Incentives & Tax Rates
Financial incentives at the state and local levels may be available to eligible tax-paying businessses locating or expanding in Moore County.
The State of North Carolina recognizes that incentives play a role in economic development and consequently offers performance-based 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. More information about these programs is also available in the 2019 North Carolina Incentives summary. Note that for 2019, Moore County has a Tier 3 designation. Moore County’s 2019 average annual wage standard is $39,129.
Job Development Investment Grant
The Job Development Investment Grant (JDIG) is a discretionary incentive program in which for a Tier 3 county like Moore, the annual grant amount awarded to a company is up to 75% of withholding taxes paid by “net” new full-time employees. Grant funds are disbursed annually for up to 12 years and can be used for any purpose. To qualify, a new or expanding company’s project must be competitive with locations outside of North Carolina. Additional criteria must be met including that the new jobs created must meet the county average wage requirement; the company must provide health insurance and pay at least 50% of the premiums for participating employees; and the company must maintain operations at the project location for at least 150% of the term of the grant. 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 can provide a grant worth up to 90% of personal income withholdings for up to 20 years. An exceptionally large project that creates 3,000 or more new full-time jobs and invests a minimum of $1 billion is categorized as a Transformative Project, which can provide a grant worth up to 90% of personal income withholdings for up to 30 years.
One North Carolina Fund
The One North Carolina Fund provides a one-time appropriation 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. Criteria must be met including that the new jobs created must meet the county average wage requirement, and the company must provide health insurance and pay at least 50% of the premiums for participating employees. The company must maintain at least 90% of the new jobs at the project location for a period of up to 2 years after the grant term expires. In Tier 3 counties, the local government is required to provide a dollar-for-dollar match to the grant funds. Grant funds are disbursed in 25% increments as new job creation targets are met.
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 an existing company (the project company) that has been operating in North Carolina for at least 12 months. The grant 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. For projects located in rural census tracts in Tier 3 counties (see map), 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 new full-time jobs that the project company commits to creating must meet Moore County’s wage standard and be created within 18 months of the grant award and then maintained for a minimum of 6 consecutive months. Clawback provisions are applicable if job creation requirements are not met.
North Carolina offers sales and use tax exemptions for manufacturing machinery and equipment; electricity, fuel and natural gas for manufacturing facilities; and raw materials for manufacturing. Inventories owned by manufacturers are exempt from state and local property taxes.
Workforce Training & Development
The State of North Carolina offers successful workforce development solutions to help employers meet their specific employment needs. An extensive network of economic, education and workforce development organizations, including the state’s Department of Commerce, community college system, and state universities, is available to help create customized training programs for new and existing employees. This assistance can range from initial employee recruitment and personalized applicant screening to pre-employment training and company-specific training. Specific programs include:
- North Carolina Community College Customized Training Program: Eligible companies that meet the required criteria can receive free, customized job training at the worksite or at another desired location 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. 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. In Moore County, the Customized Training Program is administered by Sandhills Community College.
- On-the-Job (OTJ) Training: OTJ offers financial incentives to employers for training new employees as they learn on the job. By working through the local workforce development board (for Moore County, the Regional Partnership Workforce Development Board), companies are compensated on a cost-reimbursement basis for up to 50% of an eligible new employee’s wages paid during on-the-job training for up to 6 months.
- NCWorks Incumbent Worker Training Grant: As a means to help improve employees’ skills and the company’s productivity and competitiveness, the Incumbent Worker Grant reimburses employers for the costs to train their employees. 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. The grant covers the cost of eligible training-related expenses including instructional costs, online training, textbooks & manuals, and computer software.
>> More information about incentive programs offered by the state of North Carolina is available here.
For projects investing less than $3 million:
Year 1 = 80%
Year 2 = 70%
Year 3 = 60%
Year 4 = 50%
Year 5 = 40%
For projects investing $3 million or greater:
Year 1 = 90%
Year 2 = 80%
Year 3 = 70%
Year 4 = 60%
Year 5 = 50%
Year 6 = 40%
Year 7 = 30%
The following municipalities have also approved respective guidelines for new and expanding businesses. To view these guidelines:
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.
Economic Development Rider ED-9 is available for new and expanding industries that have a minimum load of 1,000 KW at one delivery point, and the company must meet at least one of the following criteria:
— Employ a minimum of at least 75 new, full-time equivalent employees. These new employees would have to be hired after Duke approves the project company for service under this Rider, OR
— Make a capital investment of at least $400,000 and have a net increase in full-time equivalent employees. The capital investment would have to occur after the project company is approved for service under this Rider.
ED-9 offers a credit applied to the company’s total bill for new load over a 4-year period.
Economic Redevelopment Rider ERD-5 is available for new industries locating in vacant existing buildings served by Duke Energy and that have a minimum load of 500 KW at one delivery point. ER offers a monthly billing credit of 50% on electricity used during the first year of operation, and the project company must meet at least one of the following criteria:
— Employ a minimum of at least 35 new, full-time equivalent employees. These new employees would have to be hired after Duke approves the project company for service under this Ride, OR
— Make a capital investment of at least $200,000 and have a net increase in full-time equivalent employees. The capital investment would have to occur after the project company is approved for service under this Rider.
Moore County has the 8th lowest property tax rate among the 100 counties in North Carolina to help keep operating costs low.
Moore County’s tax rate is $.51 per $100 valuation applicable for both real estate and personal property. A $.04 amount is added to this rate for county-wide Advanced Life Support (ALS) services.
For properties located in an unincorporated area of Moore County or in the extraterritorial jurisdiction (ETJ) of a municipality, an additional $.095 is applied for the local fire districts.
North Carolina’s sales tax rate is 4.75%. Moore County’s sales tax rate is 2.00%, for a total combined state and local tax rate of. Effective April 1, 2019, Moore County’s sales tax rate will increase to 2.25% for the purpose of generating revenue to support education and the construction of new schools in Moore County.
North Carolina’s 2019 corporate income tax rate is 2018 State Business Tax Climate Index reveals that North Carolina is ranked 3rd in the corporate income tax index which is the best ranking for any state that imposes a corporate tax.. Of the 44 states that levy a corporate income tax, North Carolina has the lowest rate. The Tax Foundation’s
|Town of Aberdeen||$.49|
|Town of Cameron||$.575|
|Town of Carthage||$.505|
|Town of Pinebluff||$.39|
|Village of Pinehurst||$.30|
|Town of Robbins||$.75|
|Town of Southern Pines||$.40|
|Town of Taylortown||$.50|
|Town of Vass||$.515|
|Village of Whispering Pines||$.37|
Source: Moore County Tax Rates Chart
Let Partners in Progress help you navigate through the incentive opportunities that may be applicable to your company.