SPOTLIGHT PROGRAMS

Job Development Investment Grant(JDIG): The JDIG program is aperformance-based, discretionary incentive that provides cash grants to new andexpanding businesses to help offset the cost of locating or expanding abusiness facility in North Carolina. Companies can qualify for the incentivebased on the project location, number of jobs within a five-year period, andthe project average wage. The maximum grant amount for a project is dependenton the County Tier in which it is located. Grants can be awarded for a periodof up to 12 years and cannot exceed $16,000 per new job in a year. The maximumgrant award is calculated based on the following:

-      Tier 1 County (least developed): Grant award of up to 80% of personal income taxesgenerated by new project jobs. No portion of the annual grant is transferred tothe Utility Account.

-      Tier 2 County:Grant award of up to 75% of personal income taxes generated by new project jobs.90% of the annual grant is payable to the business and 10% is transferred tothe state Utility Account for rural infrastructure development.

-      Tier 3 County (most developed): Grant award of up to 75% of personal income taxesgenerated by new project jobs. 75% of the annual grant is payable to thebusiness and 25% is transferred to the state Utility Account for ruralinfrastructure development.

Projects that invest at least $500million and create at least 1,750 jobs can receive a “high-yield”designation that allows them to earn grants of up to 90% of new personal incomewithholdings for 20 years. The base period to create eligible jobs is up to 5years.

A “Transitional Project” designationenables a company to define two phases of the project during the initial JDIGagreement. The first phase of the project must include at least $1 billioninvestment and 1,750 jobs, during which it will be treated as a high-yieldproject. The company must exercise an option to expand the job and investmentcommitments up to at least 3,875 jobs and $3 billion within the first 36 monthsto trigger Phase II and reclassification as a transformative project.

Projects that invest at least $1 billionand create at least 3,000 jobs can receive a “transformative” designation thatallows them to earn grants up to 90% of the personal income withholdings. Thebase period to create eligible jobs is up to 10 years, and the maximum grantterm is the base period plus 30 years.

One North Carolina Fund (OneNC): The OneNC program is a discretionary cash grant awarded to reimburse project capital costs such as installation or purchase of equipment, structural repairs and renovations, and construction or improvements to utility lines and associated equipment. Awards are based on the number of jobs created, investment level, project location, and economic impact of the project. OneNC awards require a local funding match of up to depending on the applicable county tier:

-      Tier 1 County (least developed): Requires a 3:1 match of OneNC funds to local funds.

-      Tier 2 County:Requires a 2:1 match of OneNC funds to local funds.

-      Tier 3 County (most developed): Requires a 1:1 match of OneNC funds to local funds.

TAX CREDITS

Historic Preservation Tax Credit: The owner or lessee of an income-producing" certified historic structure" that qualifies for the federal historic tax credit is eligible for A tiered state tax credit on qualified rehabilitation costs. A 15% state credit applies to the first $10 million of eligible expenses, and a 10% state credit applies to the next $10 million, fora maximum eligible rehabilitation cost of $20 million. An additional 5% bonus is available for projects located in a Tier 1 or Tier 2 county or an eligible targeted investment site, applicable to costs up to the $20 million cap. Unused credits may be carried forward for 9 years.

‍

TAX EXEMPTIONS

Sales and Use Tax Discounts, Exemptions and Refunds: North Carolina offers a number of sales and use tax exemptions including:

Manufacturing

·       Mill machinery and equipment used for manufacturing.

·       Fuel, piped natural gas and electricity used formanufacturing.

·       Raw materials used for manufacturing.

Large Fulfillment Facility

·       Large fulfillment facility equipment (Invests more than $100 million and creates 400 jobs within five years).

Data Centers

·       Electricity and support equipment at a Qualifying Data Center (requires investing $75 million within five years)

·       Electricity and business personal property at a Eligible Internet Data Center (requires investing $250 million and locating in tier one or two county).

·       Computer software at any data center.

Other Exemptions

·       Pollution control and abatement equipment.

·       Equipment for Research and Development in the Physical, Engineering, and Life Sciences companies. (NAICS 54171) Software Publishers (NAICS 5112), and Industrial Machinery Refurbishing (NAICS 811310).

·       Equipment used for fabrication of metal work (annual gross receipts must meet or exceed $8 million).

DIRECT FINANCIAL ASSISTANCE

Utility Account Grants: A discretionary cash-grant program, funded through the Industrial Development Fund, that provides grants to infrastructure projects in the 80 most distressed counties in North Carolina. Grants are awarded to local governments for construction or improvements to publicly owned infrastructure, such as water, sewer, gas, telecommunications, transportation, and electrical utility lines. Utility Account grants require a local cash match of at least 25% of the grant amount for projects not located in the state’s 25 most distressed counties (Tier 1).

Public Infrastructure and Transportation Grants: North Carolina offers a number of different programs to fund public infrastructure development, including:

- Community Development Block Grant Economic Development Program: Primarily serves low- and moderate-income communities, focusing on housing, living environments, and economic opportunities, with some urban counties receiving funds directly from HUD.

- Rural Division’s Economic Infrastructure Program: Provides local governments grants for projects that will improve public infrastructure and create new, full-time jobs. Requires a 5% cash match from applicants and includes claw-back provisions if job creation goals are not met.

- NCDOT’s Rail Industrial Access Program: Provides funds to assist with constructing or improving railroad spur tracks needed for a new or expanding company. Provides up to 50% of total project costs, with a maximum cap of $500,000, and projects must be pre-approved before companies decide to expand in the state.

- North Carolina’s Golden Leaf Infrastructure Grants: Focuses on economic development in tobacco-dependentor economically distressed areas and requires matching funds from applicants.

Biotechnology Center EconomicDevelopment Award: The North CarolinaBiotechnology Center provides performance-based grants of up to $100,000 tolocal units of government supporting life science company expansion orrelocation in North Carolina. These grants are focused on net new job growthand are designed to help attract and retain life science jobs and investment.Companies can leverage additional support from partners like the North CarolinaCommunity College System and the Department of Commerce.

JOB TRAINING

Customized Training Program (NCEdge):The Customized Training Program supports businesses in North Carolina by providing tailored workforce training to new, expanding, and existing companies. It aims to improve job growth, technology investment, and productivity. Training is delivered through a network of 58 community colleges statewide. The program ensures that businesses have a skilled workforce capable of meeting industry-specific needs.

On-the-Job Training (OJT): OJT offers wage reimbursements to employers for training new employees with limited skills. Employers can receive reimbursements ranging from 50% to 75% of wages for up to six months. The reimbursement rate is higher (75%) for businesses with fewer than 250 employees. This program helps offset the initial cost of training and supports employee skill development while boosting productivity.

Incumbent Worker Training Program: This program assists businesses in training existing employees to enhance their skills and improve overall productivity. It helps offset the cost of training employees who have been with the company for at least six months. Businesses are required to contribute to the cost based on their size. The program is designed to help workers advance in their careers while enabling employers to improve their workforce capabilities.

GoldenLEAF Workforce Grants: GoldenLEAF Foundation provides funding for workforce development projects in rural North Carolina. These grants support initiatives that address skill gaps in the local workforce and align with business needs. Funding is directed towards the acquisition of training equipment or the construction and renovation of training spaces. Projects must deliver transferable skills and be available to the public.

LOCAL INCENTIVES

City & County Grants: Local property tax abatements, common with local governments across the US, are prohibited by statute in North Carolina. Instead, cities and counties in the state have the ability to provide cash grants to incentivize job creation and capita investment. Typically, these cash grants are based on the incremental local revenue generated by a project and function as cash refunds of local property taxes generated by a project. Grant terms and awards can vary widely across cities and counties based on community policies, development needs, and other local priorities.

Last updated:  April 2026