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. Note that for 2019, Moore County has a Tier 3 designation. Moore County’s 2019 average annual wage standard is $39,129.
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, and the company must provide health insurance and pay at least 50% of the premiums for participating employees. 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. The JDIG program is available through January 1, 2021.
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 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 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. For 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 wage requirements 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.
Through the 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. Although the amount varies depending on specific job skills and competencies, the funding that may be offered typically ranges from $900 to $1,200 per eligible employee.
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.
>> 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 $.465 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, but even at $.505, Moore County has the lowest property tax rate when compared to the 9 surrounding counties.
For properties located in an unincorporated area of Moore County or in the extraterritorial jurisdiction (ETJ) of a municipality, an additional $.095 is applied for the local fire districts.
North Carolina’s sales tax rate is 4.75%. Moore County’s sales tax rate is 2.00%, for a total combined state and local tax rate of. Effective April 1, 2019, Moore County’s sales tax rate will increase to 2.25% for the purpose of generating revenue to support education and the construction of new schools in Moore County.
North Carolina’s current corporate income tax rate is 2018 State Business Tax Climate Index reveals that North Carolina is ranked 3rd in the corporate income tax index which is the best ranking for any state that imposes a corporate tax. In 2019, the rate decreases to 2.5%.. Of the 44 states that levy a corporate income tax, North Carolina has the lowest rate. The Tax Foundation’s
|Town of Aberdeen||$.47|
|Town of Cameron||$.575|
|Town of Carthage||$.495|
|Town of Pinebluff||$.39|
|Village of Pinehurst||$.295|
|Town of Robbins||$.64|
|Town of Southern Pines||$.40|
|Town of Taylortown||$.40|
|Town of Vass||$.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.