The Fairfax County Board of Supervisors recently moved forward in its consideration of a new Economic Incentive Program (EIP) that would provide tax abatements and other incentives for development in this Northern Virginia county’s designated revitalization areas. Authorization is scheduled for July 28, and the program could take effect as early as Jan. 1, 2020.
The primary benefit of the EIP is a partial real estate tax abatement equal to the difference in value between the base value (predevelopment) and fair market value (post-development) for up to 10 years. In addition to the tax abatement, eligible applications would receive expedited processing for zoning applications, site plan review and building plan review, as well as inclusion in the Land Development Services Project Management Program and a 10 percent reduction in site plan fees.
The EIP applies to new commercial/industrial/multifamily projects in one of Fairfax County’s revitalization areas, which generally include Annandale, Baileys Crossroads/Seven Corners, Lake Anne Village Center, Lincolnia, McLean, the Richmond Highway Corridor and Springfield. Draft eligibility criteria also require that projects consolidate at least two acres of land and two parcels, although the Board of Supervisors can modify certain requirements.
The program was adopted on Sept. 15; however, the 10-year tax abatement window begins on the following dates:
- July 1, 2022, for projects in the Baileys Crossroads/Seven Corners EIP area
- July 1, 2024, for projects in the McLean, Richmond Highway Corridor and Springfield EIP areas
- Jan. 1, 2025, for projects in the Annandale and Lincolnia EIP areas
Owners and developers should be formulating plans now to take advantage of the full 10-year tax abatement. McGuireWoods attorneys and land planners are happy to discuss eligibility, strategy and stakeholder engagement to maximize these potential incentives.