Incentives / Assistance Programs

Lenoir County Incentives
The Lenoir County Economic Development Department works closely with local governments to develop financial packages for industries that are expanding or relocating to the area. Local performance based incentives are evaluated on a case by case basis and are determined by the level of capital investment and job creation. These local programs are in addition to significant state job and investment tax credits and training programs.

North Carolina Assistance To Qualifying Businesses
North Carolina provides all qualified companies with financial programs and advantages that will lower the cost of doing business, thus impacting a company’s bottom line.
The North Carolina Department of Commerce Finance Center provides a “one-stop” financial center to which relocating companies and existing employers can come for an explanation of the financing alternatives available in North Carolina.

FINANCIAL INCENTIVES
William S. Lee Tax Credits: Repealed for business activities that occur on or after January 1, 2007.  Article 3J Credits became effective for taxable years beginning on or after January 1, 2007.

Industrial Revenue Bonds: Industrial Revenue Bonds (IRBs) or Industrial Development Bonds may be used by companies engaged in some type of manufacturing for the acquisition of real estate, facility construction, and/or equipment purchase. IRBs fall under three issuance types: Tax Exempt, Taxable, and Pollution Control/Solid Waste Disposal Bonds. Regulations governing bond issuance are a combination of federal regulations and North Carolina statutes. The amount each state may issue annually is designated by population.

North Carolina Small Cities Community Development Block Grant Program: These grants may be obtained by local governments (municipal and county) to be used for projects involving a specific business that will create new jobs. With a participating bank, loans may be made to private businesses to fund items such as machinery and equipment, property acquisition, or construction. Assisted project activities must benefit persons (60% or more) who were previously (most recent 12 months) in a low or moderate family income status.

Industrial Development Fund: The industrial Development Fund (IDF) assists municipal or county governments with financing for industries eligible through the William S. Lee Act in areas of the State designated as Tier I, II, and III areas. The amount funded depends on the number of new, full-time jobs created and may be used by local units of government for infrastructure improvement (in the form of grants) or for building renovation and equipment (in the form of loans). The fund may not be used for acquiring land or buildings or for constructing new facilities.

Business Energy Loans: These loans may be used by businesses for facilities or projects that demonstrate energy efficiency or the use of renewable energy resources resulting in energy cost savings.

Industrial Access/Road Access Fund: Administered by the NC Department of Transportation, this program provides funds for the construction of roads to provide access to new or expanded industrial facilities.

Rail Industrial Access Program: This program provides grant funding to aid in financing the cost of constructing or rehabilitating railroad access tracks required by a new or expanded industry which will result in a significant number of new jobs or capital investment.

TAX CREDITS
The North American Industry Classification System (NAICS) designations for certain manufacturing, warehousing, wholesale trade, electronic mail order houses, air courier services, customer service centers, and central office operations that meet size, wage and tier county requirements are eligible for credits against the income or franchise tax and have a five-year carry-forward for each eligible year. The total value of tax credits cannot exceed 50% of the annual tax liability.

Investment Tax Credit: A tax credit equal to 7% of the value above the applicable threshold of machinery and equipment placed in service is available to new and expanding companies. The credit is taken in equal installments for seven years after the machinery and equipment is placed in service. An eligible business that invests $150 million or more within a two-year period is eligible for a 20-year carry-forward.

Job Creation Tax Credit: New and expanding companies with a least five full-time employees can take a credit for each new job created in equal installments over four years.

Worker Training Tax Credit: Companies providing training for five or more employees can take a credit of 50% against eligible training expenses. Tier 1 Counties can receive a maximum credit of $1,000 per employee. All other tiers receive a maximum of $500 per employee.

Research & Development Tax Credit: Companies qualifying for the federal Research and Experimentation Tax Credit can take a state tax credit equal to 5% of the state’s apportioned share of the company’s research and development expenditures.
Business Property Tax Credit: The credit equals 4.5% of tangible business property capitalized under the tax code, up to a maximum single year credit of $4,500 taken in five equal installments beginning in the taxable year the property is placed in service.

Central Administrative Office Credit: For purchased property, the credit equals 7% of the property cost. For leased property, the credit equals 7% of the lease payments over a 7-year period plus non-reimbursed property improvement expenditures. The maximum credit is $500,000. To qualify, the company must hire at least 40 new full-time administrative positions in the first year.

Special Development Zone Credit: Development zones located in eligible cities are treated as Tier 1 for purposes of wage standard, threshold for capital investment, and worker training credit. Job creation nets an additional $4,000 per job credit. (Much of Lenoir County, including the NC Global TransPark, is in a Special Development Zone).

NEW AND EXPANDING INDUSTRY TRAINING
Administrated by the North Carolina Community College System, this Customized Training Program can provide companies, creating 12 or more jobs in a year, free customized training programs for their new employees.