North Carolina offers a wide range of incentives and tax programs designed to encourage business development, job creation, and investment across the state.  These programs are particularly beneficial to industries such as manufacturing, technology, life sciences, and clean energy.  With robust incentives, North Carolina is a great destination for businesses seeking to expand or relocate.  Below are some of the key business incentives available in North Carolina.

North Carolina Job Development Investment Grant (JDIG)

Overview

The JDIG program is designed to attract and retain high-quality jobs in the state.  It is a performance-based grant program that rewards companies for creating new jobs that meet certain wage and employment standards.

Eligibility

• The business must create a minimum number of new, full-time, permanent jobs within a specific period.

• The jobs must pay at least 110% of the county’s average wage.

• The business must operate in a qualifying industry such as manufacturing, technology, or clean energy.

Incentive Value

• JDIG grants are performance-based and provide a rebate of a percentage of the withholding taxes paid by employees in the newly created jobs.

• Grants can be awarded up to 100% of the new withholding taxes, depending on the size of the project and the area’s economic needs.

Application Process

Businesses must apply to the North Carolina Department of Commerce (DOC), submitting a detailed application that includes the projected number of jobs, wage rates, and capital investments.

North Carolina Industrial Development Fund (IDF)

Overview

The IDF is a loan and grant program aimed at financing infrastructure improvements in economically distressed areas.  The program helps local governments make critical improvements that will attract private sector investment and create jobs.

Eligibility

• The business must be located in or relocating to an economically distressed area in North Carolina.

• Local governments or economic development organizations can apply on behalf of businesses.

Incentive Value

• The IDF provides low-interest loans and grants to cover infrastructure improvements such as roads, water systems, and sewer systems.

• The amount of funding depends on the scope of the infrastructure project and the economic impact of the business.

Application Process

Applications are submitted through DOC’s Rural Economic Development Division.  Projects must demonstrate how the improvements will lead to job creation and economic development.

North Carolina Research and Development Tax Credit

Overview

North Carolina offers a Research and Development (R&D) Tax Credit to businesses that invest in innovative technologies and processes.  This tax credit aims to stimulate research activities in sectors such as manufacturing, biotechnology, and information technology.

Eligibility

• The business must conduct qualifying research and development activities in North Carolina.

• The R&D activities must aim to improve or develop new products, processes, or technologies.

• The business must meet specific expense thresholds set by the state.

Incentive Value

• The credit is equal to a percentage of the eligible R&D expenditures, with a specific amount for in-state wages and supply costs related to R&D activities.

• The value of the credit is capped annually.

Application Process

Businesses must apply to the North Carolina Department of Revenue, providing documentation of the R&D activities and expenditures.

North Carolina Renewable Energy Tax Credit

Overview

The North Carolina Renewable Energy Tax Credit is designed to incentivize businesses that invest in renewable energy projects, such as solar, wind, and biomass systems. This tax credit supports businesses that improve energy efficiency and contribute to the state’s clean energy goals.

Eligibility

• The business must invest in renewable energy systems, such as solar panels, wind turbines, or biomass energy projects.

• The renewable energy systems must meet specific energy efficiency standards set by the state.

Incentive Value

• The tax credit covers a percentage of the cost of installing renewable energy systems.

• The amount of the credit depends on the type of renewable energy system and its contribution to energy savings.

Application Process
Businesses must apply through the North Carolina Department of Revenue (DOR), providing documentation of the renewable energy investments and expected energy savings.

North Carolina Economic Catalyst Program

Overview

The North Carolina Economic Catalyst Program supports large-scale capital investment projects that result in significant job creation in the state.  This program is geared toward industries like manufacturing, life sciences, and technology.

Eligibility

• The business must create a significant number of new jobs (typically 50 or more) within a short period (usually 3-5 years).

• The business must make a substantial capital investment in the state.

• The new jobs must meet wage standards defined by the program.

Incentive Value

• The program offers performance-based incentives, including grants and rebates for job creation and capital investments.

• The value of the incentives depends on the number of jobs created, the investment made, and the industry involved.

Application Process

Businesses must apply to DOC, submitting a business plan with job creation, wage projections, and capital investment details.

North Carolina Investment Tax Credit

Overview

The North Carolina Investment Tax Credit encourages businesses to invest in new machinery and equipment that will improve their manufacturing processes.  The program is particularly beneficial to businesses in the manufacturing sector.

Eligibility

• The business must invest in new machinery and equipment used in manufacturing, processing, or production.

• The investment must meet a minimum threshold set by the state.

Incentive Value

• The tax credit is equal to a percentage of the value of the machinery and equipment purchased.

• The credit can be used to offset state corporate income taxes.

Application Process

Businesses must apply to DOR, providing documentation of the investment and associated expenses.

North Carolina Film and Entertainment Grant Program

Overview

The North Carolina Film and Entertainment Grant Program is designed to attract film, television, and digital media productions to the state.  The program offers grants and tax incentives for productions that meet specific spending and hiring requirements.

Eligibility

• The business must engage in the production of film, television, or digital media projects in North Carolina.

• The production must meet minimum in-state spending requirements and create jobs for local residents.

Incentive Value

• The program provides grants based on qualifying expenditures and the number of local jobs created.

• Productions may be eligible for rebates on eligible production costs, such as labor, set construction, and equipment.

Application Process

Businesses must apply through the North Carolina Film Office, submitting production budgets and financial documentation.

North Carolina Workforce Development Programs

Overview

North Carolina offers several workforce development programs to help businesses train their employees.  These programs provide grants and tax credits for businesses that invest in employee skills training and development.

Eligibility

• The business must be located in North Carolina and provide training programs for employees.

• The training must focus on improving skills and productivity, particularly in high-demand sectors like manufacturing, healthcare, and technology.

Incentive Value

• Programs provide funding for training costs, including instructor fees, course materials, and employee wages.

• Businesses may also be eligible for tax credits related to training costs.

Application Process

Businesses must apply through DOC, providing a detailed training plan and funding request.