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Semelhante a Economic Incentive Deals in NC and Eastern North Carolina
Semelhante a Economic Incentive Deals in NC and Eastern North Carolina (20)
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Economic Incentive Deals in NC and Eastern North Carolina
- 1. Economic Incentive Deals in NC and Eastern North Carolina Data from 2007 – 2013 unless otherwise noted.
- 2. The Eastern Plains Region • An 18-county region defined by the Kenan Institute as Beaufort, Bertie, Duplin, Edgecombe, Gates, Greene, Halifax, Hertford, Jones, Lenoir, Martin, Nash, Northampton, Pitt, Warren, Washington, Wayne, and Wilson. The largest metro area in this region is Greenville in Pitt County, home to over 87,000 people. This region is characterized by high unemployment rates, persistent poverty, and low population growth.
- 3. Eastern Regional Partnerships Eastern NC is comprised of three economic development regional partnerships encompassing 40 counties, including: • Northeast: Beaufort, Bertie, Camden, Chowan, Currituck, Dare, Gates, Halifax, Hertford, Martin, Northampton, Pasquotank, Perquimans, Tyrrell, Washington • Eastern: Carteret, Craven, Duplin, Edgecombe, Greene, Jones, Lenoir, Nash, Onslow, Pamlico, Pitt, Wayne, Wilson • Southeast: Bladen, Brunswick, Columbus, Cumberland, Hoke, New Hanover, Pender, Richmond, Robeson, Sampson, Scotland
- 4. North Carolina Incentives • Statutory Incentives: Statutory incentives are tax breaks guaranteed by law to companies that meet certain requirements. This work does not look at statutory incentives. • Discretionary Incentives: Discretionary incentives are economic development incentives that are offered on a firm-by-firm basis to individual companies. The company is required to meet the requirements defined in an inducement agreement. This report analyses discretionary incentives. • OneNC Fund: The OneNC fund provides matching grants to local governments seeking to recruit or retain a company. Unless paired with a JDIG, OneNC grants are usually disbursed in four equal installments. There are strict accountability rules for new job creation. • Jobs Development Investment Grant Program (JDIG): The JDIG Program provides cash incentives directly to companies based on a percentage of withholding taxes paid by employees. Up to 25 companies in the state can receive JDIG grants per year, with grants lasting up to 12 years. With this grant program, there are strict accountability rules based on job creation. • Job Maintenance and Capital Development Fund (JMAC): Provides a limited number of grants to assist businesses modernizing their manufacturing processes in Tier 1 counties. Grants are awarded to a business if it has at least (i) 2,000 employees, and invests at least $200 million in capital improvements, or (ii) 320 employees, and invests at least $65 million in capital improvements to convert existing manufacturing process and change the product it manufactures.
- 5. Data Sources on Incentives (1) 1996- 2008 Source: UNC-C3E Incentive Media Study, 2009 • NC Incentive Database: 391 Incentive Deals • Deals Gleaned from Newspapers • Eastern Incentive Database: 143 deals, 37% (2) 2007 -2013 Source: North Carolina Department of Commerce • NC Incentive Database: 465 Incentive Deals • Eastern Incentives: 103 deals, 22% Unless otherwise noted, all graphs and charts use the North Carolina Department of Commerce dataset and includes the years 2007 through 2013.
- 6. StatewideIncentiveDistribution, 2007-2013 (OneNC,JDIG,andJMAC) West 16% Charlotte 28% Piedmont Triad 19% Research Triangle 14% Southeast 8% East 8% Northeast 6% Multiple regions 1% Eastern North Carolina • 103 Deals; 22% of total • 35 deals for Southeast, 39 deals for Eastern, and 29 deals for Northeast 465 Total Incentives
- 7. Incentive Awards by Economic Tier Tier 1 32% Tier 2 28% Tier 3 39% Multiple 1% For all of North Carolina… Tier 1 62% Tier 2 31% Tier 3 7% For Eastern North Carolina… (Eastern, Southeast, and Northeast partnerships)
- 8. Firm Retention v. Firm Recruitment For North Carolina… Recruitment 55% Retention / Expansion 45% For Eastern North Carolina… Recruitment 58% Retention/ Expansion 42% Above data is from the 2009 media study covering 1996 - 2008.
