Article 3J Tax Credits
- Provides four types of tax credits (may offset up to 50% of state income and franchise liability) for qualifying activities:
- Credit for creating jobs- tax credit for each new job created after meeting minimum threshold.
- Credit for investing in business property- based on the percentage of the cost of capitalized tangible personal property.
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Credit for job creation |
Credit for investing in business property |
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County |
Tier designation |
Wage standard |
Job threshold |
Credit per job |
Investment amount |
Credit % |
|
Bladen |
1 |
None |
5 |
$12,500 |
$0 |
7% |
|
Brunswick* |
3 |
$563 |
15 |
$750 |
$2 million |
3.5% |
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Columbus† |
1 |
None |
5 |
$12,500 |
$0 |
7% |
|
Cumberland† |
2 |
$564 |
10 |
$5,000 |
$1 million |
5% |
|
Hoke |
2 |
$438 |
10 |
$5,000 |
$1 million |
5% |
|
New Hanover†* |
3 |
$623 |
15 |
$750 |
$2 million |
3.5% |
|
Pender* |
3 |
$451 |
15 |
$750 |
$2 million |
3.5% |
|
Richmond |
1 |
None |
5 |
$12,500 |
$0 |
7% |
|
Robeson |
1 |
None |
5 |
$12,500 |
$0 |
7% |
|
Sampson† |
2 |
$501 |
10 |
$5,000 |
$1 million |
5% |
|
Scotland |
1 |
None |
5 |
$12,500 |
$0 |
7% |
† These counties have AGZ or UPZ designations. The job threshold in AGZ/UPZ is 5 jobs and the credit amount is $1,000 per job (an additional $2,000 can be added if employing a resident of the zone or a long-term unemployed worker). The investment amount is $0 and credit is at 7%.
*These counties have Port Enhancement Zones. Company locations within the PEZ are treated as Tier 1 for the purpose of incentives. Please see any Tier 1 county above for job threshold, investment criteria and credit amount.
- Credit for investing in real property (Tier 1 and Port Enhancement Zones only)- tax credit equal to 30% of the real property investment. *Must invest $10 million in real property within three years and create 200 jobs within two years to be eligible.
- Technology development (TD) tax credit- tax credits for research expenses.
- Small businesses (annual receipts less than $1 million) are allowed a 3.25% credit for research expenses.
- Tier 1 and PEZ businesses are also allowed a 3.25% credit for research
- Research performed in an eco-industrial park is allowed a 35% tax credit on expenses
- Other qualified expense rates for TD tax credit:
- $0-$50 million – 1.25%
- $50-$200 million – 2.25%
- $200 million and up – 3.25%
- 20% credit for research expenses for research conducted by the University of North Carolina system.
- Eligibility requirements:
- Eligible business types: Aircraft maintenance and repair, air courier services hub, company headquarters (must create 75 new jobs), customer service call centers, electronic shopping and mail-order houses, information technology and services (internet service providers, software publishers, computer system design), manufacturing, motorsports facility, motorsport racing team, research and development, warehousing or wholesale trade.
- Average wage must meet or exceed wage scale for Tier designation.
- Must offer health insurance for all full-time positions.
- No environmental violations in the prior two years.
- No serious OSHA violations in the prior three years.
- No overdue taxes.