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Economic IncentiveDeals in NC andEastern NorthCarolina
Data from 2007 – 2013 unless otherwise noted.
The Eastern Plains Region• An 18-county region defined by the Kenan Institute as Beaufort,
Bertie, Duplin, Edgecombe, Gates, Greene, Halifax, Hertford, Jones, Lenoir, Martin, Nash, Northampton, Pitt, Warren, Washington, Wayne, and Wilson. The largest metro area in this region is Greenville in Pitt County, home to over 87,000 people. This region is characterized by high unemployment rates, persistent poverty, and low population growth.
Eastern Regional PartnershipsEastern NC is comprised of three economic development regional partnerships encompassing 40 counties, including:• Northeast: Beaufort, Bertie, Camden, Chowan, Currituck, Dare, Gates,
Halifax, Hertford, Martin, Northampton, Pasquotank, Perquimans, Tyrrell, Washington
• Eastern: Carteret, Craven, Duplin, Edgecombe, Greene, Jones, Lenoir, Nash, Onslow, Pamlico, Pitt, Wayne, Wilson
• Southeast: Bladen, Brunswick, Columbus, Cumberland, Hoke, New Hanover, Pender, Richmond, Robeson, Sampson, Scotland
North Carolina Incentives• Statutory Incentives: Statutory incentives are tax breaks guaranteed by law to companies
that meet certain requirements. This work does not look at statutory incentives.• Discretionary Incentives: Discretionary incentives are economic development incentives
that are offered on a firm-by-firm basis to individual companies. The company is required to meet the requirements defined in an inducement agreement. This report analyses discretionary incentives.
• OneNC Fund: The OneNC fund provides matching grants to local governments seeking to recruit or retain a company. Unless paired with a JDIG, OneNC grants are usually disbursed in four equal installments. There are strict accountability rules for new job creation.
• Jobs Development Investment Grant Program (JDIG): The JDIG Program provides cash incentives directly to companies based on a percentage of withholding taxes paid by employees. Up to 25 companies in the state can receive JDIG grants per year, with grants lasting up to 12 years. With this grant program, there are strict accountability rules based on job creation.
• Job Maintenance and Capital Development Fund (JMAC): Provides a limited number of grants to assist businesses modernizing their manufacturing processes in Tier 1 counties. Grants are awarded to a business if it has at least (i) 2,000 employees, and invests at least $200 million in capital improvements, or (ii) 320 employees, and invests at least $65 million in capital improvements to convert existing manufacturing process and change the product it manufactures.
Data Sources on Incentives(1) 1996- 2008Source: UNC-C3E Incentive Media Study, 2009 • NC Incentive Database: 391
Incentive Deals• Deals Gleaned from
Newspapers• Eastern Incentive Database:
143 deals, 37%
(2) 2007 -2013Source: North Carolina Department of Commerce• NC Incentive Database: 465
Incentive Deals• Eastern Incentives: 103 deals,
22%
Unless otherwise noted, all graphs and charts use the North Carolina Department of Commerce dataset and includes the years 2007 through 2013.
Statewide Incentive Distribution, 2007-2013(One NC, JDIG, and JMAC)
West15%
Charlotte28%
Piedmont Triad19%
Research Triangle14%
Southeast8%
East8%
Northeast6%
Multiple regions1%
Eastern North Carolina• 103 Deals; 22% of total• 35 deals for Southeast,
39 deals for Eastern, and 29 deals for Northeast
465 Total Incentives
Incentive Awards by Economic Tier
Tier 132%
Tier 228%
Tier 339%
Multiple1%
For all of North Carolina…
Tier 162%
Tier 231%
Tier 37%
For Eastern North Carolina…(Eastern, Southeast, and Northeast partnerships)
Firm Retention v. Firm Recruitment
For North Carolina…
Re-cruit-ment55%
Retention / Expansion
45%
For Eastern North Carolina…
Re-cruit-ment58%
Reten-tion/
Expansion42%
Above data is from the 2009 media study covering 1996 - 2008.
