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Incentives

If a business creates a certain number jobs, invests significantly in equipment and real estate, or performs qualified R&D, it may be able eligible to receive incentives. For a comprehensive list of incentives and eligibility requirements associated with them, please download a copy of the Corporate Relocation Guide [PDF].

Article 3J Tax Credits

Credit for Creating Jobs

Eligible taxpayers that meet a minimum threshold of 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.

Credit for Investing in Business Property

Eligible taxpayers may claim a credit based on a percentage of the cost of capitalized tangible personal property that is placed in service during the taxable year, in excess of an applicable threshold. The credit is taken in four equal installments over four years, beginning the year after the property is first placed in service.

* Raleigh has created a designated Urban Progress Zone (UPZ) that significantly enhances the value of the tax credits.

View the Official Urban Progress Zone Map (PDF)

For more detailed information about eligibility and minimum requirements, please visit the portion of the North Carolina Department of Commerce website devoted to Article 3J.

Research and Development Tax Credits

The value of the R&D tax credit is based on a percentage of qualified research expenditures.

Businesses with annual receipts of less than $1 million are allowed a credit of 3% of qualified research expenditures.

For businesses with annual receipts greater than $1 million, please refer to the table below.

Please note - a business with North Carolina university research expenses is allowed a credit equal to 20% of those expenses.

For more detailed information about the R&D tax credits, please visit the portion of the North Carolina Department of Commerce website devoted to R&D tax credits.

Job Development Investment Grant

The Job Development Investment Grant (JDIG) is a discretionary incentive that provides sustained annual grants to new and expanding businesses measured against a percentage of withholding taxes paid by new employees. Only 25 grants are available statewide annually.

Due to the size and scope of this program, JDIG is only available for very large economic development projects.

For more information about JDIG, please visit the portion of the North Carolina Department of Commerce website devoted to JDIG.

One North Carolina Fund

The One North Carolina Fu nd helps rec ruit and expand quality jobs in high value-added, knowledge-driven industries. The fund is competitive and the location or expansion must be in competition with another location outside the state.

For a company to be considered:

• The Company must agree to meet an average wage test.
• Local units of government (city or county) must agree to match financial assistance to the company.

For more information about the One North Carolina Fund, please visit the portion of the North Carolina Department of Commerce website devoted to OneNC.

Local Incentives

Wake County, and several of the municipalities within Wake County, have agreed to participate in local incentives when the project results in the creation of new jobs and substantial capital investment.  To learn more about these programs, please contact a member of the Wake County Economic Development team.