone by at least 10 percent over the lower of the preceding two years'employment with no less than 25 percent of such increase being employees whoeither have incomes below 80 percent of the median income for thejurisdiction prior to employment or are residents of an enterprise zone.Current employees of the business firm that are transferred directly to theenterprise zone facility from another site within the state resulting in anet loss of employment at that site shall not be included in calculating theincrease in the average number of full-time employees employed by thebusiness firm within the enterprise zone.
3. It (i) is actively engaged in the conduct of a trade or business in theCommonwealth and relocates to begin operation of a trade or business withinan enterprise zone and (ii) increases the average number of full-timeemployees employed at the business firm's establishment or establishmentswithin the enterprise zone by at least ten percent over the lower of thepreceding two years' employment of the business firm prior to relocation withno less than 25 percent of such increase being employees who either haveincomes below eighty percent of the median income for the jurisdiction priorto employment or are residents of an enterprise zone. Current employees ofthe business firm that are transferred directly to the enterprise zonefacility from another site within the state resulting in a net loss ofemployment at that site shall not be included in calculating the increase inthe average number of full-time employees employed by the business firmwithin the enterprise zone.
4. For the purposes of this section, the term "full-time employee" means(i) an individual employed by a business firm and who works the normal numberof hours a week as required by the firm or (ii) two or more individuals whotogether share the same job position and together work the normal number ofhours a week as required by the business firm for that one position. For thepurposes of this section, the term "jurisdiction" means the county, city ortown which made the application under § 59.1-274 to have the enterprise zone.In the case of a joint application, jurisdiction means all parties makingsuch application.
B. After designation as a qualified business firm pursuant to this section,each business firm in an enterprise zone shall submit annually to theDepartment a statement requesting one or more of the tax incentives providedin § 59.1-280 or 59.1-282. Such a statement shall be accompanied by anapproved form supplied by the Department and completed by an independentcertified public accountant licensed by the Commonwealth which states thatthe business firm met the definition of a "qualified business firm" andcontinues to meet the requirements for eligibility as a qualified businessfirm in effect at the time of its designation. A copy of the statementsubmitted by each business firm to the Department shall be forwarded to thezone administrator.
C. The form referred to in subsection B of this section, prepared by anindependent certified public accountant licensed by the Commonwealth, shallbe prima facie evidence of the eligibility of a business firm for thepurposes of this section, but the evidence of eligibility shall be subject torebuttal. The Department or the Department of Taxation or State CorporationCommission, as applicable, may at its discretion require any business firm toprovide supplemental information regarding the firm's eligibility (i) as aqualified business firm or (ii) for a tax credit claimed pursuant to thischapter.
D. The provisions of this section shall apply only as follows:
1. To those qualified business firms that have initiated use of enterprisezone tax credits pursuant to this section on or before July 1, 2005;
2. To those small qualified business firms and large qualified business firmsthat have signed agreements with the Commonwealth regarding the use ofenterprise zone tax credits in accordance with this section on or before July1, 2005; provided that in the case of small qualified business firms, thesigned agreements must be based on proposals developed by the Commonwealthprior to November 1, 2004.
(1982, c. 275; 1983, c. 572; 1988, cc. 236, 374; 1995, c. 792; 1997, cc. 497,517, 808; 2005, cc. 863, 884.)