Secretariat

U.S. State Programs for New Investments

Available Investment Programs

North Carolina

Note: North Carolina uses a tier ranking system for counties based on relative economic prosperity. These tier rankings are often used to determine the actual amount of incentives offered.

Taxes

• The Investment Tax Credit is for companies that create an excess of capital investment in their owned or controlled manufacturing business in North Carolina. The investment tax credit is for seven years (carry forwards for up to 20 years are available for large investments of at least $150 million) set a 7% of excess value (above an application threshold determined by county tier level) of machinery and equipment placed in service by new or expanding firms.
• The Job Creation Tax Credit is available to corporations that add new jobs in severely economically distressed counties. The credit is claimed at $2,800 (amount may also vary depending on tier level of the involved county) per job created and is taken over a four-year period in amounts not larger than 50% of the company's North Carolina income taxes.
• The R&D Tax Credit in N.C. is set at 5% of the state's apportioned share of the business' expenditures for R&D.
• A Business Property Tax Credit of 4.5% is available to claim against purchased or leased tangible personal business property capitalized under the tax code.
• The Credit for Substantial Investment in Other Property is available to businesses planning to purchase or lease at least $10,000,000 of real property that will create at least 200 new jobs. The credit is 30% of the eligible investment amount.
• The Central Administrative Office credit is available to companies who purchase or lease real property in N.C. to be used as a central administrative office. The office must create at least 40 new full-time jobs and the credit will not exceed $500,000.

Employee Training

• Worker training tax credits are available for workers classified as full-time who require additional training. The amount of the credit depends on the tier level of the county in which the plant is located and ranges between $100,000 and $1 million for the most distressed counties.
• The Industrial Training Program provides industry with customized training with the full cost of the training being paid by the state. This training service is only available to any new or expanding plant that creates at least 12 new jobs.

Financing

• The purpose of the Industrial Development Fund is to provide an incentive for job creation in economically distressed areas of the state. Funds for the renovation of industrial manufacturing buildings are given to eligible counties for their local governments. The amount of funds available is determined by multiplying the number of jobs committed to be created by $2,400, up to a maximum of $250,000 or the cost of the renovation project, whichever is less.
• Industrial Revenue Bonds are available for manufacturing facilities. Tax-exempt bonds are available for a maximum loan of up to $10 million and may be used for land, building, equipment, and issue costs. Taxable bonds are available for projects requiring more than $10 million to provide long-term loans at attractive, below market interest rates. Note, these bonds are not exempt from federal tax; they are however, exempt from North Carolina tax and are typically purchased by banks or sold to the public.

Others

• The Department of Transportation's Rail Access Fund provides grant funding for construction or rehabilitation of railroad access tracks required for a new or expanding industry, which will involve the creation of a number of new jobs or significant capital investment.
• The Road Access Fund provides funds for necessary construction of roads to new or expanded industrial facilities that create a specific number of jobs. The Department of Transportation ranks requests for funds according to the number of employees and truck traffic at the site. The total amount allocated to this fund each year is $2 million.

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