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 contact James Sauls.

Tax Credits

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.

R&D Tax Credits

The amount of the Research and Development tax credit is based on a percentage (from 1.25% - 3.25%) of qualified research expenses. Additionally, eligible expenses for research performed with North Carolina Universities qualifies for a 20% credit.

Grants

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.

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 more information about the tax credits and grant programs, please contact James Sauls.