The Job Development Investment Grant (JDIG) is a performance-based, discretionary incentive program that provides cash grants directly to a company, when the company creates jobs and invests in the state. It's objective is to foster job creation and investment in the economy of North Carolina.
The amount of the grant is based on a percentage of the personal income tax withholdings associated with the new jobs. The amount of a JDIG award is calculated by weighing a number of factors to determine its potential value, including the location of the project, the county tier designation, the number of net new jobs, the wages of the jobs compared to the county average wage, the level of investment and whether the industry is one of the state's targeted industry sectors.
Grant funds are disbursed annually, for up to 12 years, to approved companies following the satisfaction of performance criteria set out in grant agreements. For projects located in a Tier 1 county, 100% of the annual grant is paid to the company. For projects located in a Tier 2 county, 90% of the annual grant is paid to the company, and 10% is transferred to the Utility Account, a state program to fund infrastructure projects in Tier 1 and Tier 2 counties. For projects located in a Tier 3 county, 75% of the annual grant is paid to the company, and 25% is transferred into the Utility Account.
JDIG has a High-Yield Project (HYP) provision for any company that creates 1,750 jobs and invests $500 million, which can provide a grant worth up to 90% of personal income withholdings for up to 20 years. JDIG also has a Transformative Project provision for any company that creates 3,000 jobs and invests $1 billion, which can provide a grant worth up to 90% if personal income withholdings for up to 30 years.
Eligible Recipients Detail:
The Job Development Investment Grant (JDIG) provides cash grants directly to a company, when the company creates jobs and invests in the state.
General Infrastructure (Attached to Job Creation); Last Mile Connectivity; Building Connectivity; Broadband Enabled Devices (General); Broadband-Technologies Workforce Training
Eligible Purpose Detail:
There are no restrictions on the use of JDIG funds. The company can use JDIG funds for any purpose.
Other Eligibility Criteria:
The project must be competitive with locations outside North Carolina and remain competitive until the grant is formally awarded. The project results in a net increase in the company’s employment in North Carolina. JDIG cannot be used to incent job retention. The project must meet the county average wage requirement.