Raleigh Chamber and Wake County Economic Development Applaud
Today Gov. Pat McCrory signed House Bill 117, the North Carolina Competes Act, into law.
Highlights of the final bill for the Job Development Investment Grant (JDIG) include:
- An increase of JDIG funds from $15 million per year to $20 million per year
- An additional $15 million in incentives for high-yield projects (such as an automobile plant)
- Tax incentives for data centers, aviation jet fuel, and motor sports
- Continues the One North Carolina fund with additional requirements for Tier 3 counties
"The expansion of the JDIG program was a top priority for the Greater Raleigh Chamber of Commerce," Board Chair Ed Willingham said, "When the 2015/16 legislative session began in January, the Chamber began its efforts to expand our economic incentives options in order to maintain North Carolina's competitiveness as a top destination for business."
"After significant work by the conference committee, we're pleased that legislators put forth a compromised bill that benefits all of North Carolina," said Chamber President and CEO Tim Giuliani. "The Chamber thanks the Wake County legislative delegation, House and Senate leadership, Secretary Skvarla, and Gov. McCrory for their work on these provisions, as well as all of our members who were engaged in this issue."
Enacted in 2002 by the General Assembly as a catalyst for higher-wage job growth in North Carolina, JDIG is a self-funding, performance-based, net-positive program. It provides companies that locate or expand in North Carolina with a percentage of withholding taxes paid by the new employees created by the project.
As a result, no payment is made to a company until the actual jobs are created. Also, companies are required to meet their commitments for jobs, wages, and investments before any incentives are awarded. In situations where companies do not fully meet their job growth goals, the state is free of its commitment for continued incentive support. In short, JDIG ensures a positive return on investment for all of North Carolina's taxpayers every time.
"The replenishment of the state's JDIG fund moves North Carolina out of a place of uncertainty and into one of forward momentum," said Wake County Economic Development Executive Director Adrienne Cole. "The legislature's decision provides clarity on the state's incentive programs, providing Wake County, and the state, with the toolkit needed to attract jobs and capital investment."