||Agrarian Growth Zones and Urban Progress Zones
||Department of Commerce
Division of Community Assistance
||As part of North Carolina's Article 3J tax credits program, the Agrarian Growth Zone (AG Zone) and the Urban Progress Zone (UP Zone) programs provide economic incentives to stimulate new investment and job creation in economically distressed areas. Article 3J Tax Credits offer several types of tax credits to eligible taxpayers that undertake qualifying initiatives. These credits may be used to offset up to 50% of the taxpayer¿s state income and/or franchise tax liability, and unused credits may be carried forward for up to five years.
Creating jobs ¿ Companies who meet a minimum threshold of new fulltime jobs created during the taxable year may claim a credit.
Investing in business property ¿ Companies can claim a credit based on a percentage of the cost of capitalized tangible personal property that is placed in service during the taxable year.
Investment in real property ¿ Companies that invest at least $10 million in real property within a three-year period and create at least 200 new jobs within two years are allowed a credit equal to 30% of the eligible investment.
||Only a county that has no municipality with a population in excess of 10,000 may request the designation of an Agrarian Growth Zone. Only a municipality with a population in excess of 10,000 may request the designation of an Urban Progress Zone.
|| State Amount not specified
|| Federal Amount not specified
|| Other Amount not specified
|| business development, economic development, business incentives