Chesterfield Technology Zone Incentives: What Industrial and Commercial Users Can Get, and How to Apply

Chesterfield technology zone incentives give businesses that locate or expand in one of the county’s five designated zones up to five years of relief from the business license (BPOL) tax and the machinery and tools tax, plus waived permit and plan review fees and a credit toward utility connection costs. They sit on top of countywide advantages, such as a low effective machinery and tools rate and no local tax on inventory, and can be combined with state grants for larger projects.

Location decides eligibility, so the zone map matters before you sign a lease or a land contract. This post covers the zones, the benefits, the other local and state programs, and how the application process works. For the broader market, including vacancy, rents, and submarkets, see our guide to Chesterfield industrial property along I-95.

Which areas are Chesterfield technology zones?

Per Chesterfield Economic Development, the county has five zones. The two largest cover most of the I-95 and Route 1 industrial corridor.

Zone boundaries follow parcels, not road names, so a site on Route 1 is not automatically inside. The Commissioner of the Revenue administers the county’s Technology Zones map application, which was posted in June 2025, to check a specific address.

What do Chesterfield technology zone incentives include?

• BPOL exemption for five years: a full exemption for companies new to Chesterfield, and a partial exemption, set by the Commissioner of the Revenue, for existing county businesses that relocate into a zone.
• Machinery and tools tax rebate for five years: full or partial, on qualifying equipment bought or leased by manufacturers locating or expanding in a zone.
• Development fee waivers: site plan review, land disturbance, sign, and building permit fees, including the mechanical, electrical, and plumbing trades.
• Utility connection credit: the county covers the water and wastewater capital cost recovery fee equal to a 5/8-inch meter.
• Rezoning fee waiver: for office, commercial, or industrial uses that fit the zone.

Virginia law caps how long this kind of relief can last. Va. Code § 58.1-3850 lets localities reduce permit fees, user fees, and gross receipts taxes in a technology zone for up to ten years. Chesterfield’s program uses five.

What is Chesterfield’s machinery and tools tax rate?

Chesterfield’s published rate on machinery and tools is $1.00 per $100 of assessed value, per the county’s business tax rates page. The low effective rate comes from the assessment. On the county’s 2026 machinery and tools return, equipment acquired from 2016 through 2025 is assessed at 25% of original cost, equipment from 2006 through 2015 at 20%, and 2005 and earlier at 15%. That is why Chesterfield Economic Development describes the effective rate as 25 cents per $100. Its example: $20 million of equipment costs about $50,000 a year in Chesterfield, compared with $200,000 at a $1.00 effective rate.

Machinery and tools returns for 2026 were due March 2, 2026, and cover assets used or available for use as of January 1. A Technology Zone rebate is applied against this tax, so the two benefits stack. Your CPA and the Commissioner of the Revenue are the final word on how a specific asset is classified.

What other local incentives does Chesterfield offer?

Chesterfield Economic Development’s incentive programs page says it evaluates projects case by case, based on investment and employment. Beyond Technology Zones, the main local tools are:

• Business Expansion Incentive Fund (BEIF): low-interest loans or grants to keep and grow existing Chesterfield businesses. The county’s December 2021 internal audit summarized the program manual’s criteria at the time: fewer than 250 employees, under $20 million in revenue, or under $5 million in net worth; at least $50,000 of capital investment; one job created or retained per $10,000 requested; a $50,000 maximum per project; approval before the project starts; and a performance contract. The same audit found one grant had exceeded that maximum, so confirm current terms with the county.
• Fast-track permitting: expedited site and building plan review, requested through the Director of Economic Development.
• Industrial revenue bonds: tax-exempt financing for qualifying facilities through the county’s industrial development authority.

Which state programs can stack with Chesterfield incentives?

State grants are meant for competitive, traded-sector projects, meaning Virginia is competing against another state or country for a company that sells mostly outside Virginia. The best known is the Commonwealth’s Development Opportunity Fund (COF), a discretionary grant from the Governor. Per VEDP’s incentive guidelines, the general thresholds are 50 new jobs and $5 million of capital investment, or 25 new jobs and $100 million. New jobs must pay at least the locality’s prevailing average wage. The locality must match the grant dollar for dollar, in cash or in kind, and the performance date is generally 36 months after announcement. Missing targets triggers a proportional repayment.

Port users should note a change. Virginia’s Port Volume Increase and Barge and Rail Usage tax credits applied to taxable years before January 1, 2025, and the Tax Commissioner stopped issuing barge and rail credits after June 30, 2025. Some older incentive summaries still list them. Starting in 2025, the Virginia Port Authority runs an Economic and Infrastructure Development Grant Program for companies that create at least 25 new full-time jobs and move goods through the Port of Virginia. Grants start at $1,000 per new job, rise with job count, and applications are due by March 31 of the year after the facility opens or expands. The county also points companies to the Virginia Jobs Investment Program for hiring and training support.

How does a company apply for Chesterfield incentives?

1. 1Confirm the site is in a zone using the county’s Technology Zones map, and check zoning for your use.
2. 2Contact Chesterfield Economic Development at (804) 318-8550. The Technology Zone application is online only, and staff send the link.
3. 3Get eligibility confirmed. Per the 2021 audit, Economic Development confirms eligibility by location. Then Utilities, Planning, Building Inspections, and the Commissioner of the Revenue each approve the benefits they administer.
4. 4Follow up with each department. The same audit notes the applicant is responsible for contacting those departments to claim each benefit.
5. 5For larger projects, ask about BEIF or state programs. A COF or port grant runs through the county and VEDP or the Port Authority, and ends in a performance agreement with job, wage, and investment targets.

Incentive agreements carry clawbacks, so have your attorney and CPA review the targets against a realistic hiring plan. If you are comparing sites in the Route 1 zone, our post on Meadowville Technology Park industrial sites and the Chesterfield I-95 industrial guide cover the real estate side.

Get help lining up a site and incentives

I can help you screen industrial and commercial sites against the Technology Zone map, zoning, and utilities, so the incentive conversation starts with a site that qualifies. Browse the listings page, or reach out to talk through your requirements.