Incentivized Industries
0
10
20
30
40
50
60
North Carolina
Eastern North Carolina
# of
Ince
ntive
s (J
DIG
, One
NC,
& JM
AC)
Top 5 Eastern North Carolina Incentivized Industries:1) Transportation equipment
manufacturing2) Plastics and Rubber Products
Manufacturing3) Food, Beverage, and Tobacco
Product manufacturing 4) Fabricated Metal Product
Manufacturing 5) Wood Product Manufacturing
Number of Incentives Over Time(JDIG, One NC, and JMAC combined)
2007 2008 2009 2010 2011 2012 20130
10
20
30
40
50
60
70
80
90
100
NC Eastern NC
Tota
l # o
f Inc
entiv
es
Total Value of Incentives Over Time(JDIG, One NC, and JMAC combined)
2007 2008 2009 2010 2011 2012 2013$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$120,557,500
$197,823,975
$128,445,090$122,386,350
$115,977,514
$160,533,304 $162,348,100
$9,882,500
$126,166,000
$3,558,000$9,084,850
$4,704,400$13,609,000
$4,724,000
NC Eastern NC
Tota
l Val
ue
* In 2008, several large incentives were awarded to companies in Eastern North Carolina including a $34 million JDIG award to GE-Hitachi Nuclear Energy Americas LLC in New Hanover County; a $20 million JDIG award to Spirit AeroSystems North Carolina, Inc. in Lenoir County; and a $30 million JMAC award to Bridgestone Firestone North American Tire, LLC in Wilson County.
*
Average Value of Incentives Over Time(JDIG, One NC, and JMAC combined)
2007 2008 2009 2010 2011 2012 2013$0.00
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$6,000,000.00
$7,000,000.00
$8,000,000.00
$9,000,000.00
$1,913,611.11
$4,209,020.74
$2,293,662.32
$1,406,739.66 $1,317,926.30
$1,911,110.76
$4,058,702.50
$380,096.15
$7,885,375.00
$355,800.00$648,917.86
$336,028.57
$972,071.43
$524,888.89
NC Eastern NC
Aver
age
Valu
e
*
* In 2008, several large incentives were awarded to companies in Eastern North Carolina including a $34 million JDIG award to GE-Hitachi Nuclear Energy Americas LLC in New Hanover County; a $20 million JDIG award to Spirit AeroSystems North Carolina, Inc. in Lenoir County; and a $30 million JMAC award to Bridgestone Firestone North American Tire, LLC in Wilson County.
Source of State Funding
JMAC1% Combined JDIG/One
NC8%
JDIG20%
One NC72%
All North Carolina
JMAC3%
Combined JDIG/One NC5%
JDIG9%
One NC83%
Eastern North Carolina
Incentive North Carolina Eastern North CarolinaJMAC 3 3
Combined JDIG/One NC 33 5JDIG 86* 9
One NC 309 82
*One less incentive than reported since one company received two JDIG grants for what appears to be the same project
Total Projected Number of Jobs Created
2007 2008 2009 2010 2011 2012 20130
2000
4000
6000
8000
10000
12000
14000
5445 5455 4660 5173 43986330
4653
3888 4709 5033
8132
5766
6703
3964
For all of North Carolina
JDIG New One NC New
Tota
l # o
f Job
s
*Does not include JMAC
2007 2008 2009 2010 2011 2012 20130
500
1000
1500
2000
2500
3000
3500
4000
4500
952
2044
243 540104 315 558
1555
1796
633
2174
1251 1012 543
For Eastern North Carolina
JDIG New One NC New
Tota
l # o
f Job
s
Total Projected Number of Jobs Retained
2007 2008 2009 2010 2011 2012 20130
5000
10000
15000
20000
25000
30000
43797436 6562 6744 6728 9172
3577
13278 7580 811912726 11158
15611
3346
For all of North Carolina
JDIG Retained One NC Retained
Tota
l # o
f Job
s
2007 2008 2009 2010 2011 2012 20130
500
1000
1500
2000
2500
3000
3500
4000
4500
344
1843
203 279 238 0716
1543
2414
650
3329
1882
3531
50
For Eastern North Carolina
JDIG Retained One NC Retained
Tota
l # o
f Job
s
Location Decision Factors Mentioned
Labor
Incentive
s
Training/E
du.
Markets
Land / B
uilding
Infrastr
ucture
Logis
tics
Supplie
rs
Utility ra
tes0
10
20
30
40
50
60
70
...for all of North Carolina
Labor
Markets
Transp
ortation / I
nfrastr
ucture
Training /
R&D
Incentive
s
Land / B
uilding
Supplie
rs
Utility ra
tes
Logis
tics05
1015202530
...for Eastern North Carolina
Above data is from the 2009 media study covering 1996 - 2008.
Competitor States
VA SC MD GA FL PA TN AL TX0
2
4
6
8
10
12
...for Eastern North CarolinaVA SC FL GA PA TN MD TX AL
0
5
10
15
20
25
30
35
40
...for all of North Carolina
Above data is from the 2009 media study covering 1996 - 2008.