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.