9 counties change tiers in 2010 economic development rankings

Alexander and McDowell counties have been designated as two of the state's 40 most economically distressed counties for 2010. The new county tier designations, released by the N.C. Department of Commerce on Nov. 30, determine a variety of state funding opportunities to assist in economic development.

Under the law governing what are commonly known as Article 3J tax credits, the state's 40 most distressed counties are designated Tier 1 counties. The middle 41 counties are designated as Tier 2, while the 19 most prosperous counties are placed in Tier 3. The rankings are based on an assessment of each county's unemployment rate, median household income, population growth, and assessed property value per capita.

In addition to Alexander and McDowell, Craven, Haywood and Lincoln counties (Tier 2) were moved down one tier for 2010. The counties of Onslow (Tier 3), Pender (Tier 3), Cumberland (Tier 2) and Wilson (Tier 2) all moved into a higher tier.

Potential benefits include:

• Tier 1 designees can offer a $12,500 tax credit per new job with a requirement to create at least five jobs, and a 7 percent tax credit for eligible business property expenditures.
• Tier 2 designees can offer a $5,000 tax credit per new job with a requirement to create at least 10 jobs, and a 5 percent tax credit for eligible business property expenditures of more than $1 million.
• Tier 3 designees can offer a $750 tax credit per new job with a requirement to create at least 15 jobs, and a 3.5 percent tax credit for eligible business property expenditures of more than $2 million.

Article 3J tax credits replaced the Article 3A "Bill Lee" tax credits in 2007.