- 9. Incentivized Industries 0 10 20 30 40 50 60 #ofIncentives(JDIG,OneNC,&JMAC) North Carolina Eastern North Carolina Top 5 Eastern North Carolina Incentivized Industries: 1) Transportation equipment manufacturing 2) Plastics and Rubber Products Manufacturing 3) Food, Beverage, and Tobacco Product manufacturing 4) Fabricated Metal Product Manufacturing 5) Wood Product Manufacturing
- 10. Number of Incentives Over Time (JDIG,OneNC,andJMACcombined) 0 10 20 30 40 50 60 70 80 90 100 2007 2008 2009 2010 2011 2012 2013 Total#ofIncentives NC Eastern NC
- 11. Total Value of Incentives Over Time (JDIG,OneNC,andJMACcombined) $120,557,500 $197,823,975 $128,445,090 $122,386,350 $115,977,514 $160,533,304 $162,348,100 $9,882,500 $126,166,000 $3,558,000 $9,084,850 $4,704,400 $13,609,000 $4,724,000 $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 2007 2008 2009 2010 2011 2012 2013 TotalValue NC Eastern NC * In 2008, several large incentives were awarded to companies in Eastern North Carolina including a $34 million JDIG award to GE-Hitachi Nuclear Energy Americas LLC in New Hanover County; a $20 million JDIG award to Spirit AeroSystems North Carolina, Inc. in Lenoir County; and a $30 million JMAC award to Bridgestone Firestone North American Tire, LLC in Wilson County. *
- 12. Average Value of Incentives Over Time (JDIG,OneNC,andJMACcombined) $1,913,611.11 $4,209,020.74 $2,293,662.32 $1,406,739.66 $1,317,926.30 $1,911,110.76 $4,058,702.50 $380,096.15 $7,885,375.00 $355,800.00 $648,917.86 $336,028.57 $972,071.43 $524,888.89 $0.00 $1,000,000.00 $2,000,000.00 $3,000,000.00 $4,000,000.00 $5,000,000.00 $6,000,000.00 $7,000,000.00 $8,000,000.00 $9,000,000.00 2007 2008 2009 2010 2011 2012 2013 AverageValue NC Eastern NC * * In 2008, several large incentives were awarded to companies in Eastern North Carolina including a $34 million JDIG award to GE-Hitachi Nuclear Energy Americas LLC in New Hanover County; a $20 million JDIG award to Spirit AeroSystems North Carolina, Inc. in Lenoir County; and a $30 million JMAC award to Bridgestone Firestone North American Tire, LLC in Wilson County.
- 13. Source of State Funding JMAC 1% Combined JDIG/One NC 7% JDIG 20% One NC 72% All North Carolina JMAC 3% Combined JDIG/One NC 5% JDIG 9% One NC 83% Eastern North Carolina Incentive North Carolina Eastern North Carolina JMAC 3 3 Combined JDIG/One NC 33 5 JDIG 86* 9 One NC 309 82 *One less incentive than reported since one company received two JDIG grants for what appears to be the same project
- 14. Total Projected Number of Jobs Created 5445 5455 4660 5173 4398 6330 4653 3888 4709 5033 8132 5766 6703 3964 0 2000 4000 6000 8000 10000 12000 14000 2007 2008 2009 2010 2011 2012 2013 Total#ofJobs For all of North Carolina JDIG New One NC New *Does not include JMAC 952 2044 243 540 104 315 558 1555 1796 633 2174 1251 1012 543 0 500 1000 1500 2000 2500 3000 3500 4000 4500 2007 2008 2009 2010 2011 2012 2013 Total#ofJobs For Eastern North Carolina JDIG New One NC New
- 15. Total Projected Number of Jobs Retained 4379 7436 6562 6744 6728 9172 3577 13278 7580 8119 12726 11158 15611 3346 0 5000 10000 15000 20000 25000 30000 2007 2008 2009 2010 2011 2012 2013 Total#ofJobs For all of North Carolina JDIG Retained One NC Retained 344 1843 203 279 238 0 716 1543 2414 650 3329 1882 3531 50 0 500 1000 1500 2000 2500 3000 3500 4000 4500 2007 2008 2009 2010 2011 2012 2013 Total#ofJobs For Eastern North Carolina JDIG Retained One NC Retained
- 16. Location Decision Factors Mentioned 0 10 20 30 40 50 60 70 ...for all of North Carolina 0 5 10 15 20 25 30 ...for Eastern North Carolina Above data is from the 2009 media study covering 1996 - 2008.
- 17. Competitor States 0 2 4 6 8 10 12 VA SC MD GA FL PA TN AL TX ...for Eastern North Carolina 0 5 10 15 20 25 30 35 40 VA SC FL GA PA TN MD TX AL ...for all of North Carolina Above data is from the 2009 media study covering 1996 - 2008.