Economic IncentiveDeals in NC andEastern NorthCarolina

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.