Support For Economic Development
And Expansion Incentives
Position: The North
Carolina General Assembly should give continued priority to keeping
the state competitive in terms of economic development and
recruitment. Cost-efficient and competitive tax, financial, energy and
infrastructure incentives should be a viable tool when encouraging
companies to relocate here or to assist existing companies in their
in-state expansion efforts, especially in those of areas of the state
where economic growth has lagged behind other parts of North Carolina.
Special consideration should be given by Commerce officials to
maintaining a balance between existing and new industry when utilizing
economic development incentives.
The Legislature should also increase the amount of funding for
“access roads” to new or expanded businesses and industries as the
current $2 million fund has proven to be insufficient.
N. C. General Assembly enacted the Economic Opportunity Act of
1998, providing a combination
of tax and financial incentives to two companies making a significant
investment in North Carolina. Federal Express is building a
$300-million facility at the Piedmont Triad International
Airport in Greensboro while Nucor is building a $300-million steel
mill in Hertford County and hiring 300 people in this economically
distressed portion of the state. In addition, the Economic Opportunity
Act provides a tax credit to existing businesses that create jobs in
"blighted urban areas", defined as zones where 20 percent or
more of the residents have incomes below the poverty level. 50 N. C.
cities include zones that qualify under this criteria,
North Carolina has been a
national leader in economic development announcements for most of this
decade but the state fell to fifth place in 1997, one critical
indicator of increased competition from other states willing and ready
to provide tax and financial inducements to industry. In recent years,
our state has lost several high-profile industrial recruitment battles
because other states offered attractive incentives while North
Carolina did not.
The incentives utilized by
the state in the Federal Express recruitment and Nucor expansion are
worthy examples Where the economic benefits derived by the state and
its citizens clearly outweighed any potential cost to the state while
keeping North Carolina attractive and viable in a highly-competitive
economic development environment.
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Support For Community Colleges
Support For Travel And Tourism
North Carolina State Ports