The Norfolk City Council recently approved a new ordinance that provides additional Norfolk Innovation Corridor tax incentives for businesses setting up in the area. This ordinance offers a 50% reduction in planning, zoning, and building permit fees, on top of existing incentives. The council’s move is aimed at fostering the development of new technology businesses within the city, akin to similar incentives offered by other Virginia Technology Zones. The Norfolk Innovation Corridor, a designated “technology zone” under state law, stretches from Norfolk State University to Old Dominion University and includes numerous institutions and districts. These tax incentives are designed to attract and retain technology companies and build a diverse, talented workforce.
Approval of Tax Incentive
The Norfolk Innovation Corridor (NIC) received great news from the most recent City Council meeting last week, June 22, 2021. Norfolk City Council approved an ordinance that provides an additional tax incentive for businesses locating in the NIC. The approved ordinance offers a 50% reduction in planning, zoning, and building permit fees.
Technology Zone and Incentives
The City Council created the Technology Zone to foster the development and location of new technology businesses within the city, which will increase capital investment and create jobs. Current incentives are limited to reductions of the BPOL and Machinery & Tools taxes. The addition of planning and building fee reductions is comparable to the incentives offered by other Virginia Technology Zones including those in Chesapeake, Chesterfield County, Fredericksburg, Manassas Park, and Stafford County. A copy of the City Code Chapter can be found here.
NIC Overview
The NIC is an area paralleling the Elizabeth River Trail that stretches from Norfolk State University to Old Dominion University, including the Eastern Virginia Medical School/Sentara/Children’s Hospital of The King’s Daughters, Fort Norfolk, Downtown Norfolk, the Neon Arts District, and the Harbor Park area. Under state law, it is designated as a “technology zone”, enabling qualifying startup firms and firm expansions to receive certain tax incentives, in addition to enjoying the other advantages of setting up a business where physical, networking and economic assets are so densely clustered. The NIC serves to attract and retain technology companies while serving as a magnet for a talented and diverse workforce.
More Information
More information about the NIC can be found on their website.
Question & Answer
What did the Norfolk City Council recently approve regarding tax incentives?
The Norfolk City Council recently approved an ordinance that provides additional Norfolk Innovation Corridor tax incentives for businesses setting up in the area. This ordinance offers a 50% reduction in planning, zoning, and building permit fees, on top of existing incentives.
What is the purpose of the new tax incentives in the Norfolk Innovation Corridor?
The council’s move is aimed at fostering the development of new technology businesses within the city, akin to similar incentives offered by other Virginia Technology Zones. These tax incentives are designed to attract and retain technology companies and build a diverse, talented workforce.
What areas are included in the Norfolk Innovation Corridor?
The Norfolk Innovation Corridor, a designated “technology zone” under state law, stretches from Norfolk State University to Old Dominion University and includes numerous institutions and districts such as the Eastern Virginia Medical School/Sentara/Children’s Hospital of The King’s Daughters, Fort Norfolk, Downtown Norfolk, the Neon Arts District, and the Harbor Park area.
