Our business tax incentives—offered to new and existing businesses across various industries and activities—give you the opportunity to reduce costs, create jobs and spur investment. Our team of experts can shed light on understanding the process and explain programs that fit your needs. Explore what programs are available to your company below, from state to local.
Taxes, Incentives, Opportunity Zones
Overview
Supporting Relocating & Expanding Businesses
State Taxes & Incentives
- Job Development Investment Grant (JDIG): Sustained annual grants to new and expanding businesses measured against a percentage of withholding taxes paid by new employees. In Buncombe County, 75% of the annual grant is paid to the company, and 25% is transferred into the Utility Account. Qualifying companies in Buncombe County must meet the following requirement: 200 jobs at an average wage of 115% of the county average wage or the state average wage, whichever is lower, and a capital investment equal to or greater than $10,000 per job.
- One North Carolina Fund (OneNC): A discretionary cash-grant program that allows the Governor to respond quickly to competitive job creation projects. Awards are based on the number of jobs created, level of investment, location of the project, economic impact of the project and the important of the project to the state and region. To qualify in Buncombe County, the company must meet the following: 40 jobs at an average wage of 110% of the county average wage or the state average wage, whichever is lower. As rule of thumb, projects are typically funded at $1,000 per job. By statute, OneNC requires that Buncombe County provides no less than one dollar for every dollar provided by OneNC.
- Research & Development Tax Credit: A taxpayer that has qualified North Carolina research expenses for the taxable year is allowed a credit equal to a percentage of the expenses.
- Customized Labor Training: To support three key aspects of a company’s well-being—job growth, technology investment and productivity enhancement the state provides customized labor training through Asheville-Buncombe Technical Community College with services including training assessment, coursework design, training delivery and related instructional costs.
- Sales Tax Exemption on Machinery & Equipment Purchases: Manufacturers, certain recyclers, research and development companies, and eligible datacenters are exempt from sales tax on purchases of machinery and equipment. In lieu of sales tax, these purchases are subject to a privilege tax at the rate of 1 percent of the sales price, capped at a maximum tax of $80 per article.
Local Taxes & Incentives
Both local governmental units have adopted incentive policies that provide for grants to be paid back to projects based on their capital investment and other criteria such as number of new jobs created, and quality of wages. Please contact the EDC to learn more
- Buncombe County and Asheville City Incentive Policies: Typically, new and expanding companies that invest a minimum of $1.5 million dollars in new construction, machinery and equipment in Buncombe County and/or the City of Asheville, may be eligible for an economic development incentive grant from Buncombe County and/ or the City of Asheville. Qualifying companies include manufacturing, science and technology and corporate headquarters.
Asheville Opportunity Zones
Opportunity Zones were created to stimulate growth in communities across America by providing a tax incentive for private investors to make long-term investments in low-income communities. An area must have a poverty rate of 20% or greater and/or a median household income that is less than 80% of the area’s median income.
- Asheville’s Opportunity Zones include residential areas, the River Arts District, and the South Slope border. See where these Opportunity Zones are located in the map to the right. Additional Opportunity Zones exist in the surrounding areas, such as Haywood, Madison, and Henderson counties.
- Rather than paying taxes on unrealized capital gains, investors have the option to reinvest these gains into Opportunity Zones by placing the gains in an Opportunity Fund. As long as the funds remain invested, taxation is temporarily deferred. If gains remain invested in opportunity zones for 10 years, the capital gains tax is permanently waived.
- Opportunity Funds allow for investment in operating businesses, equipment, and real property. The fund must be dedicated to small business investment or economic development and can be structured as a corporation or partnership. To create an Opportunity Fund, eligible taxpayers may self-certify by filing a simple form with their annual federal income tax return.
To learn more about Opportunity Zones in Asheville and Buncombe County, contact Clark Duncan, Senior VP of Economic Development, at cduncan@ashevillechamber.org.
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Clark Duncan
Senior Vice President of Economic Development