Defense production zone classification signed into law

Henrico sought new zones to attract companies
Virginia Governor Bob McDonnell signed a number of pieces of legislation into law April 7 at the Virginia Biotechnology Park in Richmond, including Senate Bill 999/House Bill 1822, which creates a separate classification of machinery and tools designed and used directly in manufacturing or processing materials, components or equipment for national defense and authorized localities to create Local Defense Production Zones, within which such machinery and tools could be taxed at a rate less than the rate generally applicable to such materials.

The bill was carried by Senators Walter Stosch and Donald McEachin and Delegate Chris Peace on behalf of Henrico County, which sought the ability to create such a zone to attract defense-based companies to the county.

“This bill will serve as a tool for localities to attract defense companies to their county, city or town," Peace said. "These companies will bring jobs and new industry to the community, while stimulating economic development.”

Peace and Henrico Supervisors Pat O'Bannon and Dick Glover were among the officials who joined McDonnell as he signed the measure into law.

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