Business Development Grant (Wake County)

Business Development Grant (Wake County) is sponsored by Wake County Economic Development. This grant is for new or existing companies that meet specific investment, new job creation thresholds, and wage requirements. Special consideration may be provided for Fortune 1000 companies and large international companies.

Incentives | Wake County Economic Development Wake County wants to support your success. We understand that a major barrier for companies looking to expand or relocate is cost; the cost of space, the cost of equipment, the cost of training employees. There are a number of ways organizations in our area can help your bottom line.

We always have tools to support a growing business. Wake County Business Development Grant Support the development of an economic environment that attracts or encourages new investment, creates new jobs, results in a diverse tax base, promotes economic mobility, and supports sustainable business practices.

An existing or new company (“economic development projects”) may be eligible for a Business Development Grant if they meet a new investment threshold, a new jobs threshold, and wage requirements detailed in this policy. Special consideration may be provided for Fortune 1000 companies and large international companies.

New or existing companies seeking a Business Development Grant must report the average wages across all jobs associated with the project being considered. To qualify for a grant under this policy, the Company must meet defined wage thresholds established for the corresponding grant tier.

The commissioners may consider offering grants to companies that do not meet the wage threshold if the Company provides adequate documentation demonstrating it would qualify for the Upward Mobility Bonus (see below), qualify for a comparable incentive from a local municipality, or is an employer that promotes economic mobility. New or existing companies may be eligible for a Business Development Grant for New Investment.

Grants are a percentage of the new Wake County property tax revenue attributable to New Investment in the project (“Incentive Percentage” below). New Investment is defined as “improvements to real estate, machinery, equipment, and other business personal property.

” The Investment Minimums outlined below represent the minimum, new, taxable property valuation attributable to New Investment in the project required to qualify for the grant tier. The value of land does not count towards the investment minimums. Property valuations are determined by the Wake County Tax Administrator.

New or existing companies may be eligible for a Business Development Grant when the investment threshold is met, and new jobs are created as outlined below. New jobs are defined as a new increase in the company’s number of full-time Wake County employees.

A full-time employee is defined as a person who is employed by the company working at least 35 hours per week, and whose wages are subject to withholding under Article 4A of Chapter 105 of the North Carolina General Statutes.

Salary and employment documentation provided to the NC Department of Commerce, North Carolina Employer’s Tax and Wage Reports, or other information as determined by the Wake County Finance Department will serve as Wake County documentation of job creation. Business Development Grant & Job Creation Thresholds Investment Minimum Jobs Minimum Avg.

Salary Minimum Incentive Percentage Max Years Tier 1 $100 million 50 100% 50% new tax growth 8 years Tier 2 $50 million 50 100% 35% new tax growth 5 years Tier 3 $25 million 50 100% 30% new tax growth 5 years Transformational Projects New or existing companies may be eligible for a Business Development Grant, Transformational Project Tier, when the investment threshold is met, and new jobs are created as outlined below.

Projects that qualify for this Tier may be afforded, at the discretion of the county board, a different incentive percentage and grants period corresponding to impact of the project. Investment Minimum Jobs Minimum Avg.

Salary Minimum Incentive Percentage Max Years Transformational Projects $500 million 100 100% TBD 10 years New or existing companies may be eligible for a Business Development Grant when the state incentive requires local government participation and when the investment and jobs thresholds meet or exceed the minimum as outlined below. Investment Minimum Jobs Minimum Avg.

Salary Minimum Incentive Percentage Max Years State Match $2 million 25 100% 35% new tax growth 3 years New or existing companies may be eligible for a Business Development Grant when locating or expanding in a designated Priority Growth Area when investment and job creation thresholds meet or exceed the minimum outlined below are eligible. Investment Minimum Jobs Minimum Avg.

Salary Minimum Incentive Percentage Max Years Priority Growth Area $2 million 20 Wake County Living Wage 35% new tax growth 5 years New or existing headquarters may be eligible for a Business Development Grant when the investment, jobs, and salary thresholds meet or exceed the minimums below. For the purposes of this policy, a headquarters is defined as a corporate or national headquarters.

