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Job Creation + Investment Based Incentives

Raleigh, Wake County, and the State of North Carolina offer various incentives to eligible businesses relocating or expanding in the community. For a comprehensive list of incentives, and the eligibility requirements associated with them, please visit the Raleigh Economic Development website.

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

Raleigh UPZ*

Threshold

$2 million

$0

Credit %

3.50%

7%

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

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.

R&D Tax Credits

The amount of the Research and Development tax credit is based on a percentage of qualified research expenses. Please note the enhanced credits for research performed with North Carolina Universities.**

Businesses with qualified North Carolina research expenses are allowed a credit equal to a percentage of those expenses. The allowable credits are determined by:

Small business (annual receipts less than $1 million): Qualified businesses on the last day of the taxable year are allowed a credit of 3.25%.

Other research: For businesses with annual receipts greater than $1 million, refer to the table below for qualified research expenses during a taxable year:

Qualified Expenses

Rate

$0 - $50 million

1.25%

$50 -$200 million

2.25%

$200 million+

3.25%

** A business with North Carolina university research expenses for the taxable year 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 Fund helps recruit 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.