Job Development Investment Grants (JDIG)
The State of North Carolina’s 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.
The JDIG program is overseen by the Economic Investment Committee (the "Committee"). Five members serve on the Committee – the state’s Secretary of Commerce, the Secretary of Revenue, the Director of the Office of State Budget and Management, and two private sector members appointed by the North Carolina General Assembly.
Program Requirements: A proposed project must meet a rigorous set of criteria. The Committee must find:
- The project results in a net increase in employment.
- The project increases opportunities for employment and strengthen the state's economy.
- The project is consistent with the economic development goals of the state and of the area in which it is located.
- The project is competitive with another state(s) or country.
- The grant is necessary for the completion of the project in North Carolina.
The company must meet certain state health insurance and workplace safety requirements. The proposed project's benefits must outweigh its costs, thus rendering the grant appropriate. A cost benefit analysis is done for each project, and the Committee identifies and selects projects that are most beneficial, after considering a number of different evaluation factors.
Helpful Resources | Job Development Investment Grants (JDIG)
North Carolina statute requires that the business maintain operations at the project location, or at another approved site, for at least 150% of the term of the grant. Also, the agreement must include a claw-back provision to recapture all or part of the grant, at the committee's discretion, if the business fails to remain at the site for the required years. The final Community Economic Development agreement must be reviewed and signed by the state Attorney General.
Maximum Amounts: JDIG grants can result in payments to a business for up to 12 years. The total amount paid out in any one of those years cannot exceed $15 million, giving the Committee up to $180 million to allocate in benefits to the businesses over a 12-year period.
The statute authorizes awards from 10% to 75% of withholdings for eligible positions. Similarly, the term of the grant may not exceed 12 years. Even with statutory requirements, the Committee has discretion in weighing factors to award projects and fix the amounts, terms and time periods of grants.
For more information, download Criteria for Operation and Implementation of Job Development Investment Grant Program, a comprehensive description of the program.
Links to Relevant North Carolina General Statutes:
- §143B-437.50 Legislative findings and purpose.
- §143B-437.51 Definitions.
- §143B-437.52 Job Development Investment Grant.
- §143B-437.53 Eligible projects.
- §143B-437.54 Economic Investment Committee established.
- §143B-437.55 Applications; fees; reports; study.
- §143B-437.56 Calculation of minimum and maximum grants; factors considered.
- §143B-437.57 Community economic development agreement.
- §143B-437.58 Grant recipient to submit records.
- §143B-437.59 Failure to comply with agreement.
- §143B-437.60 Disbursement of grant.
- §143B-437.61 Transfer to Industrial Development Fund.
- §143B-437.62 Expiration.
- §143B-437.63 JDIG Program cash flow requirements.