Halifax County, North Carolina is pro-business and our community leaders are committed to providing an environment to enhance business growth and prosperity. Companies looking to locate or expand in Halifax County will find a number of resources to support job creation and investment.

Halifax County is designated as a Tier One Area by the North Carolina Department of Commerce. This designation provides for MAXIMUM incentives to qualifying new and expanding industries under the Article 3J Tax Credits Program.

 STATE INCENTIVES 

Corporate Income Tax
The North Carolina corporate income tax rate is 6.9%.

Credit for Creating Jobs

Eligible taxpayers that meet the minimum threshold for new full-time jobs created during the taxable year may claim a credit of $12,500 for each new job created. The credit is taken in equal installments over four years following the year the jobs are created. If the taxpayer creates new jobs in an Urban Progress Zone, the credit is increased by $1,000. Additionally, if a job located in the Roanoke Rapids Urban Progress Zone is filled by a resident of that zone or long-term unemployed worker, an additional $2,000 per job credit is allowed.

Credit for Investing in Business Property

Eligible taxpayers can claim a credit equal to 7% of the cost of capitalized tangible personal property placed in service during the taxable year. This credit is taken in equal installments over four years, beginning in the year after the property is first placed in service. There is no minimum threshold for investment.

Credit for Investment in Real Property

Eligible taxpayers that invest at least $10 million in real property within a three-year period and create at least 200 new jobs within two years at an establishment located in Halifax County are allowed a credit equal to 30% of the eligible real property investment. This credit is taken in equal installments over seven years, beginning the year after the property is used in an eligible business. To qualify for this credit, the taxpayer must obtain a written determination from the Department of Commerce.

Eligible Industry Sectors

To qualify for Article 3J Credits, a company’s primary activity must fall under the following eligible types of business: Aircraft maintenance and repair; air courier services hub; company headquarters that creates at least 75 new headquarters jobs; customer service call centers; electronic shopping and mail order houses; information technology and services; manufacturing; motorsports facility; motorsports racing team; research and development; warehousing; and wholesale trade.

Qualified North Carolina Research Expenses

A taxpayer that has qualified North Carolina research expenses for the taxable year is allowed a credit equal to a percentage of the expenses as summarized below.

(1) Small business. – If the taxpayer was a small business as of the last day of the taxable year, the applicable percentage is three percent (3%).

(2) Low-tier research. – For expenses with respect to research performed in an enterprise tier one, two, or three development tier one area, the applicable percentage is three percent (3%).

(3) Other research. – For expenses not covered under (1) or (2) above, the percentages provided in the table below apply to the taxpayer's qualified North Carolina research expenses during the taxable year at the following levels:

Expenses　　　　　　　　　　　　　　　　　　　　　　　　　 Up To Rate
$0 to $50 million　　　　　　　　　　　　　　　　　　　　　　 1%
$50 million to $200 million　　　　　　　　　　                          2%
$200 million　　　　　　　　　　　　　　　　　　　　　　　　 3%

NOTE: Only one credit is allowed under this subsection with respect to the same expenses. If more than one subdivision applies to the same expenses, then the credit is equal to the higher percentage, not both percentages combined. If part of the taxpayer's qualified North Carolina research expenses qualifies under subdivision (2) of this subsection and the remainder qualifies under subdivision (3) of this subsection, the applicable percentages apply separately to each part of the expenses.

One North Carolina Fund
The One North Carolina Fund is a discretionary program that helps recruit and expand quality jobs in high value-added, knowledge-driven industries.  It also provides financial assistance to those businesses or industries deemed vital to a healthy economy that are making significant efforts to expand in North Carolina. The fund currently consists of nonrecurring appropriations made by the North Carolina General Assembly for companies contemplating new expansion or new operations in the state. The fund is designed to increase the state’s competitiveness so the project location or expansion must be in competition with another location outside the state.

Companies can receive money for: 1) Installation or purchase of equipment; 2) Structural repairs, improvements, or renovations of existing buildings to be used for expansion; 3) Construction of or improvements to new or existing water, sewer, gas or electric utility distribution lines, or equipment for existing buildings.

To be considered for the One North Carolina Fund, the company must agree to meet an average wage test. For companies considering Halifax County, the County must agree to match financial assistance to the company.

 
Job Development Investment Grant Program (JDIG)
JDIG is a discretionary incentive that provides annual grants to new and expanding businesses relative to the percentage of withholding taxes (from 10% to 75%) paid for the company’s new employees. These grants can result in payments to a business for up to 12 years. To qualify, a project must meet specific criteria, which includes the following:

• Net increase in employment
• Project will increase opportunities for employment and strengthening the states’ economy
• Project is consistent with economic development goals of the state and the local community
• Project is competitive with another state(s) or country
• The JDIG grant is necessary for completion of the project in the state
• Project meets health insurance and workplace safety requirements
• Other criteria

Application Fee - A fee of $500 is due and payable to the NC Department of Revenue for each type of credit the taxpayer claims or intends to claim with respect to a business establishment.

LOCAL INCENTIVES

Halifax County offers an Economic Development Incentive Grant Program designed to provide an inducement for qualifying new businesses to locate in Halifax County and encourage qualifying existing businesses to expand. The program provides a grant to companies investing in Halifax County. The amount of the grant, which is paid over five years) will be established by a contract with Halifax County. The amount of the grant is determined on a case-by-case basis in consideration of new jobs and taxable investment to be created by the business.　

Halifax County Business & Industry Retention Grant - Halifax County may provide a grant or loan to retain business and industry under certain conditions. The intent of this grant/loan program is to retain significant tax base and employment and benefit Halifax County employees and citizens by increasing worker education, worker and company productivity, and long-term industry competitiveness on a global basis. The grant may not be used to protect companies from local business competition.

For additional information regarding these programs, contact Cathy A. Scott, Executive Director, Halifax County Economic Development Commission at 1-800-775-2513 or e-mail us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it