Incentives & Cost Savings   It Costs Less To Do Business In Eastern North Carolina.   The best part of America’s best state for business also happens to be the most affordable part. In addition to a generous array of tax incentives, Eastern Region companies also benefit from a host of other cost saving factors, including labor, real estate, transportation and living costs that are the lowest in the state.         State Incentives to Qualifying Businesses.           William S. Lee Act Provides tax credits against state income, franchise or gross premiums tax returns for job creation, investment, worker training and research and development. Tax credits are determined by county tier status. Click here for county tier designations.         Industrial Revenue Bond May be used by companies engaged in some type of manufacturing for the acquisition of real estate, facility construction, and/or equipment purchase. Tax Exempt, Taxable, and Pollution Control/Solid Waste Disposal Bonds are available.         Industrial Development Fund Provides grants and loans to eligible units of government for infrastructure development in Tier 1, 2 and 3 counties. Grants may be used for the construction or improvement of water, sewer, gas, rail and electrical utilities. Loans are restricted to investments in privately owned or maintained assets such as the purchase of machinery and equipment or building renovations. Level of funding depends on the number of jobs created.           Job Development Investment Grant Approved companies can receive a grant of 10% to 75% of withholding taxes associated with new jobs at the project for a period of up to 12 years. Projects must demonstrate a net increase in jobs and that a grant is needed to secure the project for the state.           Community Development Block Grants This program provides grants and loans for infrastructure development. Projects will involve a specific business that will create new jobs, or sometimes retain jobs. Assisted project activities must benefit persons of which 60% or more were previously in a low or moderate family income status per HUD criteria.           Other Tax Credits For:     • Investing in renewable energy property • Investing in dry-cleaning equipment that does not use hazardous substances • Investing in large or major recycling facilities • Rehabilitating historic structures • Low income housing • Construction of renewable fuel facilities         Port User Fees Tax Credits Customers, business or individual, of the North Carolina Ports at Morehead City and Wilmington who pay North Carolina income taxes can qualify for port user tax credits. The tax credit is earned on cargo wharfage and handling fees (in or out) charged by the North Carolina State Ports Authority. The credit is the amount by which current-year fees exceed the average of the past three years.   Road Access Program Projects eligible for assistance from the Department of Transportation may be any industrial or manufacturing factory, mill, assembly or fabricating or industrial research development or laboratory facility, or industrial processing facility or expansion of existing such facilities and recreational facilities that provide significant impact of employment and attraction of people from other sections of North Carolina and from out of state. Approval of such requests will be based primarily upon the initial number of employees as compared to the road improvement cost.         Rail Industrial Access Program Provides grant funding to aid in financing the cost of construction or rehabilitating railroad access tracks required by a new or expanded industry which will result in a significant number of new jobs or capital investment. Grant recipients may receive a maximum of 50% of total project costs depending on the Department's evaluation of economic benefits and fund available.           Central Administrative Tax Credit A taxpayer that has purchased or leased property and begins to use it as a Central Administrative Office is allowed a credit equal to 7% of the eligible investment amount. Over forty (40) full-time administrative employees must be hired during the taxable year the property is first placed in service.         Real Property Tax Credit Available to eligible industries that make an investment of $10 million or more in real property in a Tier 1 or Tier 2 county and hires 200 or more workers over a twoyear period. The credit is calculated as 30% of the company's eligible investment in such things as land, infrastructure, and construction of buildings and fixtures.                                                                                       Other Cost Saving Factors.   • Right to Work State, lowest union presence in the nation, under 1.0% in the region. • Unemployment Insurance and Workers Compensation Rates among the lowest in the 50 states. • Wage rates below national and state levels. • Free job specific workforce training at nationally acclaimed community colleges. • Construction, housing, per capital tax burden, cost of living and transportation costs well below national levels. • State Certified Industrial Sites. • No inventory or intangible taxes. • No sales tax on raw materials. • Temperate four-season climate, few work stoppages or transportation and construction delays. • Competitive natural gas and electric rates. • Ready access to markets, comprehensive state transportation network with connection to more than 170 million US and Canadian consumers within a 700 mile radius.       • Competitive utility rates below the national average.     • No local or state sales taxes on custom computer programs and no property tax on computer software.     • Pollution Abatement Equipment: qualifying property (real and tangible) used to reduce air or water pollution is subject to the 1 percent state sales tax as "accessory to manufacturing machinery." Personal property used exclusively for the prevention or reduction of dust in textile plants is also exempt from local property tax.     • Recycling Equipment: Equipment or facilities installed for the purpose of recycling solid waste or resource recovery from solid waste receives the same treatment under the tax laws as that given to pollution abatement.     • OSHA Equipment: The cost of equipment and facilities mandated by the Occupational Safety and Health Act may be amortized over 60 months for income tax purposes.     • Equipment to Reduce Hazardous Waste: Equipment and facilities acquired for the purpose of reducing the volume of hazardous waste generated may be amortized over 60 months for income tax purposes. The cost of such equipment and facilities is excluded from the capital stock base in computing the franchise tax.

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