New Incentive Policy Approved
Rowan County, the City of Salisbury and China Grove have adopted separate Investment Grant Program Policies. Through the Economic Development Commission, a new or expanding business can request a Grant. This standing policy is a valuable tool in the recruiting of new businesses to the community and retaining expanding businesses.
The Rowan County Board of Commission, Salisbury City Council and China Grove Council have supported economic development for more than twenty years with an emphasis on tax base development, employer diversification and job creation. The Commission and Council's recognize the need to provide programs and financial support to strengthen and diversify the economy. Tax base development is a key concern for Rowan County's fiscal health. It is essential, not only to attract new investment, but to encourage existing business to expand and reinvest in their Rowan County and Salisbury operations. The INVESTMENT GRANT PROGRAM is intended to provide an inducement for new businesses to locate in Rowan County, the City of Salisbury and China Grove, as well as encourage existing business to expand.
The grant is established by a contract with Rowan County, the City of Salisbury and/ or China Grove. Businesses locating within the City of Salisbury or China Grove may request two Grants, one from the County and one either municipality. The company will be required to pay their taxes in full each year based on the actual tax value of the property or investment. If the company meets all of the criteria in the contract, including a minimum capital outlay of $5 million, a portion of the property tax will be returned as a grant. The amount of the grant is based on a designated percentage level for five consecutive years.
The following criteria will determine each incentive package:
1. Total investment made by the company
2. Number of jobs created
3. Wages paid.
View a copy of the County Policy
View a copy of the City Policy
View a copy of China Grove's Policy
Rowan County has established a water/sewer extension policy for qualified industries that will cover the cost of water and sewer extension to the property of a new facility.
Duke Power Company promotes an economic development incentive rate.
The minimal criteria required to obtain this rate is based on a $500,000 capital investment per 1,000 KW load or 75 employees per 1,000 KW load.
The City of Salisbury will provide up to 50% of utility line extension cost within identified growth zones.
Piedmont Natural Gas Company has an Economic Development Rider available upon request.
A Community Development Block Grant limited to $1 million is the only grant available. Specific requirements must be met on hiring with administrative functions and be conducted by the firm for a two-year period.
Low Cost Financing
Rowan County is represented by all major banks which provide creative financing options for new and expanding industries.. Charlotte, located 40 miles (64 kilometers) to the South, is the second largest financing center in the United States.
The State of North Carolina provides all qualified companies with financial programs and advantages that will lower your costs of doing business, thus impacting your company's bottom line.
The Commerce Finance Center (CFC) provides a "one-stop" financial center to which relocating companies and existing employers come for the articulation of the financing alternatives available in North Carolina.
Incentives to qualifying businesses:
The Article 3J Credits
In July, 2006, the NC General Assembly passed legislation (House Bill 2170) that created a new tax credit program, Article 3J Credits. Article 3J provides three types of tax credits to eligible taxpayers that undertake qualifying activities in North Carolina: 1) Credit for Creating Jobs, 2) Credit for Investing in Business Property, and 3) Credit for Investment in Real Property (tier 1 only). These credits may be combined to offset up to 50% of the taxpayer's state income and franchise tax liability, and unused credits may be carried forward for up to five years (15-year carry-forwards apply to the Credit for Investing in Real Property and 20-year carry-forwards exist for taxpayers that invest at least $150 million over a two-year period).
Industrial Revenue Bonds
(IRBs) or Industrial Development Bonds may be used by companies engaged in some type of manufacturing for the acquisition of real estate, facility construction, and/or equipment purchase. IRBs fall under three issuance types: Tax Exempt, Taxable, and Pollution Control/Solid Waste Disposal Bonds. Regulations governing bond issuance are a combination of federal regulations and North Carolina statutes. The amount each state may issue annually is designated by population.
North Carolina Small Cities Community Development Block Grant Program: These grants may be obtained by local governments (municipal and county) to be used for projects involving a specific business that will create new jobs. With a participating bank, loans may be made to private businesses to fund items such as machinery and equipment, property acquistion, or construction. Assisted project activities must benefit persons (60% or more) who were previously (most recent 12 months) in a low or moderate family income status.
Industrial Development Fund: The Industrial Development Fund (IDF) assists municipal or county governments with financing for industries eligible through the William S. Lee Act in areas of the State designated as Tier I, II, and III areas. The amount funded depends on the number of new, full-time jobs created and may be used by local units of government for infrastructure improvement (in the form of grants) or for building renovation and equipment (in the form of loans). The fund may not be used for acquiring land or buildings or for constructing new facilities.
One North Carolina Fund: The One North Carolina Fund may provide financial assistance to those businesses or industries deemed by the Governor to be vital to a healthy and growing State economy and are making significant efforts to expand in North Carolina. The fund is a competitive fund and the location or expansion must be in competition with another location outside of North Carolina. Criteria for the program is available through the NC Department of Commerce Finance Center.
Job Development Investment Grant: This discretionary incentive may provide sustained annual grants to new and expanding business measured against a percentage of withholding taxes paid by new employees. The program is competitive and the Economic Investment Committee, which oversees it can award up to 15 grants in a calendar year. Contact the NC Department of Commerce Finance Center for the detailed criteria.
Industrial Access/Road Access Fund: administered by the Department of Transportation, this program provides funds for the construction of roads to provide access to new or expanded industrial facilities.
Rail Industrial Access Program: Provides grant funding to aid in financing the cost of constructing or rehabilitating railroad access tracks required by a new or expanded industry which will result in a significant number of new jobs or capital investment.
Corporate Income Tax / Franchise Tax Credits:
Investment Tax Credit
Job Creation Tax Credit
Worker Training Tax Credit
Research and Development Tax Credit
Business Property Tax Credit