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GOVERNMENT/
TAX RATE INFO

Incentive Packages for Business/Industry

Legislation that passed in 1996, and amended in 1998, 1999, 2000, 2001, and 2002 can provide certain tax credits for new businesses locating in our state as well as expanding industries.

• JOBS CREATION TAX CREDIT
  
  Jobs created by expansions will provide a tax credit to the company of $4,000 for each new job created above a threshold of five (5). This credit is taken in equal installments over a 4-year period against the companys North Carolina tax liability. Should the company not be able to utilize their annual credit in one of the four (4) years, there is an additional five (5) year carry-forward period.
  
  
• INVESTMENT TAX CREDIT
  
  Your company will probably qualify for North Carolina investment tax credit. The investment tax credit equals 7% of the excess value of added machinery and/or equipment above a threshold of $100,000 in Mitchell County. This credit is taken in equal installments over the seven (7) years after the equipment has first been placed in service. As with the Jobs Creation Tax Credit, there is an additional five (5) year carry-forward.
  
  
  • If installation of machinery and/or equipment related to one
    Project should span two (2) tax years, the company has to meet the
    threshold requirement for only (1) of the two (2) years.
    
    
• WORKER TRAINING TAX CREDIT
  
  
  • Must train 5 or more eligible employees
    
    
  • Scope of Training-Training is limited to off-line training and training that occurs at the production on work site where the eligible employee is shadowing one or more employees, or where the primary focus of the trainees activity is training through formal instruction.
    
    
  • The credit claimed per employee is equal to the wages (not related to production schedules) that are paid to the eligible employee during the training, not to exceed $500.
    
    (NOTE: Entire credit is taken in the tax year in which training occurred)
    
    
• ADDITIONAL INFORMATION
  
  In addition to the tax credit outlined above, the State of North Carolina provides many other services to assist companies with their new investment and/or expansions. Listed below are some of the most frequently utilized:
  
  
  • Employee Training: Provided by the North Carolina Community College System services include the following:
    
    
  1. Reimburse salaries and per diem expenses of company employees assigned to the project as temporary instructors. This applies if the company sends new local employees to another facility to become trainers and/or if employees from another location become temporary trainers at the local plant. This can apply to pre-employment or on-the-job training. SPECIAL NOTE: Outside instructors, such as consultants, are eligible also and you can be reimbursed.
     
     
  2. Provide instructional materials and supplies.
     
     
  3. Reimburse the company 50% of the costs of non-salvageable materials used in production training with a cap of $1000 per trainee.
     
     
  4. Provide training at your facility or provide other locations as needed.
     
     

Mayland Community College is located in Spruce Pine and offers several employee training services, including CNC operations to industries within the Tri-County area. Over a three (3) year period, Mayland has funded nearly one (1) million dollars' worth of employee training in the Tri-County area. These services were funded primarily by State money that Mayland has been awarded for business and industry training programs in Mitchell County.

• FINANCIAL ASSISTANCE
  
  Through our Commerce Finance Center, Mitchell County may offer programs that include Industrial Development Fund grants and low-interest loans, Industrial Revenue Bond and Community Development Block Grant financing and other special financial assistance to companies making significant investments in Mitchell County.
  
  
• CORPORATE INCOME TAX RATE
  
  The North Carolina Corporate Income Tax Rate was reduced to 6.9% in 2000, down from 7.0% in 1999.
  
  
• MAY COALITION
  The MAY Coalition provides low interest business loans for start-up and expansion.
  
  Each subsequent expansion that creates new jobs and/or investment constitutes a new tax incentive package and can run concurrently with the initial program.

Each subsequent expansion that creates new jobs and/or investment constitutes a new tax incentive package and can run concurrently with the initial program.

NOTE: Building and/or site preparation are not eligible for State Credits.

Mitchell County is currently classified as a Tier 2 County for the purposes of state incentives.