Job Maintenance and Capital Development Fund (JMAC) Grants
The Job Maintenance and Capital Development Investment Fund (“JMAC”) is intended to encourage retention of significant numbers of high-paying, high-quality jobs and large-scale capital investment that will modernize processes and provide more globally competitive products.
The JMAC Fund is a discretionary incentive program that provides sustained annual grants to businesses that meet the requirements of a Major Employer or a Large Manufacturing Employer.
To be considered a “Major Employer” under the statute, a business must be in a Development Tier 1 county at the time it applies for the grant, have at least 2,000 employees and invest at least $200 million in capital improvements; or
To be considered a “Large Manufacturing Employer” under the statute, a business must invest at least $50 million in capital improvements designed to convert its manufacturing process to change the product it manufactures or designed to enhance pollution controls or transition the manufacturing process from using coal to using natural gas for the purpose of becoming more energy efficient and reducing emissions. In addition, the business must either be in a Development Tier 1 county with at least 320 full-time employees, or be in a Development Tier 2 county with a population of less than 60,000 as of July 1, 2013 and employ at least 800 full-time employees.
A total of five (5) grants may be made under the program. Annual payments to grantees are subject to annual appropriations. Grants may be made for a term of up to 10 years. The sum of all grants awarded under the program may not exceed $79 million.
Annual grant payments are based on amounts a grantee pays in certain taxes on, or resulting from, new project machinery and equipment and building materials, worker training expenses, and state permitting fees for expansion.
The JMAC program is overseen by the Economic Investment Committee. Five members serve on this 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.
Helpful Resources | Job Maintenance and Capital Development Fund
Basic additional eligibility requirements for JMAC applicants:
- Local government entities must provide incentives equivalent to a tax credit of 50% of the incremental additional ad valorem taxes payable by a grantee on the required investment, over a period of between 5 and 10 years.
- Must have no overdue tax debts, OSHA, or North Carolina Department of Environmental and Natural Resources (DENR) violations.
Basic grant terms include:
- Eligibility for full grant payment requires retention of the lesser of the number of full-time jobs the grantee had at the time of application, or the number it had when it commenced the required investment.
- Must pay at least 140% of the average wage paid by all insured private employers in the county where the project is located.
- Must pay at least 50% of employee health insurance premiums.
- Major Employers must invest $200 million in capital improvements for the project within 6 years.
- Large Manufacturing Employers must invest $50 million in capital improvements for the project within 5 years of the initial expenditure, or repay entire grant.
- New employees must be U.S. citizens or have proper documentation of authorization to work in the U.S.
- Local government entities must provide the required level of incentives.
- Must not have overdue tax debts, OSHA or DENR violations.
- Must satisfy rigorous annual reporting requirements to establish grant compliance and eligibility for payments.
- Will be ineligible for grant payments, and may be subject to repayment obligations for grant payments previously received, and grant termination for certain performance failures.
- Will be required to execute agreements with the Department of Commerce governing grant terms. For a grant to be effective against the State, the agreement must also be signed by the Attorney General. The 5-member Economic Investment Committee which approves Job Development Investment Grant awards will recommend JMAC grant approvals and governing terms, after applying a rigorous set of criteria and evaluation factors enumerated in the governing documents for the program.
To recommend a grant, the Economic Investment Committee must find that:
- The conditions for eligibility have been met.
- A grant for the project is necessary to carry out the statutory public purposes.
- The project is consistent with the economic development goals of the State and of the area where it is located.
- The affected local governments have participated in retention efforts and offered incentives in a manner appropriate to the project, including providing at least fifty percent (50%) of the incremental additional local ad valorem tax payable by the grantee on required investment.
- The grant is necessary for the sustainability and maintenance of the project in this State.
- The total benefits of the project to the State outweigh its costs.
- The grant is consistent with statutory restrictions on the number and value of grants that may be awarded.
For more information, see the Job Maintenance and Capital Development Fund statute, and the Criteria for Operation and Implementation of Job Maintenance and Capital Development Fund Program, both provided below.
§ 143B 437 11 JMAC Statute with amendments
JMAC Criteria Effective 10-14-14