The Newport News Expansion/Relocation Cost Reduction Enterprise Zone Incentive is an incentive package of benefits equal to the net present value of three years of tax revenue paid to the City of Newport News on new capital investment in real estate, machinery and/or business equipment.

To qualify for this incentive, a company must locate or expand in a Newport News Enterprise Zone, create at least twenty-five (25) net new full-time equivalent jobs within an eighteen (18) month period paying a minimum average wage of $10.00 per hour. Net new jobs include contract employees. The company must also make a minimum $2.5 million investment in new real estate, machinery and tools or (if a non-manufacturer) in business personal property within an eighteen (18) month period. Additionally, this incentive is available only to companies classified as being in a target industry. Target industries are:

• Advanced adhesives and sealants
• Advanced ceramics
• Aerospace and aeronautics
• Back office operations, including accounting, administrative support, bank credit card transactions, customer service, data processing, inventory control, order-taking, and telemarketing
• Computers and computer peripherals (Standard Industrial Classification Code [SIC] 3571, 3572, 3575, 3577)
• Corporate headquarters
• Electronics and electronic components (including non-electrical components of computers and office equipment) (including, but not limited to, SIC 366 and 367)
• Engineering
• Fiber optics
• Glass products
• Instruments (including measuring and controlling devices, medical instruments and scientific instruments) (SIC 38)
• Machinery (SIC 35)
• Metal fabrication and machining (SIC 34, except SIC 348)
• Motor vehicle parts and accessories (SIC 3714)
• Office equipment and furniture
• Photonics
• Plastics and Plastic products (SIC 2821, 308)
• Research and development
• Solar (SIC 3674)
• Tool making

Eligibility is determined by the Newport News Economic/Industrial Development Authority, which may make exceptions to the qualification criteria on a case by case basis. This incentive may be delivered in the form of a land price discount, a grant equivalent to the amount of taxes paid to the City or by any other means. The Authority will work with a qualifying business to structure an incentive package that best meets the needs of the company, but the composition of the incentive package remains at the discretion of the Newport News Economic/Industrial Development Authority.