Fairfax County unveiled a proposed Revitalization and Redevelopment Economic Incentive Program (RREIP), which, among other incentives, will allow up to a 10-year real estate tax abatement for certain projects. The new program will replace the current Economic Incentive Program (EIP). Owners and developers should prepare to take advantage of the abatement.
Under the new program, a project must meet certain criteria to be eligible for the 10-year tax abatement. The project must:
- be developed for commercial, industrial, multi-family or mixed use;
- consolidate two or more parcels;
- consist of two acres or more (can be waived by the Board of Supervisors); and
- be located in a designated Revitalization and Redevelopment Economic Incentive Area.
The proposal covers the county’s community revitalization districts, including Annandale, Bailey’s Crossroads/Seven Corners, Lincolnia, McLean, the Richmond Highway Corridor and Springfield. RREIP is also proposed to include the Huntington Area, Culmore, Lake Anne and an expanded portion of Annandale.
Unlike the current EIP, the RREIP anticipates creating a separate Economic Revitalization Zone (ERZ) for each approved project. The ERZ will be approved at the time of a rezoning and the 10-year tax abatement will begin three years after approval. In essence, a development will have three years from the zoning approval to complete construction and achieve the full 10-year abatement.
Owners and developers should formulate plans now to take advantage of the full 10-year tax abatement.
