Incentives / Financial Assistance
Financial incentives at the state and local levels are available to eligible tax-paying businesses locating or expanding in Moore County.
The State of North Carolina recognizes that lessening the tax burden can significantly lower the overall costs of doing business, and consequently offers performance-based tax credits, discretionary programs and other cost-saving programs to companies meeting eligibility requirements. There are several financial incentive programs available to eligible new and expanding businesses in North Carolina. For 2017, Moore County has a Tier 3 designation. The 2017 average annual county wage for Moore is $37,130.
Job Development Investment Grant
The Job Development Investment Grant (JDIG) is a discretionary incentive recently revised through House Bill 117 – NC Competes Act, effective July 1, 2015. The maximum amount of grants awarded to companies in a single calendar year is $20 million per year. The specific annual grant amount that can be awarded to a company is up to 75% of withholding taxes paid by “net” new full-time employees. For Tier 3 counties like Moore County, 75% of the total grant amount is paid to the company, and the remaining 25% is payable to a Utility Account. The grant term is 12 years starting with the first year a grant payment is made.
To qualify for a grant, a new or expanding company’s project must be competitive with locations outside of North Carolina and must met a specific set of criteria which are reviewed by an Economic Investment Committee. Target parameters for projects in Tier 3 counties include the creation of 200 new jobs at an average wage of 115% of the county’s or state’s average wage, whichever is lower, and a capital investment of a minimum of $10,000 per job. In addition, the grant funds must be necessary in order to complete the project.
The company must also agree to maintain operations at the project site, or another approved site, for at least 150% of the term of the grant. If the business fails to remain at the site for the required term, a claw-back provision can recapture all or part of the grant funds.
In a Tier 3 county, the local government must have participated in the recruitment of the company and offered local incentives.
High-Yield Project (HYP)
A project creating 1,750 or more new full-time jobs and investing at least $500 million in private funds is categorized as a High-Yield Project (HYP), and some provisions of the JDIG grant are different for HYPs. If the HYP company has been compliant with all of the grant provisions during 3 consecutive years, the company may then be eligible for up to 100% of the withholding taxes for eligible positions for each subsequent consecutive year that the company maintains the minimum job creation requirement and is compliant with the grant’s provisions. All the grant funds are payable to the company, and none are paid to the Utility Account. The term of the grant may be up to 20 years.
The JDIG program is available through January 1, 2019.
>> For additional requirements and information about the Job Development Investment Grant, click here.
One North Carolina Fund
The One North Carolina Fund provides a one-time appropriation distributed by the General Assembly for new and expanding projects that are of significant economic importance to the state and that are in danger of possibly locating or expanding outside of North Carolina.
Companies can use these funds to purchase and install equipment, to renovate and repair an existing building for expansion, and to construct or improve infrastructure, such as water and sewer systems and access to natural gas.
Requirements for the One NC Fund include:
–> The project must be competitive with another state or country.
–> In a Tier 3 county like Moore County, the company must create at least 40 new jobs paying an average annual wage of at least 110% of Moore County’s average annual wage.
–> The company must offer health insurance for all full-time positions and not have any environmental, OSHA or overdue tax issues.
–> A local government (municipality and/or county) must match the grant amount.
The amount of the appropriation is determined by the company’s economic impact to the area, and the number and quality of the jobs created, among other factors. Generally, the grant amount for a project in a Tier 3 county is approximately $1,000 per new job created. The company must be in operation and grant funds will be disbursed in 25% increments as jobs are created and local government matching funds are released.
North Carolina statute requires that the company maintain at least 90% of the new jobs in operation at the project location, or at another approved site in North Carolina, for a period of up to two years after the grant end date.
>> For additional requirements and information about the One NC Fund, click here.
Building Reuse & Restoration Grant
Administered through the NC Department of Commerce’s Rural Development Division, the Building Reuse & Restoration Grant provides funding to offset the cost of repairing, renovating and/or expanding an existing building that is either vacant or is currently occupied by the project company. Funds are passed through the local government to the building owner as a reimbursement for eligible project costs. The local government is required to contribute in cash at least 5% of the grant amount awarded.
Project Eligibility Criteria:
1) For Tier 3 counties like Moore, the project building must be located in a rural census tract. Buildings located in the following census tracts in Moore County are NOT eligible: 9506.01, 9507.01, 9508.01, and 9509.
