North Carolina Job Development Investment Grant
About the Program
The Job Development Investment Grant (JDIG) is a performance-based, discretionary incentive program that provides cash grants directly to new and expanding companies to help offset the cost of locating or expanding a facility in the state. The amount of the grant is based on a percentage of the personal income tax withholdings associated with the new jobs.
The amount of a JDIG award is calculated by weighing several factors to determine its potential value, including the location of the project, the county tier designation, the number of net new jobs, the wages of the jobs compared to the county average wage, the level of investment and whether the industry is one of the state’s targeted industry sectors. Grant funds are disbursed annually, for up to 12 years, to approved companies following the satisfaction of performance criteria set out in grant agreements.
The North Carolina Department of Commerce annually ranks the state’s 100 counties based on economic well-being and assigns each a tier designation. The 40 most distressed counties are designated as Tier 1, the next 40 as Tier 2, and the 20 least distressed as Tier 3. This tier system is incorporated into JDIG to encourage economic activity in the less prosperous areas of the state.
- For projects located in a Tier 1 county: 100% of the annual grant is paid to the company.
- For projects located in a Tier 2 county: 90% of the annual grant is paid to the company, and 10% is transferred to the Utility Account, a state program to fund infrastructure projects in Tier 1 and Tier 2 counties.
- For projects located in a Tier 3 county: 75% of the annual grant is paid to the company, and 25% is transferred into the Utility Account.
The JDIG program also has provisions that allow for enhanced awards for qualifying project types, including High-Yield Projects (HYP), Transitional Projects, and Transformative Projects. Companies approved for an enhanced award can receive a grant worth up to 90% of the personal income withholdings, while the amount of the grant worth the remaining 10% is transferred to the Utility Account.
The High-Yield Project (HYP) provision applies to any company that creates 1,750 jobs and invests $500 million. The base period, the time frame within which new hires must be made, is up to 5 years and the maximum term of the grant is 20 years.
The Transitional Project provision applies to projects that occur in stages. For Phase I Transitional Projects, the company must create 1,750 jobs and invest $1 billion. The applicable base period is up to 5 years with a maximum grant term of 20 years. To trigger Phase II of the Transitional Projects provision, a company must exercise an option to expand the project within the first 36 months, up to at least 3,875 jobs and at least $3 billion of investment. For a company receiving an enhanced award for Phase II of the project, the base period is up to 10 years and the grant term is equal to the base period plus 30 years.
The Transformative Project provision applies to any company that creates 3,000 jobs and invests $1 billion. The base period is up to 10 years and the maximum grant term is the base period plus 30 years.
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