RD89 - Report of the Virginia Enterprise Zone Work Group Established Pursuant to HB2163 (2025) – November 2025


Executive Summary:

The Enterprise Zone Work Group (Work Group) was established by HB2163 (2025) to review the utilization of currently designated enterprise zones and make recommendations on renewals or terminations. The Work Group was facilitated by the Department of Housing and Community Development (DHCD) and composed of representatives from the Virginia Economic Development Partnership, Virginia Economic Developers Association, Virginia Association of Counties, Virginia Municipal League, Virginia First Cities, and local zone administrators. Additional input was gathered through a survey sent to existing zone administrators and communities without zone designations.

The Work Group came to a general agreement on several legislative recommendations and considerations for the General Assembly. Recommendations address zone utilization and how utilization affects termination, the renewal process, and termination of zones under certain circumstances.