Incentive/Grants/Financing
Iredell County and the Town of Mooresville have a adopted separate, but identical Investment Grant Program Policies. Through the MSIEDC, a new or expanding business can request a grant. This standing policy is a valuable tool in the recruiting of new business to the community and retaining expanding businesses. Iredell County Board of Commission and Town of Mooresville Board of Commission have supported economic development for the emphasis on tax base development, employer diversification and job creation. It is essential, not only to attract new investment, but to encourage existing business to expand and reinvent in their operations.
The program provides a five-year grant to companies investing in Iredell County. The grant is established by a contract with Iredell County and/or the Town of Mooresville. Business locating within both may request two Grants, one from the County and one from the Town. If the Company meets all of the criteria in the contract, including a minimum capital investment, a portion of the property tax will be returned as a grant.
The following criteria will determine each incentive package:
1. Total investment made by the company
2. Number of jobs created
3. Wages paid
Industrial Development Incentive Program (IDIP) – Iredell County
Infrastructure
Any company that resides in the Town of Mooresville, consumes water through the Town and over 100,000,000 gallons of water in a fiscal calendar year, July 1-June 30, is eligible to receive a three percent rebate after meeting the threshold.
Infrastructure Financing
SAD (Special Assessment District) Financing is a financing vehicle that can be used to fund project infrastructure. SAD can be formed by a County, City or Town after receiving a petition from at least 66% of the property owners within the proposed SAD. The SAD can issue tax exempt revenue bonds secured by assessments levied against benefiting property within the SAD.
Power/Cable/Phone/Wireless
Duke Power Company promotes an economic development incentive rate
Energy United promotes an economic development incentive rate
MI Connections economic development rates
Low Cost Financing
Iredell County represents all major banks which provide creative financing options for new and expanding industries and 30 miles north of 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 cost impacting the company’s bottom line.
The Commerce Finance Center (CFC) provides a “one-stop” financial center with financing alternatives available in North Carolina.
Incentives to Qualifying Businesses
July, 2006, the NC General Assembly passed legislation (House Bill 2170) that created a new tax credit program, Article 3J Credit. 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).
(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 government (municipal and county) to be used for projects involving a specific business that will create new jobs. With participating bank, loans may be made to private businesses to fund items such as machinery and equipment, property acquisition, 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.
The One North Carolina Fundy 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 funds is a competitive fund and the location or expansion must be in competition with another location outside of North Carolina. Criteria for the program are 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 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
The 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 expanding industry which will result in significant number of new jobs or capital investment. This funding helps ensure that companies have the railroad tracks needed to transport freight and materials. Funding for project is contingent upon application approval prior to the industry making decision to locate or expand their facility in North Carolina
Companies that utilize the NC ports in Wilmington or Morehead City can become eligible for significant tax credits.
Duke Energy Smart Saver Incentive- North Carolina
With Duke Energy's Smart $aver Incentive program, businesses can receive cash for installing high-efficiency lighting, HVAC, pumps and other qualifying equipment. The use of energy efficient equipment enables your business to improve its bottom line by reducing energy consumption. And Smart $aver incentives help lower the costs associated with upgrades.
By taking advantage of the Smart $aver program you can:
- Help buy down the incremental cost difference between standard and energy efficient equipment.
- Invest in high-efficiency equipment without exceeding annual budgets.
- Contribute to a greener environment by reducing the amount of natural resources needed to keep your business running.
- Defer the need to construct additional electric-generating facilities, thereby keeping regional energy rates low and reducing emissions.
