North Carolina

  • Job Development Investment Grant (JDIG) is a performance-based, discretionary incentive program based upon the percentage of the personal income tax withholdings associated with the project, the project location, number of jobs and average wage providing cash grants directly to new and expanding companies and is disbursed over 12 years.  The JDIG program also has two provisions.  The High-Yield Project provision (HYP) is worth up to 90% of personal income tax withholdings for up to 20 years if it the project invests $500 M while creating at least 1,750 jobs.  The second, the Tranfomative Project provision, is available when a company is investing at least $1 billion and creating at least 3,000 jobs.  Under the Transformative provision, a 90% grant may extend to 30 years directly to new and expanding companies aiming to offset the cost of locating or expanding a facility in the State. There are no restrictions on the use of the funds.
  • One North Carolina Fund is a discretionary, cash-grant program based on the number of jobs created, level of investment, location, economic impact, and importance to the State and requires that a local government provide matching funds depending upon its county-tier designation.
  • Department of Commerce Rural Division Rural Building Reuse performance-based incentive provides reimbursement for eligible expenses to renovate or expand the footprint of an existing building , where the reimbursement amount is a determined by the project location, number of jobs, capital expenditures, average wage, economic impact, and importance to the State.
  • North Carolina’s Data Centers Sales & Use Tax Program provides three sales and use tax exemptions for the purchase of certain items at qualifying data centers, eligible internet data centers, and other data centers that permits a qualifying data center may receive an exemption on purchases of electricity if at least $75 M of investment has occurred; at least $250 M in investment if an internet datacenter, and computer software may be exempted from sales and use tax if software is sold to an eligible data center.
  • Department of Commerce Rural Division provides Economic Infrastructure Grants in designated counties based upon a tiered system with economically disadvantaged counties gaining more resources, a Utility Account cash-grant program providing incentives for projects locating in its most distressed counties, a Rail Industrial Access Incentive Program provides infrastructure grants associated with rail related projects, and the state uses its Community Development Block Grant Program to provide funding directly to local municipal or county governments for projects spurring job creation and retention through infrastructure development or vacant building renovations and expansions.
  • Recycling Property Tax Exemption excludes equipment and facilities used exclusively for recycling and resource recovery from property tax liability.
  • North Carolina may exempt machinery, equipment, electricity, fuel and natural gas, raw materials from its sales and use tax and does not levy a property tax on inventories owned by contractors, manufacturers, and merchants.
  • Project Development Financing allows local governments to borrow money to fund public improvements like transit stations, schools, and public parking within a designated area while attracting private investment, the debt incurred by the funding of the public improvement is both secured and repaid from additional property tax revenue over time considering an area’s new development.