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Incentives and Business Resources
Grant Program
Facade Grant Program: The City of Raleigh’s Façade Grant Program helps businesses and property owners in older commercial areas upgrade and improve their building’s exterior appearance. The program requires a 50/50 match and reimburses approved applicants up to $5,000.
Eligible improvements include:
- The removal of false fronts (such as aluminum panels)
- Repair or replacement of windows, doors, and cornices
- Repair or replacement of façade materials
- New, more appropriate signage
- New awnings
- Exterior painting (when part of a larger rehab effort)
For more information about applying for this program, contact:
Carter Pettibone
Planner II
Planning Department
133 Fayetteville Street, Suite 100
Raleigh, NC 27601
(919) 807-8482
carter.pettibone@raleighnc.gov
www.raleighnc.gov/business/content/PlanUrbanDesign/Articles/FacadeGrant.html
Loan Program
Downtown Loan Pool Program: The City of Raleigh administers a loan program designed for new and/or expanding downtown businesses and commercial property owners seeking to improve properties. The program offers secured direct loans from the City of Raleigh. Qualified applicants must show they are unable to secure financing from financial institutions for the amount being requested from this program.
For more information contact:
Paul Reimel, Economic Development Manager at the DRA: paulreimel@downtownraleigh.org, or via phone, 919-832-1231.
City of Raleigh contact:
Luther R. Williams
Business Assistance Program Manager
Administrative Services Department
222 West Hargett Street, Room 302
Raleigh, NC 27602
(919) 996-4278
Job Creation and Investment Based Incentives
Raleigh, Wake County and the State of North Carolina offer various incentives to eligible businesses relocating or expanding in the community. For a comprehensive list of incentives, and the eligibility requirements associated with them, please visit Raleigh Economic Development’s website. For all specific questions regarding these incentives, contact James Sauls with Raleigh Economic Development at jsauls@raleighchamber.org.
Tax Credits
Article 3J Tax Credits
*Note: The City of Raleigh has created a designated Urban Progress Zone (UPZ) that significantly enhances the value of the tax credits. Downtown Raleigh is located within the Urban Progress Zone (UPZ) and eligible businesses looking to create jobs and invest in business property within Downtown Raleigh are awarded these enhanced tax credits as outlined below.
Credit for Creating Jobs
Eligible taxpayers that meet a minimum threshold of new full-time jobs created during the taxable year may claim a credit for each new job created. The credit is taken in equal installments over four years following the year the jobs are created.
|
Raleigh |
Raleigh UPZ* |
|
|
Job Threshold |
15 |
5 |
|
Credit per Job |
$750 |
$1,750 |
Credit for Investing in Business Property
Eligible taxpayers may claim a credit based on a percentage of the cost of capitalized tangible personal property that is placed in service during the taxable year, in excess of an applicable threshold. The credit is taken in four equal installments over four years, beginning the year after the property is first placed in service.
|
Raleigh |
Raleigh UPZ* |
|
|
Threshold |
$2 million |
$0 |
|
Credit % |
3.50% |
7% |
* Raleigh has created a designated Urban Progress Zone (UPZ) that significantly enhances the value of the tax credits.
For more detailed information about eligibility and minimum requirements, please visit the portion of the North Carolina Department of Commerce website devoted to Article 3J.
R&D Tax Credits
The amount of the Research and Development tax credit is based on a percentage of qualified research expenses. Please note the enhanced credits for research performed with North Carolina Universities.**
Businesses with qualified North Carolina research expenses are allowed a credit equal to a percentage of those expenses. The allowable credits are determined by:
Small business (annual receipts less than $1 million): Qualified businesses on the last day of the taxable year are allowed a credit of 3.25%.
Other research: For businesses with annual receipts greater than $1 million, refer to the table below for qualified research expenses during a taxable year:
|
Qualified Expenses |
Rate |
|
$0 - $50 million |
1.25% |
|
$50 -$200 million |
2.25% |
|
$200 million+ |
3.25% |
** A business with North Carolina university research expenses for the taxable year is allowed a credit equal to 20% of those expenses.
For more detailed information about the R&D tax credits, please visit the portion of the NorthCarolina Department of Commerce website devoted to R&D tax credits.
Job Development Investment Grant
The Job Development Investment Grant (JDIG) is a discretionary incentive that provides sustained annual grants to new and expanding businesses measured against a percentage of withholding taxes paid by new employees. Only 25 grants are available statewide annually.
Due to the size and scope of this program, JDIG is only available for very large economic development projects.
For more information about JDIG, please visit the portion of the North Carolina Department of Commerce website devoted to JDIG.
One North Carolina Fund
The One North Carolina Fund helps recruit and expand quality jobs in high value-added, knowledge-driven industries. The fund is competitive and the location or expansion must be in competition with another location outside the state.
For a company to be considered:
- The Company must agree to meet an average wage test.
- Local units of government (city or county) must agree to match financial assistance to the company.
For more information about the One North Carolina Fund, please visit the portion of the NorthCarolina Department of Commerce website devoted to OneNC.
Business Resources
Starting a new business? The City of Raleigh has provided a useful list of questions and answers for prospective business owners to review. Click here for more information.
Business ServiCenter: The State of North Carolina has a Business ServiCenter with business specialists to assist you with every step of establishing your business. You can reach them by calling (919) 715-2864 or by going online at www.nccommerce.com/en/BusinessServices/StartYourBusiness.
Small Business Center (SBC) at Wake Tech Community College: A state funded organization which is part of the Small Business Center Network of North Carolina. The SBC provides small business owners with information they need for starting or expanding their small business and offers, confidential, one-on-one counseling with the Small Business Center Director. For more information call (919) 335-1001 or visit www.smallbusinesscenter.waketech.edu.
SCORE: Offers free business counseling resources. For more information, call (919) 856-4739 from Mon-Fri (9 am-12 pm) or visit www.raleighscore.org.
NC Small Business and Technology Development Center (SBTDC): The SBTDC is the business and technology extension service of the University of North Carolina which oversees the 16 constituent institutions of the University system. The SBTDC is administered by North Carolina State and operated in partnership with US Small Business Administration. It is committed to providing knowledge, education and other supportive resources that enable existing small and mid-sized businesses, emerging entrepreneurs and local/state leaders to innovate and succeed. For more information, please contact (919) 715-7272 or (800) 258-0862 (in NC only), email info@sbtdc.org, or visit www.sbtdc.org.
Business Link North Carolina: BLNC, or "blink," is a business resource access point for an extensive network of experts who can help your business succeed. Business Link North Carolina can connect you to services provided by state-supported agencies, many of which are free. Call BLNC toll-free, 1-800-228-8443, Monday-Friday, 8 a.m. to 5 p.m. Eastern Time, to talk with one of our business counselors, or visit www.blnc.gov/.
N.C. Capital Access Program: This program expands business finance options for businesses across the state. By reducing risk, it encourages banks and other qualified lenders to consider loans that otherwise fall just outside of conventional underwriting standards. For a list of participating banks and institutions as well as more information about the program, visit www.ncruralcenter.org/business-programs/capaccess.html or contact Tony Johnson 919-250-4314 at the NC Rural Economic Development Center.
For information about incentives in Raleigh/Wake County/North Carolina including credit for creating jobs, credit for investing in business property, research and development credits, job development investment grant, and the One North Carolina Fund, please reference www.raleigh4u.com/page/incentives.
