Doing business in Hertford County, North Carolina is profitable for new and expanding companies. Tax credits are available for manufacturing, data processing, and warehousing/distribution companies paying at least 100% of the average county wage. All credits are taken against the state income and franchise tax and have a 5-year carry-forward for each eligible year. Total value of tax credits cannot exceed 50% of annual tax liability.

Corporate Income Tax Reduction

The corporate income tax is reduced to 7.5% in 1997, 7.25% in 1998, 7.00% in 1999, and 6.90% in 2000.

Jobs Creation Tax Credit

Firms with at least 5 full-time employees working 40 or more weeks during the taxable year can take a credit for each new job created, taken in equal installments over four years. Tax credits per new job are $12,500.

Investment Tax Credit

The investment tax credit equals 7% of the excess value (above the applicable threshold) of machinery and equipment placed in service by eligible new or expanding firms. The credit is taken in equal installments over the 7 years after the machinery and equipment is first placed in service (generally when it is capitalized on the books). There is no applicable threshold in Hertford County.

Worker Training Tax Credit

Firms receive a worker training tax credit for training employees. Firms can take a credit of 50% against eligible expenses if the firm provides training for 5 or more employees (up to a $1,000 credit value for each employee trained). Firms must also be eligible for the jobs creation or investment tax credit.

Research and Development Tax Credit

The R&D tax credit enables firms that qualify for the Federal Research and Experimentation Tax Credit to take a state tax credit equal to 5% of the state’s apportioned share of the taxpayer’s expenditures for R&D.

Business Property Tax Credit

The credit equals 4.5% of tangible personal business property capitalized under the tax code, up to a maximum single-year credit of $4,500. The credit is taken in 5 equal installments beginning in the taxable year the property is placed in service. The credit is available to all business sectors in North Carolina’s Northeast.

Other Financial Incentives

Firms locating or expanding in Hertford County receive additional incentives including access to a special utility fund, priority status for CDBG Economic Development grants, and waiver of local match requirements for CDBG Economic Development grants and Industrial Development Fund loans and grants.