One North Carolina Fund (One NC): Discretionary program offers performance-based grants to businesses that create new jobs and make capital investments. In Tier 1 and Tier 2 counties, a business must create at least 20 jobs with a minimum average wage that meets or exceeds the average county wage. In Tier 3 counties, a business must create at least 40 jobs with a minimum average wage that is at least 110% of the average county wage or the state average wage, whichever is lower. The average incentive amount ranges from $1,000 to $3,000 per job depending on the tier level of the county where the project is located. As a general rule, businesses that locate or expand in Tier 1 counties which are classified by the State as the most economically distressed will be eligible to receive a larger incentive award than a similar project located in a Tier 2 or Tier 3 county. This program requires a local funding commitment.
Funds must be used for the purchase or installation of equipment, repairs or construction to facility, or on infrastructure improvements.
Job Development Investment Grant (JDIG): This program provides discretionary grants to new and expanding businesses that create new jobs in North Carolina. JDIG benefits are based on state income tax revenue generated by new jobs. As a business ramps up employment and satisfies annual investment and job creation targets, the JDIG program offers a rebate equal to the percentage of income tax withholdings associated with the newly created jobs. The maximum JDIG award in most areas of the state is 75% of income tax withholdings or 80% for businesses that locate in Tier 1 counties. An enhanced level of JDIG benefit is available for “mega” or “high-yield” projects which are defined as projects that involve a minimum capital investment of $500 million and result in the creation of at least 1,750 jobs. JDIG payments are disbursed annually to qualifying businesses for up to 12 years. Mega or “high-yield” projects may receive JDIG grants for up to 20 years with a business being eligible to claim a JDIG benefit equal to 100% of income tax withholdings if investment and job creation obligations are met for 3 consecutive years.
Public Infrastructure and Transportation Grants: North Carolina offers several different programs to fund public infrastructure development to support business expansion and attraction projects. Programs include the Community Development Block Grant Economic Development Program, Utility Account, the Rural Division’s Economic Infrastructure Program, NCDOT’s Rail Industrial Access Program, and the state Dept. of Commerce’s Joint Economic Development Program with the NCDOT.
NCWorks Incumbent Worker Training Grants: Businesses can receive a reimbursement of up to $60,000 for eligible costs associated with training employees.
Sales and Use Tax Discounts, Exemptions and Refunds: North Carolina offers reduced rate allowances on certain parts, accessories and construction supplies for eligible industries and manufacturing processes. The Data Center Infrastructure Act offers sales, property and utility sales tax exemption to data center providers and occupants that have collectively invested at least $75 million in private funds in a given facility.
Industrial Revenue Bonds: Provides tax-exempt financing for eligible new or expanded manufacturing facilities, certain solid waste disposal facilities, and sewage disposal facilities.
Last updated: May 2017