Eight counties change economic development tiers

Chowan and Yancey counties have been designated as two of the state's 40 most economically distressed counties for 2012. The new county tier designations, released Nov. 30 by the N.C. Department of Commerce, determine a variety of state funding opportunities to assist in economic development.

Eight counties will change tier designations for 2012. Chowan and Yancey counties both moved from Tier 2 to Tier 1. Alexander and Gates moved from Tier 1 to Tier 2. Craven and Onslow counties shifted from Tier 3 to Tier 2, and Lincoln and Watauga counties moved from Tier 2 to Tier 3.

The Department of Commerce annually ranks the state's 100 counties based on economic well-being and assigns each a tier designation. The 40 most distressed counties are designated as Tier 1, the next 40 as Tier 2 and the 20 least distressed as 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. The tier system is incorporated into various state programs, including the Article 3J Tax Credits, to encourage economic activity in the less prosperous areas of the state.

Under the Article 3J program, potential benefits for job creation 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.