Grants & Incentives
- OVERVIEW
In order to expand economic development opportunities for Caldwell County, diversify the tax base, offer improved employment opportunities for its citizens and promote economic growth and welfare of the business community, the Caldwell County Commissioners and the governing bodies of the seven municipalities within the county have established relocation incentive guidelines to encourage new industry to locate in the county and to assist with existing industry expansion. The Economic Development Incentive Program (EDI Program) formalizes guidelines that establish parameters by which both new and expanding industry interested in relocating a corporation to NC can be assisted in their efforts to grow and thrive. Funding to relocate a business to NC includes:
• Economic development grants in North Carolina
• Industrial relocation grants in NC
• North Carolina state incentive programs, including industrial and commercial relocation incentives
- PROGRAM PARAMETERS
The EDI Program represents a collaboration between county and municipal governments to provide incentives to encourage existing and new industrial and commercial expansion. The EDI Program involves a contractual agreement between the county and a new or existing business/industry (and appropriate city/town if the project is within a municipality's boundaries or subject to annexation within the timeframe of the agreement) that would allow for a financial incentive based upon actual value, schedule and payment of local property taxes for a period of up to five years. The county and appropriate city/town will require the business/industry to "pay in full" annually total property taxes due. If the business/industry has met specific criteria as outlined in a formal agreement, a portion of the property taxes paid by that business/industry to the county (and municipalities, if applicable) would be returned to the business/industry in the form of a local economic development incentive.
Incentives will also be considered for the creation of new jobs within Caldwell County. These incentives will be based on the number of jobs created and the average wage of these jobs. Each project will be considered on a case-by-case basis using the guidelines established by the Caldwell County Commissioners. The guidelines for the program shall be subject to periodic review.
Further information regarding the EDI Program may be obtained by contacting us.
- STATE AND FEDERAL INCENTIVE PROGRAMS
ARTICLE 3J CREDITS: Article 3J provides two types of tax credits to eligible taxpayers that undertakes qualifying activities in North Carolina.
- Credit for Creating Jobs: Eligible taxpayers that meet a minimum threshold of new full-time jobs created during the taxable year may claim a credit for each new job created. The credit is taken in equal installments over four years following the year the jobs are created. The job threshold and the credit amount per job are determined by the tier designation of the county in which the jobs area created. Currently for Caldwell County, currently a tier one county has no wage threshold to qualify for the tax credits. Each new job created by a qualified taxpayer may qualify for tax credits equaling $12,500,00 per new job created.
- Credit for Investing in Business Property: Eligible taxpayers may claim a credit based on a percentage of the cost of capitalized tangible personal property that is placed in service during the taxable year. This credit is taken in equal installments over four years, beginning the year after the property is first placed in service. There is a zero threshold for new equipment placed in service in Caldwell County (incentive is available for the first dollar of new equipment placed in service) and the credit percentage is 7%
ONE NC FUND: Provides funds for the purchase of equipment, structural repairs, improvements or renovations of existing buildings, for expansion and construction of or improvements to new or existing water, sewer, gas or electric utility distribution lines, or equipment for existing buildings. Moneys may also be used for construction of or improvements to new or existing water, sewer, gas or electric utility distribution lines, or equipment to serve new or proposed industrial buildings used for manufacturing and industrial operations. Funding is provided at the discretion of the Governor, usually provided on an amount for each full-time job created, which is determined by the NC Department of Commerce and the Governor. Factors considered include economic impact, strategic importance to the state, region or locality, quality of jobs, quality of industry and project and environmental impact.
COMMUNITY DEVELOPMENT BLOCK GRANTS: Provides funding for infrastructure such as water, sewer and roads for businesses committed to a site. In Caldwell County, CDBG provides $10,000 per each full-time job created by businesses that qualify for the Article 3J Credits. The cap is $1,000,000 and requires a 25% local match (this may be waived under certain circumstances). In addition, the business must agree that 50% of new hires or jobs retained by the project be from workers previously employed at low to moderate-income levels.c
ECONOMIC DEVELOPMENT ADMINISTRATION: Provides up to 50% funding for water, sewer and road infrastructure for businesses.
NC RURAL ECONOMIC DEVELOPMENT CENTER: Provides funding for various projects in 85 rural counties in North Carolina. These include grants for reuse of existing vacant buildings, venture funding for small business and assistance with funding for various infrastructure projects.
GOLDEN LEAF FOUNDATION FUND: Provides funding for initiatives that results in job creation and retention in tobacco-dependent or economically distressed counties. A non-profit 501c03 organization must make application and funding is decided by the Foundation’s staff and Board of Directors.
COMMUNITY COLLEGE INDUSTRIAL TRAINING PROGRAMS: Various training programs are made available through our statewide network of community colleges. These programs can be adapted to meet the training needs any new or expanding business that has created at least 12 new jobs. Assistance for industries in Caldwell County is available from Caldwell Community College and Technical Institute.
ADDITIONAL SOURCES FOR GRANTS AND ASSISTANCE: Industrial Revenue Bonds, Department of Transportation Rail Industrial Access Program, Department of Transportation Site Access Fund Incumbent Workforce Development Grant and On-The Job Training (OJT)
If you have questions about any of the programs, local state or federal, please contact us. - Credit for Creating Jobs: Eligible taxpayers that meet a minimum threshold of new full-time jobs created during the taxable year may claim a credit for each new job created. The credit is taken in equal installments over four years following the year the jobs are created. The job threshold and the credit amount per job are determined by the tier designation of the county in which the jobs area created. Currently for Caldwell County, currently a tier one county has no wage threshold to qualify for the tax credits. Each new job created by a qualified taxpayer may qualify for tax credits equaling $12,500,00 per new job created.
Our historic downtown is the heart of our All-American City. From the hardware store on the corner to the cafes and bistros on Main Street, our downtown offers unique shopping and investment opportunities. I am glad to live in a community with a rich heritage of art and music and a sense of caring and compassion for people of all ages.
Kaye Reynolds
City of Lenoir
City of Lenoir