INCENTIVES/TAXES

YES, WE'RE LAID BACK. BUT NOT WHEN IT COMES TO SUPPORTING OUR BUSINESS COMMUNITY

Don’t be fooled by the relaxed, carefree lifestyle. You won’t find a harder working team than the economic development officials representing the Lake Norman Region. And you won’t find a more business-friendly locale than North Carolina. Labor related costs in our right-to-work state are among the lowest in the nation. Tax rates are very attractive. And a variety of incentives are available to new and expanding companies, including free job training through our nationally renowned community college system.

Lake Norman Region Economic Development Incentive Grants — awarded by the Towns of Cornelius, Davidson and Huntersville based on a variety of criteria including size and type of project, job creation, growth potential, environmental impact and other considerations. Click here for Lake Norman Region incentive policy.

Mecklenburg County Business Investment Partnership — assists new and expanding companies with the creation of jobs and new capital investment in geographically targeted areas, a large portion of which also falls within the designated State Development Zone that adds additional incentives for job creation. Click here for more information. 
Click here for the Business Investment Partnership application form as an Excel spreadsheet. 
Or click here to download and/or print the Business Investment Partnershipt applicaiton form as a PDF file.

• Corporate Income Tax — flat rate of 6.9% of net income
• Sales & Use Tax — 4.5% statewide with a local rate of 2.5% or 3% on transactions (combined 7% tax not applicable to raw materials, containers, labels, packaging and shipping materials)
• Franchise Tax — $1.50 per $1,000
• Inventory Tax — none
• Property Tax — no state property tax; county rates range 4.2-11%; city rates range 2.4-8%
• Electricity — 2.83% on electricity to farms, manufacturers, commercial laundries and dry cleaners
• Natural Gas — 2.83%
• Telephone Service — 3% local; 6% intrastate; $50,000 cap applies for call center operations
• Unemployment Insurance Rate — 0.4% average tax rate; 1.2% new employers rate; 5.7% maximum rate (deficit employers); taxable base $15,900
• North Carolina Personal Income Tax Rates —
  • Federal Deductibility: No
  • Marginal Rates and Taxes:
  • 6% > $0
  • 7% > $12,750
  • 7.75% > $60,000
  • 8.25% > $120,000
  • Standard Deduction: $3,750 single; $6,100 joint
  • Exemptions: $1,050 single; $1,050 dependents

Visit the NC Department of Commerce website to learn which state funded incentive programs you may qualify for.

• One North Carolina Fund – Up to $1,000 per job for qualifying new and expanding companies
• Job Development Investment Grant (JDIG) – Discretionary program for high-impact transformational projects
• R&D Tax Credit — 5% on R&D expenses apportioned to North Carolina
• NC Port Users Tax Credit — for users of NC ports in Wilmington or Morehead City
• NC Industrial Revenue Bonds — up to $10 million per project, $40 million per company
• NC Infrastructure Assistance — provides funds for construction or improvement of business site access roads and extensions or renovations of existing rail spurs
• Article 3J Tax Credits - See NC Department of Commerce web link above for details.