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On July 22, 2010, Governor Bev Perdue signed legislation to create and extend various economic development
incentives for the state of North Carolina.
The North Carolina tax credits for Growing Businesses (Article 3J) has been extended for two additional
years through December 31, 2012. The credits were enacted to stimulate economic activity and to create new
jobs for the citizens of North Carolina by encouraging and promoting the expansion of existing business and
industry within the state and by recruiting and attracting new business and industry to the state.
There are credits for creating jobs (Sec. 105-129.87), investing in business properties (Sec. 105-129.88),
and investment in real properties (Sec. 105-129.89). The credits are available for businesses with one of the
following primary activities:
- Air courier services hub.
- Aircraft maintenance and repair.
- Company headquarters, but subject to additional eligibility requirements.
- Customer service call centers.
- Electronic shopping and mail order houses.
- Information technology and services.
- Manufacturing.
- Motorsports facility.
- Motorsports racing team.
- Research and development.
- Warehousing.
- Wholesale trade.
The amount of the credit depends on the location of the activity. Credits are greater in counties with
less development. General Statute 143B-437.08 outlines the development tier designation used. The details
on each credit is outlined in the sections referenced above.
Other North Carolina tax credits and incentives that were expanded, extended, or created include:
- Expanded tax credits for production companies increasing the amount of qualifying expenses eligible
for credit from 15% to 25% and raising the credit limit from $7,500,000 to $20,000,000.
- A new tax credit for developing interactive digital media was created.
- The tax credit for recycling oyster shells was extended through December 31, 2012.
- An economic development incentive for Eco-Industrial Parks located in counties not required to perform
motor vehicle emissions inspections was created.
Wood chippers meeting certain requirements are now exempt from sales tax in North Carolina.
If you would like more information or have questions on any of these incentives, please contact us.
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