1. Tax Credits - Tax Credits are available for job creation, investment in business property, and investment in real property (tier 1 counties only). Amount of credits vary by county based on what tier designation the county is. Counties are ranked on a tier system of 1-3. Expanding or relocating companies that hire North Carolina workers to fill positions may take the credits.
| |
A. Eligible companies must be involved in the following activities: manufacturing, warehouse/wholesale distribution, headquarters, information technology and services, motorsports, aircraft maintenance and repair, customer service centers, research and development, and wholesale trade. |
| |
|
| |
B. The company must satisfy a wage standard to be eligible for the credits. There is no wage threshold for tier 1 counties. For tier 1 and 2, the company must pay an average weekly wage that is at least equal to the lesser of 110% of the average weekly wage of the state and 90% of the average weekly wage for private employers in the county. |
| |
|
| |
C. All tax credits can be taken on either the North Carolina corporate income, franchise or North Carolina Gross Premium Tax returns. |
| |
|
| |
D. The North Carolina Ports also offers a tax credit for using the ports earned on wharfage and handling fees. |
| |
|
| |
E. The total value of credits may not exceed 50% of the corporation's annual tax liability. |
2. Industrial Training - Customized training for employees is provided at no cost to the company by the North Carolina Community College system. The value of this training is typically $1,500 per person trained. North Carolina’s Industrial Training Program is a national model for providing industry with customized training. The industrial training service is available to new or expanding industries that create at least 12 new jobs.
3. Industrial Development Fund - Provides grant funds at $5,000 per new job created up to a maximum of $500,000 for infrastructure needs via the local government. Grants can be used for water/sewer, rail extension, natural gas lines, and electric upgrades for NC businesses committing to create full time jobs. The unit of local government must own the infrastructure.
Industrial Development Fund loans are made to businesses for building upgrades or the acquisition of new machinery and equipment – at $5,000 per job or a max of $500,000. A bank must match the IDF loan on a 1:1 basis, and the bank administers the loan.
4. Community Development Block Grant - Provides grant funds from $8,000 to $15,000 per job created (depending on county) up to a maximum of $1,000,000 for infrastructure needs via the local government. The unit of local government must own the infrastructure. Grants and loans are determined by the cost of the project and the availability of funding.
Community Development Block Grant loans are made to businesses for building upgrades or the acquisition of new machinery and equipment – at $5,000 per job or a max of $500,000. A bank must match the IDF loan on a 1:1 basis, and the bank administers the loan.
5. Industrial Revenue Bonds - Tax-exempt bonds up to $10 million are available for building, equipment, and land. Interest rates are currently around 2.5%. The maximum tax-exempt bond amount is $10 million. Financing can be used for building, land, and equipment. Amounts larger than $10 million may be eligible for taxable bonds. Financing can be used for building, land, and equipment. Threshold for overall cost savings on the interest rate versus upfront issuance costs is approximately $2 million.
Composite Bonds allow companies with capital investments under $2 million to apply for revenue bonds and gain the advantages of lower interest rates. Companies apply collectively to achieve economies of scale and reduce the upfront issuance costs.
6. Job Development Investment Grant - discretionary grant that may be available based on economic impact of project for jobs, investment, and wages--up to 75% of tax withholding for 10 years; annual cap of $10 million; positive fiscal impact required with jobs and investment. The company must meet the following requirements: result in a significant net increase in employment in this State; benefit the people of the State by increasing the opportunities for employment and by strengthening the State's economy; be consistent with the economic development goals of the State and of the area in which it is located; be necessary for the completion of the project in the State. The company must also meet certain State health insurance, wage standard, and workplace safety requirements and must maintain operations at the project location, or at another approved site, for at least 10% of the term of the grant.
7. One North Carolina Fund - discretionary grant that may be used to provide financial assistance to a business or industry making significant efforts to establish a new facility or expand and existing one in North Carolina. Funds may be used only for the purchase or installation of equipment, renovation of existing buildings to be used for expansion, construction or improvements to new or existing utility lines, or equipment for existing buildings.
8. Rail Access Fund – funding for development of rail infrastructure for companies in which rail is required. Funding is based on volume, jobs, and investment. Funding can be used for site prep, track construction, switches, grade crossings and signals.
Local Government
Each of our 11 counties has its own inducement policy, typically measured against the investment return to the county generated from a new investment in building and/or equipment. The project must meet certain threshold requirements, including: total financial investment, number of jobs created, payroll, and potential for future expansion and increased employment.
Utilities
Electric utilities offer a variety of rates and incentives for industrial and commercial clients based on demand, consumption and operating characteristics. Progress Energy offers two riders that may apply to new electrical customers.
- The ED Rider provides a reduced rate schedule over five years or qualifying customers adding a minimum of 1-megawatt electrical load.
- The Economic Redevelopment Rider provides a 50% rate discount in year one for qualifying businesses that move into a vacant facility served by Progress Energy.
NORTH CAROLINA'S SOUTHEAST
The Regional Economic Development Marketing Organization
For Southeastern North Carolina
707 West Broad Street, P.O. Box 2556, Elizabethtown,
NC 28337
Phone: 800-787-1333 Fax: 910-862-1482 |
