Incentives

The appropriate process and use of incentives is to broaden and diversify the tax base, create new job opportunities for the citizens of Louisa County, and promote the economic growth and welfare of Louisa County. Economic Development incentives are necessary because of the inherent competition between localities for new businesses and jobs. The Louisa County Board of Supervisors has adopted this policy with the recognition that the provisions are applicable to only taxes levied on businesses by the County of Louisa and the provisions do not apply to taxes levied by the Town of Louisa or Town of Mineral. The intent of these guidelines is to complement the existing and all future versions of any incentive program that is offered by other municipalities in Louisa County and by the State of Virginia.

Eligibility

To be eligible for public incentives of any kind, a business must meet the minimum wage, job creation and capital investment requirements set forth in this policy and must be engaged in one or more of the following activities:

  • Manufacturing: Determined by appropriate NAICS code.
  • Service Sector:  Activities where people offer their knowledge and time to improve productivity, performance, potential, and sustainability. (Education, finance, communications, health care, utilities, wholesale and retail trade, and transportation.)
  • Research and Development: The conducting of research, development or testing for scientific, medical, food product or industrial purposes
  • Warehousing and Distribution
  • Corporate Headquarters: May include back office operations and customer service activities.
  • Transportation: Freight or passenger transportation services. Majority of revenue must be derived from interstate commerce/travel.
  • Tourism: Attraction and events considered likely to attract at least 30% of attendees from outside of Louisa County.

Wages

A business shall be considered for public incentives only if the average wage paid to its employees equal $18.00* per hour or $37,440* per year.

* Average wages in the County of Louisa are artificially inflated due to the effects of a single large private sector employer, whose average wages are approximately $70,000 annually.  Inclusion of this average annual wage increases the average hourly wage to $21.63 or $45,000 per year. Satisfying wage requirements at this level would result in a loss of the County's advantage when competing for our targeted industries*.

Wages shall be calculated based on the following formula:
Total Annual Payroll / Full Time Employees / 2080 Hours

In addition to the above wage criteria, in making a decision to approve or disapprove an incentive, the Louisa County Board of Supervisors should consider the following information:

  1. The size of the project based upon private investment in the site development, plant facilities and infrastructure;
  2. The total number of jobs, benefits and types of jobs created;
  3. The relationship between job development and total investment;
  4. Potential for future expansion and increased employment;
  5. Potential for retention of existing employment;
  6. Potential for diversification of the local economy;
  7. Potential for inclusion of disadvantaged minority or women owned businesses as contractors, suppliers, etc;
  8. Project specific incentives that may be pursued to stimulate other development areas that the Louisa County Board of Supervisors deems a significant benefit to the community i.e. designated growth areas.
  9. Economic development incentives from other local governments and/or the State of Virginia;
  10. Financial impact and budget ramifications.
  11. Economic impact on existing Louisa County businesses.

For more detailed information, please download any of the following documents: