2007 Incentives & Financing

• Customized Incentive Program Request

• Corporate Income Tax

• Credits

  • Job Creation

  • Investment in Business Property

  • Investment in Real Property

• Eligible Industry Sectors

• Qualified North Carolina Research Expenses

• Agrarian Growth Zones (AGZ) & Urban Progress Zones (UPZ)

• Job Development Investment Grant Program

• Low Interest Loans & Grants

• Application Fees

• Info Request Email

• Region/Northeast North Carolina County Profiles

North Carolina's Northeast takes a proactive approach to business recruitment and expansion.
Our region qualifies for maximum assistance available to business and industry in North Carolina. North Carolina's Northeast can offer a competitive location package to new and existing businesses that create jobs and investment.  North Carolina's Northeast Commission can also assist your company in identifying low-interest loans and/or grants and financing assistance that may be available for your project.

The following is a summary of tax credits and incentives available for qualifying companies (see Eligible Industry Sectors below) under North Carolina’s new tax credit program, Article J Credits.

Let us help customize an incentive program for you. Contact us today with this email for Incentive Program help and info request.

Corporate Income Tax

The North Carolina corporate income tax rate is 6.9%.

Credit for Creating Jobs

Eligible taxpayers that meet the minimum threshold for new full-time jobs created during the taxable year may claim a credit for each new job created. The credit is taken in equal installments over four years following the year the jobs are created.  Please refer to the table below for the credit amount per job for counties in North Carolina’s Northeast Region. If the taxpayer creates new jobs in an Urban Progress/Agrarian Growth Zone, the applicable threshold is the same as for a development tier one area (5 jobs) and the credit is increased by $1,000. Additionally, if a job located in an Urban Progress/Agrarian Growth Zone is filled by a resident of that zone or by a long-term unemployed worker, an additional $2,000 per job credit is allowed.

Credit for Investing in Business Property

Eligible taxpayers can claim a credit based on the percentage of the cost of capitalized tangible personal property placed in service during the taxable year, in excess of an applicable threshold. This credit is taken in equal installments over four years, beginning in the year after the property is first placed in service. The credit percentage and threshold are based on the tier designation of the county where the property is placed in service. Please refer to the table below for the credit percentage and threshold for counties in North Carolina’s Northeast Region.  If the taxpayer places business property in service in Urban Progress/Agrarian Growth Zone, the applicable percentage is the same for a development tier one area (7%).

Credit for Investment in Real Property

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 tier 1 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. To qualify for this credit, the taxpayer must obtain a written determination from the Department of Commerce.

Eligible Industry Sectors

To qualify for Article 3J Credits, a company’s primary activity must fall under the following eligible types of business:

• Aircraft maintenance and repair

• Air courier services hub

• Company headquarters that creates at least 75 new headquarters jobs

• Customer service call centers

• Electronic shopping and mail order houses

• Information technology and services

• Manufacturing; motorsports facility

• Motorsports racing team

• Research and development

• Warehousing, and

• Wholesale trade

Qualified North Carolina Research Expenses

A taxpayer that has qualified North Carolina research expenses for the taxable year is allowed a credit equal to a percentage of the expenses.

1. Small business. – If the taxpayer was a small business as of the last day of the taxable year, the applicable percentage is three percent (3%).

2. Low-tier research. – For expenses with respect to research performed in an enterprise tier one, two, or three development tier one area, the applicable percentage is three percent (3%)

3. Other research. – For expenses not covered under (1) or (2) above, the percentages provided in the table below apply to the taxpayer's qualified North Carolina research expenses during the taxable year at the following levels:

Agrarian Growth Zones (AGZ) & Urban Progress Zones (UPZ)

Certain areas North Carolina’s Northeast Region have been designated as Urban Progress Zones or Agrarian Growth Zones. Projects located within these zones receive enhanced Article 3J Credits. The City of Roanoke Rapids has been designated as an Urban Progress Zone by the NC Department of Commerce. Request Agrarian Zone or Urban Zone info about where these zones are located.

Job Development Investment Grant Program

The Job Development Investment Grant Program (JDIG) s used to attract businesses to the State by allowing a five-member committee to award grants to businesses based on income tax withholdings from new jobs created by the businesses (from 10% to 75% of withholdings associated with the project) 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, meaning that the Committee has the ability to provide up to $180 million in benefits to the 25 businesses over a 12-year period. 

Low Interest Loans & Grants

North Carolina's Northeast Commission has a long history of identifying and packaging low-interest loans and grants to support new job creation and investment. We can help your company access funding to finance land and building construction, machinery and equipment, working capital and other business financing needs. We can also identify grant funding for infrastructure development, site preparation, building renovation and upfit, and other development needs.

Application Fees

A fee of $500 is due and payable to the NC Department of Revenue for each type of credit the taxpayer claims or intends to claim with respect to an establishment.

For additional information, contact: