The Eastern North Carolina Region
Doing business in the Eastern North Carolina Region is now even more profitable for new and expanding companies due to legislation recently approved by the NC General Assembly.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 equals 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.
Corporate Income Tax
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.
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 $500 for each employee trained) against eligible training expenses.Tier 1 Counties can receive a maximum credit of $1,000 per employee trained.
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.
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.
Special Development Zone
In addition to normal tax incentives: add $4000 per job tax credit; use a machinery & equipment threshold of $0; use 100% of wage. Zones are located in certain portions of Wilson.