General Information Flyer: Incentives
Iredell County and the Town of Mooresville have adopted separate, but identical Investment Grant Program Policies. Through the MSIEDC, a new or expanding business can request a grant. Iredell County Board of Commissioners and Town of Mooresville Board of Commissioners have supported economic development with the intent of growing the tax base, employer diversification and job creation. It is essential, not only in attracting new business investment, but to encourage existing business to expand and reinvent in their operations.
The Investment Grant program is a discretionary policy. The Town and County may provide up to a five-year rebate to companies investing in Iredell County. The rebate is established by a contract with Iredell County and/or the Town of Mooresville. Business locating within both jurisdiction may request incentive grants from one or both entities. If the Company meets all of the criteria in the contract, including a minimum capital investment, a portion of the property tax will be returned as a rebate.
The following criteria may determine each incentive package:
1. Total investment made by the company
2. Number of new jobs created
3. Wages paid to full time employees
State Incentive Programs:
The Article 3J Credits July, 2006, the NC General Assembly passed legislation (House Bill 2170) that created a new tax credit program, Article 3J Credit. Article 3J provides three types of tax credits to eligible taxpayers that undertake qualifying activities in North Carolina: 1) Credit for Creating Jobs, 2) Credit for Investing in Business Property, and 3) Credit for Investment in Real Property (tier 1 only). These credits may be combined to offset up to 50% of the taxpayer’s state income and franchise tax liability, and unused credits may be carried forward for up to five years (15-year carry-forwards apply to the Credit for Investing in Real Property and 20-year carry-forwards exist for taxpayers that invest at least $150 million over a two-year period).
Industrial Revenue Bonds (IRBs) or Industrial Development Bonds may be used by companies engaged in some type of manufacturing for the acquisition of real estate, facility construction, and/or equipment purchase. IRBs fall under three issuance types: Tax Exempt, Taxable, and Pollution Control/Solid Waste Disposal Bonds. Regulations governing bond issuance are a combination of federal regulations and North Carolina statutes. The amount each state may issue annually is designated by population
North Carolina Small Cities Community Development Block Grant Program These grants may be obtained by local government (municipal and county) to be used for projects involving a specific business that will create new jobs. With participating bank, loans may be made to private businesses to fund items such as machinery and equipment, property acquisition, or construction. Assisted project activities must benefit persons (60% or more) who were previously (most recent 12 months) in a low or moderate family income status.
One North Carolina Fund The One North Carolina Fund may provide financial assistance to those businesses or industries deemed by the Governor to be vital to a healthy and growing State economy and are making significant efforts to expand in North Carolina. The funds is a competitive fund and the location or expansion must be in competition with another location outside of North Carolina. Criteria for the program are available through the NC Department of Commerce Finance Center.
Job Development Investment Grant This discretionary incentive may provide sustained annual grants to new and expanding business measured against a percentage of withholding taxes paid by new employees. The program is competitive and the Economic Investment Committee, which oversees it can award up to 15 grants a calendar year. Contact the NC Department of Commerce Finance Center for the detailed criteria.
Industrial Access/Road Access Fund Administered by the Department of Transportation, this program provides funds for the construction of roads to provide access to new or expanded industrial facilities.
Rail Industrial Access Program The Rail Industrial Access Program provides grant funding to aid in financing the cost of constructing or rehabilitating railroad access tracks required by a new or expanding industry which will result in significant number of new jobs or capital investment. This funding helps ensure that companies have the railroad tracks needed to transport freight and materials. Funding for project is contingent upon application approval prior to the industry making decision to locate or expand their facility in North Carolina
NC Port User Tax Credit Companies that utilize the NC ports in Wilmington or Morehead City can become eligible for significant tax credits.