Incentives
State of North Carolina Incentive Programs
Tax Credits
Job Creation Tax Credit
Business Property Investment Credit
Real Property Investment Credit
Research and Development Credit
NC Ports Credit
Grant Programs
OneNC Fund
Job Development Investment Grant (JDIG) Program
Job Creation Tax Credit
Eligible taxpayers that meet a minimum threshold of five new full-time jobs created during the taxable year may claim a $12,500 credit for each new job created. The credit is taken in equal installments over four years following the year the jobs are created. The total amount of credits taken can not exceed 50% on NC tax liability. If your business in located in a designated Agrarian Zone, the job creation tax credit increases by between $1,000 and $2,000 per job.
For more information, visit the NC Department of Commerce.
Business Property Investment Credit
Eligible taxpayers may claim a credit of 7% of the cost of capitalized tangible personal property that is placed in service during the taxable year, in excess of an applicable threshold. There is no minimum threshold in Columbus County. This credit is taken in equal installments over four years, beginning the year after the property is first placed in service. The total amount of credits taken cannot exceed 50% on NC tax liability.
For more information, visit the NC Department of Commerce
Real Property Investment Credit
Eligible taxpayers that invest at least $10 million in real property within a three-year period and create at least 200 new jobs within two years at an establishment located in a Columbus County are allowed a credit equal to 30% of the eligible real property investment. This credit is taken in equal installments over seven years, beginning the year after the property is used in an eligible business. The total amount of credits taken can not exceed 50% on NC tax liability.
For more information, visit the NC Department fo Commerce
Research and Development Credit
Businesses in Columbus County with qualified North Carolina research expenses are allowed a 3.25% credit against those expenses. A business with North Carolina university research expenses for the taxable year is allowed a credit equal to 20% of those expenses. The total amount of credits taken can not exceed 50% on NC tax liability.
For more information, visit the NC Department fo Commerce
Businesses who pay North Carolina state income tax and use North Carolina ports can qualify for tax credits on outbound cargo. The credit is earned on cargo wharfage and handling fees paid to the N.C. State Ports Authority which exceed the average for over three tax years. The credit applies to taxes due to the state - up to 50% of the total tax liability for each tax year. Any unused credit may be carried forwarded up to five years for a total credit of up to $2 million. For more information on ports tax credit or services, visit the N.C. State Ports website or call 1-800-334-0682.
OneNC Fund
The One North Carolina Fund helps recruit and expand quality jobs in high value-added, knowledge-driven industries. It also provides financial assistance to those businesses or industries deemed vital to a healthy economy that are making significant efforts to expand in North Carolina.
The fund currently consists of nonrecurring appropriations made by the N.C. General Assembly for companies seeking to undertake new expansion or locate new operations in the state. The fund is competitive and the location or expansion must be in competition with another location outside the state.
Program Requirements: Companies can receive money for:
- Installation or purchase of equipment.
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Structural repairs, improvements, or renovations of existing buildings to be used for expansion.
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Construction of or improvements to new or existing water, sewer, gas or electric utility distribution lines, or equipment for existing buildings.
For a company to be considered:
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The company must agree to meet an average wage test .
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Local units of government (city or county) must agree to match financial assistance to the company.
Job Development Investment Grant (JDIG) Program
The Job Development Investment Grant (JDIG) is a discretionary incentive that provides sustained annual grants to new and expanding businesses measured against a percentage of withholding taxes paid by new employees.
The program stimulates economic activity and creates new jobs by promoting the expansion of existing business and industry and by recruiting and attracting new business and industry.
Overseeing the program is the Economic Investment Committee, comprised of five members, the Secretary of Commerce, the Secretary of Revenue, the Director of the Office of State Budget and Management, and two private sector members appointed by the N.C. General Assembly.
Program Requirements: A proposed project must meet a rigorous set of criteria. The Economic Investment Committee must find:
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The project will result in a net increase in employment.
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The project will increase opportunities for employment and strengthen the state's economy.
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The project will be consistent with the economic development goals of the state and of the area in which it is located.
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The project will be competitive with another state(s) or country.
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The grant is necessary for the completion of the project in the state.
Maximum Amounts: The committee is authorized to award up to 25 grants in a single grant year. These grants can result in payments to a business for up to 12 years. The total amount paid out in any one of those years cannot exceed $15 million, giving the committee up to $180 million to allocate in benefits to the 25 businesses over a 12-year period. The statute authorizes awards from 10% to 75% of withholdings for eligible positions. Similarly, the term of the grant may not exceed 12 years. Even with statutory requirements, the committee has discretion in weighing factors to award projects and fix the amounts, terms and time periods of grants.
For more information, please visit the NC Department of Commerce website.
The Source of information for content on this page is the North Carolina Department of Commerce.