2) For vacant buildings, the building must empty for at least 3 months prior to applying for the grant. For occupied buildings, the project company must have been operating in North Carolina for at least 12 months.
3) The project company must be an eligible business type, which includes manufacturing and warehousing, based on the company’s NAICS code.
For Tier 3 counties, up to $5,000 per new full-time job created can be awarded. Grant funds are capped based on whichever amount is lower: 1) a maximum of $250,000; 2) one-half of the cost of eligible project expenses; or 3) the number of new full-time jobs created multiplied by $5,000 per job.
The project company must commit to creating new full-time jobs that meet or exceed the average County weekly wage. The jobs must be created within 24 months of the grant award date and must be maintained for a minimum of 6 consecutive months. If job creation goals are not met, a claw-back provision takes effect and a prorated portion or all of the grants funds will have to be paid back.
The project construction must begin within 6 months of the grant award date and be completed within 18 months.
>> For additional requirements and information about the Building Reuse & Restoration Grant, click here to access the North Carolina Department of Commerce’s website.
Sales & Use Tax Exemptions for Manufacturing
North Carolina offers sales and use tax exemptions for manufacturing machinery and equipment; electricity, fuel and natural gas for manufacturing facilities; raw materials for manufacturing; and inventories. Click here for more information.
Workforce Training and Development
North Carolina has a network of economic, education and workforce development organizations, including the state’s Department of Commerce, community colleges and universities, that assist new and expanding companies with creating customized training plans for initial employee recruitment, personalized screening, pre-employment training, and client-specific training.
NCWorks Career Centers provide companies with free assistance in identifying, recruiting, and screening job applicants. NCWorks Career Center in Moore County:
245 Shepherd Trail
Aberdeen, NC 28315
Pamela Alsobrook, Director
Through the North Carolina Community College Customized Training Program, eligible companies can receive free and customized job training for any full-time production, technology support, or direct customer service positions created in North Carolina. Services provided include training assessment, coursework design, training delivery, and related instructional costs. The Customized Training Program is designed to support three key aspects of a company’s well-being: job growth, technology investment, and productivity enhancement.
Companies eligible for this program include manufacturers, technology-intensive operations, regional or national warehousing and distribution centers, customer support centers, air courier services or national headquarters with operations outside North Carolina.
To receive assistance, eligible companies must meet two or more of the following conditions:
- Create new jobs, expand an existing workforce, or enhance the productivity and profitability of its operations within the state;
- Make an appreciable capital investment;
- Deploy new technology, or
- Enhance the skills of workers.
In Moore County, the Customized Training Program is administered by Sandhills Community College. >> For more information about the Customized Training Program, contact:
Sandhills Community College – Business & Industry Services
Ronnie Patton, Director
NCWorks Incumbent Worker Training Grant
The Incumbent Worker Training Grant reimburses companies for the cost of training their workers, helping to improve the skills of employees and the company’s competitiveness. Employers can receive up $10,000 per grant and up to a total of $60,000 from this program over the course of the company’s lifetime.
These grants cover training-related expenses including instructional costs, textbooks and manuals, computer software, and instructor travel.
>> For more information on the Incumbent Worker Training Grant, click here.
Work Opportunity Tax Credit
The Work Opportunity Tax Credit enables businesses to receive a one-time tax credit of $2,400 to $9,600 for hiring individuals who face barriers to becoming employed, such as dislocated workers, disabled veterans, and vocational rehabilitation recipients. The amount of the credit varies, depending on the type of individual hired.
Moore County has economic development incentive guidelines to assist in the recruitment of new businesses and the expansion of existing industries within the County. To be eligible for the incentive, the company must meet specific criteria that will be detailed in a Performance Agreement to be executed by the County and the company. Levels of new job creation, average wages paid, and employee benefits are among the basic criteria. Clawback provisions take effect if performance requirements are not met. Moore County retains discretionary authority to evaluate projects on a case-by-case basis and to accordingly amend the criteria if applicable.
>> To view Moore County’s Economic Development Incentive Grant Guidelines, click here.
The following municipalities have also approved respective guidelines for new and expanding businesses. To view these guidelines:
- Village of Pinehurst: click here
- Town of Southern Pines: click here
- Town of Aberdeen: click here
- Town of Carthage: click here
- Town of Robbins: click here
Incentive assistance from other municipalities within Moore County is discretionary based on a project-by-project evaluation and is dependent upon the number of new jobs created, the average wage paid, and the amount of capital investment, among other criteria.