Tax Incentives

Technology Zone: Grants equal to 80% of all taxes paid to County for 3 years after project completion. Initial year grant also includes cost for all site plan and building plans fees.

TechZones

Accelerated Depreciation: In addition to direct incentive payments, Culpeper County has adopted an accelerated depreciation schedule for the assessment of business personal property including machinery and tools. The following factors are used to depreciate business property assessments for County tax purposes:

Year 1 – 70% of Original Cost
Year 2 – 60% of Original Cost
Year 3 – 50% of Original Cost
Year 4 – 40% of Original Cost
Year 5 + 30% of Original Cost

In order to assist knowledge based businesses, Culpeper has adopted a more aggressive depreciation schedule for computer equipment including mainframes, personal computers and related equipment. The following factors are used to depreciate computer equipment assessments for County tax purposes:

Year 1 – 65% of Original Cost
Year 2 – 50% of Original Cost
Year 3 – 40% of Original Cost
Year 4 – 30% of Original Cost
Year 5 + 20% of Original Cost

As a result of combining the Technology Zone tax incentives and an accelerated depreciation schedule, businesses find that their first year business personal property tax obligation is based on 40% of the original value and 30% if the property is computer equipment.

Culpeper County will expedite site plan and building plan reviews and approvals.

Additional incentives may be available through Culpeper County and the State of Virginia.