Business Facilities - February 2009 - (Page 34)

BUSINESS REPORT North Carolina est corporate tax rates in the Southeast, which is perceived to be a significant disadvantage in attracting companies,” the authors state. The state’s two big discretionary incentives are the Job Development Investment Grant (JDIG) program and the One North Carolina Fund, which is lauded for bringing 19,000 jobs and $3 billion in corporate investment since 2001. Both programs are used for targeted industries, and both are performancebased, meaning companies must meet criteria such as job creation, average wage and investment targets before money is awarded. “They don’t get the money if they don’t perform. That’s the bottom line,” Neal says. “And if they do perform, but then leave, there are clawback provisions.” The state can award 25 JDIGs per year, with payouts to each business lasting up to 12 years. Among the 2008 recipients were Mack Trucks, Inc., which could yield $8.5 million after relocating its headquarters from Allentown, PA, to Greensboro, creating 493 jobs and investing $17.7 million. On a larger scale, Spirit AeroSystems, Inc., will open a plant at the Global TransPark in Kinston, investing more than $570.5 million and creating 1,031 jobs; its JDIG could reach $20.23 million. Also, GE Hitachi Nuclear Energy Americas will expand its campus near Wilmington, creating 900 jobs, investing $704 million, and garnering up to $25.7 million in JDIG money. “Having [JDIG and the One N.C. Fund] in our toolkit has been very important to recruiting knowledgebased companies,” Neal says. “The JDIG program was created in ’02 and just started in ’03, and what you can see if you look at a list of the JDIGs is how many of the companies that have either expanded through JDIG or been recruited through JDIG … are primarily in the targeted industries that North Carolina is looking for. In other words we’re using the discretionary incentives to recruit the kind of industry and jobs that will be sustainable.” To date, 84 JDIGs have been issued, with commitments of nearly 32,000 jobs and $4.9 billion in investment. One new incentive program that is taking off is the Green Business Fund, championed by Perdue when she was lieutenant governor in an effort to develop and commercialize technologies in areas such as biofuels, green building and renewable energy. In 2008, its first year, the program received 85 applications and awarded 13 grants. Examples included $100,000 each for companies with operations such as converting hog manure to electric power; developing a natural, fiber-reinforced concrete formula; and opening a photovoltaic solar cell production facility. Neal says interest in the program “has skyrocketed,” and the state will look to grow the fund. “Green collar jobs, the green economy, are, I think, inherent to our cul- Former Gov. Mike Easley, third from right, announced in October that Sandvik Inc., an international supplier of cutting tools and other engineered equipment, plans to expand its Mebane plant in Alamance County. The company expects to invest $85 million and add 51 jobs during the next three years. 34 FEBRUARY 2009 PHOTO CREDIT: NORTH CAROLINA DEPARTMENT OF COMMERCE

Table of Contents Feed for the Digital Edition of Business Facilities - February 2009

Business Facilities - February 2009 Contents First Word Snapshots Corporate Moves: Ohio Governor's Report Growth Magnets Industry Focus: Automotive International Report: Luxembourg Corporate Moves: Tennessee Cream of the Crop in North Carolina Advertiser Index Ask the Expert

Business Facilities - February 2009

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