Agenda Package - 02-11-11 Retreat

Home Browse Search

Harnett Uounty, NU >) Incentives Page 2 of 4 G1'7 Eligible taxpayers may claim a credit based on a percentage of the cost of capitalized tangible personal property that is placed in service during the taxable year, in excess of an applicable threshold. This credit is taken in equal installments over four years, beginning the year after the property is first placed in service. The credit percentage and threshold are based on the tier designation of the county where the property is placed in service. The following investment thresholds apply: Harnett County (tier 2) ........ ............................... .....................$1,000,000 Harnett County (tier 2) Credit Percentage... ...................... __ .................. 5% Property located in designated AGZ has no threshold minimum and receives a 7% credit. Research and Development Tax Credit Taxpayers that have qualified for North Carolina research expenses during a taxable year are allowed a credit equal to a percentage of those expenses, determined in the following manner: 1. Small business - If the taxpayer was a small business as of the last day of the taxable year, the applicable percentage is 3 %. 2. Low -tier research - For expenses with respect to research performed in a development tier 1 county, the applicable percentage is 3 %. 3. Other research - For expenses not covered under items (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: $0 -$50 million 1% $50 -$200 million 2% Over $200 million 3% Only one credit is allowed with respect to the same expenses, and 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 item (2) and the remainder qualifies under item (3), the applicable percentages apply separately to each part of the expenses. Note: This summary is not meant to be exhaustive. Taxpayers should review the Article 3J statutes prior to claiming credits. Taxpayers that are uncertain about their eligibility or ineligibility to claim credits after reviewing the Article 3J statutes should consult with the Department of Revenue. No application is required to claim Article 3J credits. County of Harnett Incentives Overview The Harnett County Economic Development Commission, in cooperation with the governing body of Harnett County, may provide financial incentives for companies seeking to expand or relocate in Harnett County. The incentive program is designed to stimulate development in Harnett County by creating new investments and new jobs with higher wage rates. Harnett County Economic Development Incentive (EDI) Grant Program The EDI Grant involves a contractual agreement between the County and a new or existing business/ industry that would allow for a financial incentive grant based upon the actual value, schedule and payment of county property taxes for a period of up to seven (7) years. The County will require the business/ industry to pay in full annually total property taxes due. If the business/ industry has met specific criteria as outlined in a formal agreement, a portion of the property tax paid by that business/ industry to the County for up to seven (7) consecutive tax years would be • returned to the business/ industry. The terms of the Grant will be based on the amount of investment. Each project will be considered on an individual basis using guidelines established under the direction of the Harnett County Board of Commissioners. http:// wxv nv. harnettede .org /incentiv- 10_asp ?v =p& 2/17/2010