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Financial Incentives |
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North Carolina Tax
Credits
Doing business in Northeastern North Carolina is now even more profitable
for new and expanding companies due to legislation approved by the NC
General Assembly through the Williams S. Lee Act, as amended, and the
Economic Opportunity Act. The following is a summary of tax credits
available for manufacturing, data processing, warehousing/distribution and
central office operations paying at least 110% of the average county wage
(Tier 1*, 100% of average county wage). All credits can be taken against
the income or franchise tax and have a 5-year carry-forward for each
eligible year. Total value of tax credits cannot exceed 50% of annual tax
liability.
*
Maximum credits
available for Tier 1 Counties |
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Investment Tax Credit
A tax credit equal to 7% of the
excess 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 are placed in service.
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Job Creation Tax Credit
New and expanding companies with
at 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% (up to $1000 for each employee trained) against eligible training
expenses.
|
County |
Enterprise Tier |
Threshold for
Investment Tax Credit |
Job
Creation
Tax Credit (per job) |
Worker Training
Tax Credit (per job) |
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Martin |
Tier 1* |
$0 |
$12,500 |
$1,000 |
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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
R&D expenditures.
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Business Property Tax Credit
Companies can receive a
credit equal to 4.5% of tangible business property capitalized under
the tax code, up to maximum single year credit of $4,500. The credit
is taken in five equal installments beginning the taxable year the
property is placed in service.
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Large Investment Projects
Defined as an eligible
business type that invests a minimum of $150,000,000 within a two-year
period, these projects are eligible for a 20-year carry-forward to
allow additional time for credit usage.
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Development Zones
Williamston qualifies as a
State Economic Development Zone and is treated as Tier 1 for the purposes of the wage
standard, the threshold for machinery and equipment investment, and
the credit for worker training. Job creation in these zones nets an
additional $4,000 per job tax credit.
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For more
information
about these state of North Carolina incentives, call Vann Rogerson,
North Carolina's Northeast Partnership at 888-872-8562, or email
vrogers@ix.netcom.com |
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Other
Financial Incentive Programs |
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