Courtesy of Senator Angela Bryant:
JDIG
JDIG is a discretionary grant program by the State to a new or expanding business for creating jobs in the State. Businesses apply for a grant to the Economic Investment Committee. Committee evaluates applications, selects projects for grants, and negotiates an agreement setting out amount of grant, the term of the grant (limited to no more than 12 years), and requirements. The grant amount is based on a percentage (ranging from 10% to 75%) of the personal income tax withholdings of eligible created positions, and the grant is automatically reduced 25% if the project is located in a tier 3 area and 15% if the project is located in a tier 2 area, with that reduction transferred to the Utility Account for rural infrastructure improvement. If a recipient fails to meet/comply with agreement requirements, the grant or term is reduced proportionately to the failure and the agreement may be terminated. Funds are disbursed only after the Secretary of Revenue has certified the amount of withholdings received in that year by the Department. Historically, maximum JDIG commitments have been $15M per calendar year.
JDIG Awards by County1 (2003-2014) in Senate District 4
|
Year |
Grantee |
County |
Tier |
Total Term Years |
Total Grant Amount |
Grant Amount Available to Company |
Grant Amount Available to Utility Fund |
Min. Capital Investment |
Min. Jobs Total |
Status |
|
2004 |
PCB Piezotronics of North Carolina, Inc. |
Halifax |
1 |
10 |
$1,602,000 |
$1,602,000 |
$0 |
$1,800,000 |
212 |
T2 |
|
2012 |
Klausner Lumber Two, LLC |
Halifax |
1 |
11 |
$3,913,000 |
$3,913,000 |
$0 |
$99,000,000 |
315 |
A3 |
|
2009 |
LS Tractor USA, LLC |
Nash |
2 |
9 |
$1,170,000 |
$994,500 |
$175,500 |
$12,420,000 |
134 |
T |
|
2011 |
Semprius, Inc. |
Vance |
1 |
11 |
$3,065,000 |
$3,065,000 |
$0 |
$80,730,000 |
230 |
T |
|
2008 |
Becton Dickinson and Company |
Durham, Wilson |
3, 1 |
9 |
$4,165,852 |
$3,384,205 |
$781,647 |
$121,260,000 |
247 |
T |
|
2014 |
Linamar Forgings, Inc. |
Wilson |
1 |
12 |
$993,000 |
$993,000 |
$0 |
$36,000,000 |
113 |
A |
1No information was available for Warren County
2T= Terminated
3A= Active
One NC
The One NC fund is a discretionary fund by the State to give money to locals to secure commitments for recruitment, expansion, or retention of new or existing businesses. Locals must use the money for equipment purchase or installation, modification of existing businesses for expansion, or infrastructure improvement for existing buildings or new/proposed buildings (if latter is used for manufacturing/industrial operations). The maximum One NC commitment is limited to $28M per fiscal biennium. Two agreements are involved in a One NC award: a local government grant agreement between the State and the local and a company performance agreement between the local and the recipient business. Funds may only be disbursed after the local has demonstrated the business has complied with the terms of the company performance agreement and may only be disbursed in accord with the schedule for disbursement. Guidelines for selection of projects to receive allocations from One NC are developed by the Commerce, in conjunction with the Governor’s Office.