Regional headquarters serving as a company’s headquarters for a multi-national region are also eligible. Wake County Economic Development will assess the headquarters status and qualifications. Special consideration may be provided for Fortune 1000 companies and large international companies.

Investment Minumum Jobs Minimum Avg. Salary Minimum Incentive Max Years Headquarters $2 million 35 120% County Average Wage $1,000 per job 3 years After qualifying for a Business Development Grant under Wake County policy, new or existing companies may be eligible for a Business Development Grant Bonus of 5% of additional new tax revenue growth attributable to the project when meeting conditions outlined below.

Projects qualifying for a Business Development grant under the Headquarters tier would receive an additional 5% of the job-based incentive payment each year. The bonus is intended to encourage business practices that reduce barriers to employment and economic mobility, not inconsistent with NCGS 143-162. 6.

The company meets all following conditions: Prohibits discrimination against applicants and employees in hiring, promotion, discharge, pay, fringe benefits, job training, classification, referral, and other aspects of employment on the basis of race, natural hair or hairstyles, ethnicity, creed, color, sex, pregnancy, marital or familial status, sexual orientation, gender identity or expression, national origin or ancestry, National Guard or veteran status, religious belief or non-belief, age, or disability.

Offers health insurance to employees and dependents at a level generally considered affordable. Leave policies accommodate vacation, sick, bereavement, and parental leave. The company provides other programs that reduce barriers to employment and economic mobility, including at least two of the following: Program(s) that offset costs to employees associated with childcare.

Program(s) that offset costs to employees associated with transportation. Program(s) that offset costs to employees associated with tuition or related educational expenses that increase employee skills and opportunities for advancement. Second chance hiring practices, including removal of prior conviction checkoffs.

Business Development Grants will be considered for companies meeting the new investment and new job thresholds. The Board of Commissioners is not obligated to make any grants. All projects will be considered on a case-by-case basis.

The County will consider several factors (in addition to level of new investment and number of new jobs) when determining approval of a Business Development Grant, including: a.

Type of business, relative to current tax base The presence of competition for the projects Business practices, such as employee benefits offered, wellness and health benefits, leave policies, community involvement practices, or other innovative programs to support economic mobility and employee health and wellbeing. Business practices, such as LEED certification, WELL Building Standard, or other sustainability initiatives.

Economic mobility and opportunity The amount of the grant payment to be paid by the County shall be consistent with the investment and jobs minimum as established in the grant agreement. In no event shall the grant amount exceed the amount of ad valorem taxes paid by the company on the new investment in that calendar year.

The County will require that the assessed value of new investment is confirmed by the Wake County Tax Administrator and that all property taxes are paid prior to providing a grant payment. For projects/companies considering locating (or expanding) in one of the municipalities within Wake County, the County’s participation in a Business Development Grant is contingent on participation by the municipality.

All grant agreements are subject to performance criteria that will be outlined in detail in a Business Development Grant contract between the company and the County approved in an open meeting of the Wake County Commissioners. The contract will outline that grant payments are contingent on achievement of performance criteria during each year of the grant.

State of North Carolina Discretionary Incentives The State of North Carolina also offers discretionary incentive programs. The two programs are the Job Development Investment Grant and the One North Carolina Fund .

Water and Sewer Installation Reimbursement For projects locating in the Research Triangle Park (RTP), Wake County allows for a reimbursement of the cost of the extension of water and sewer lines to within 5 feet of a building. The company or its contractors are eligible for the reimbursement. Wake County Economic Development can assist companies and their team members in a variety of ways.

Contact us to learn more about these resources. Workforce Development and Training Incentives Here in Wake County, we believe in collaborative partnerships between the education system, workforce boards and ourselves to help support the entire workforce pipeline. Wake County has 12 municipalities.

Each of these municipalities has their own incentive policy that can be used in conjunction with other county, workforce development, or state incentives. To learn more about these incentives, please contact us. Have questions about incentives?

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