One North Carolina Fund Awards (2001-2014) in Senate District 4
|
Award Year |
Company Name |
County |
Tier |
Awarded |
Investment |
New Jobs |
|
2004 |
Window Fashion Resource |
Halifax |
1 |
$200,000 |
$2,000,000 |
104 |
|
2005 |
Airboss Rubber Compounding |
Halifax |
1 |
$150,000 |
$5,000,000 |
86 |
|
2006 |
Halifax Linen |
Halifax |
1 |
$81,000 |
$1,686,000 |
81 |
|
2009 |
FASTA, Inc. |
Halifax |
1 |
$300,000 |
$2,500,000 |
105 |
|
2010 |
Empire Foods, Inc. |
Halifax |
1 |
$400,000 |
$2,500,000 |
180 |
|
2010 |
Reser’s Fine Foods, Inc. |
Halifax |
1 |
$1,000,000 |
$56,250,000 |
450 |
|
2011 |
LSA America, Inc. |
Halifax |
1 |
$136,000 |
$360,000 |
31 |
|
2012 |
Klausner Lumber Two, LLC |
Halifax |
1 |
$750,000 |
$99,000,000 |
315 |
|
2013 |
Meherrin River Forest Products, Inc. |
Halifax |
1 |
$80,000 |
$1,642,000 |
36 |
|
2002 |
Abbott Laboratories |
Nash |
3 |
$50,000 |
$16,000,000 |
50 |
|
2005 |
Eagle Press, Inc. |
Nash |
4 |
$25,000 |
$1,775,000 |
39 |
|
2005 |
New Standard Corp |
Nash |
4 |
$375,000 |
$10,000,000 |
200 |
|
2006 |
Hanes Geo Components |
Nash |
4 |
$212,000 |
$4,500,000 |
212 |
|
2006 |
R.W.and Able,Inc. |
Nash |
4 |
$25,000 |
$1,375,000 |
50 |
|
2007 |
Amerlink |
Nash |
2 |
$50,000 |
$1,800,000 |
50 |
|
2008 |
American Food |
Nash |
2 |
$50,000 |
$3,000,000 |
70 |
|
2012 |
Draka Elevator Products Inc. |
Nash |
2 |
$100,000 |
$2,800,000 |
60 |
|
2012 |
Hospira, Inc. |
Nash |
2 |
$645,000 |
$76,500,000 |
180 |
|
2013 |
Nutkao USA Inc. |
Nash |
2 |
$210,000 |
$6,500,000 |
50 |
|
2006 |
Florida Tanks |
Vance |
1 |
$50,000 |
$2,000,000 |
105 |
|
2006 |
Vescom America, Inc. |
Vance |
1 |
$125,000 |
$6,000,000 |
75 |
|
2011 |
Semprius, Inc. |
Vance |
1 |
$600,000 |
$80,730,000 |
230 |
|
2001 |
Eon Pharma, LLC |
Wilson |
3 |
$75,000 |
$26,400,754 |
135 |
|
2004 |
Kidde Technologies, Inc. (Aerospace) |
Wilson |
3 |
$80,000 |
$2,475,000 |
80 |
|
2005 |
Bruce Foods Corp |
Wilson |
4 |
$63,000 |
$3,800,000 |
52 |
|
2005 |
McMullen Architectural Systems Ltd |
Wilson |
2 |
$60,000 |
$2,185,000 |
32 |
|
2006 |
Absolute Plastics |
Wilson |
1 |
$300,000 |
$18,000,000 |
150 |
|
2006 |
IWCO |
Wilson |
1 |
$375,000 |
$21,410,000 |
538 |
|
2006 |
Kidde Technologies |
Wilson |
1 |
$150,000 |
$3,450,190 |
131 |
|
2006 |
Sandoz (Eon) |
Wilson |
3 |
$150,000 |
$10,000,000 |
65 |
|
2007 |
TYM-USA |
Wilson |
1 |
$30,000 |
$1,100,000 |
31 |
|
2012 |
WoodFuels North Carolina, LLC |
Wilson |
2 |
$100,000 |
$53,512,000 |
29 |
|
2014 |
Linamar Corporation |
Wilson |
1 |
$100,000 |
$40,000,000 |
125 |
CURRENT LAW:
TOTAL POTENTIAL LIABILITY EXCEEDS $1B IF COMPANIES MAXIMIZE PERFORMANCE
By April 1st of each year, the Department of Commerce publishes a study on the minimum
current funding level necessary to honor the State’s existing obligations.4 Commerce’s 2014 funding study showed that existing grant payments will continue into 2027 and if all companies perform at their maximum levels, associated funding requirements will total $753 million.5 Future award commitments will increase funding requirements in future fiscal years. At the time Commerce completed the 2014 Funding Study, the Department had not utilized $16.6 million of its $22.5 million FY 2013-15 Biennium cap; Commerce has since used $22.475 million, which amounts to an additional $199.1 million worth of future funding requirements if all companies perform at their maximum levels. Authority to grant new awards expires January 1, 2016. The remaining liability cap available to Commerce is $7.5 million for the first six months of FY 2015-16. Should this liability cap be fully utilized, an additional $90 million in future funding will be required.
4 §143B-437.55(e)
5 Actual JDIG payments are based on company performance related to job creation, wages, and capital investment. A portion of JDIG payments made to companies located in Tier 2 and 3 counties is directed to the Industrial Development Fund Utility Account for infrastructure development in Tier 1 and 2 counties.