North Carolina § 143B-437 - 56. Calculation of minimum and maximum grants; factors considered.

§ 143B-437. 56. Calculation of minimum and maximum grants; factors considered.

Subject to the provisions of subsections (a1) and (d) of this section, the amount of the grant awarded in each case shall be a percentage of the withholdings of eligible positions for a period of years. The percentage shall be no more than eighty percent (80%) for a development tier one area and no more than seventy-five percent (75%) for any other area. If the project will be located in more than one area designation, the location with the highest area designation determines the maximum percentage to be used. The percentage used to determine the amount of the grant shall be based on criteria developed by the Committee, in consultation with the Attorney General, after considering at least the following: The number of eligible positions to be created. The expected duration of those positions. The type of contribution the business can make to the long-term growth of the State's economy. The amount of other financial assistance the project will receive from the State or local governments. The total dollar investment the business is making in the project. Whether the project utilizes existing infrastructure and resources in the community. Whether the project is located in a development zone. The number of eligible positions that would be filled by residents of a development zone. The extent to which the project will mitigate unemployment in the State and locality. Notwithstanding the percentage specified by subsection (a) of this section, the amount of the grant awarded for a high-yield or transformative project shall be enhanced as provided in this subsection if the applicable conditions of this subsection are met. A business receiving an enhanced percentage of withholdings under this subsection that fails to maintain the minimum job creation requirement or meet all terms of the agreement will be disqualified from receiving the enhanced percentage and will have the applicable percentage set forth in subsection (a) of this section applied in the year in which the failure occurs and all remaining years of the grant term. The enhanced percentages are as follows: If the project is a high-yield project, the business has met the investment and job creation requirements, and, for three consecutive years, the business has met all terms of the agreement, the amount of the grant awarded shall be no more than one hundred percent (100%) of the withholdings of eligible positions for each year the business maintains the minimum job creation requirement and meets all terms of the agreement. Ninety percent (90%) of the annual grant approved for disbursement shall be payable to the business, and ten percent (10%) shall be payable to the Utility Account pursuant to G.S. 143B-437.61. If the project is a transformative project and the business has met the investment and job creation requirements and all terms of the agreement, the amount of the grant awarded shall be no more than one hundred percent (100%) of the withholdings of eligible and expansion positions for each year the business maintains the minimum job creation requirement and meets all terms of the agreement. Ninety percent (90%) of the annual grant approved for disbursement shall be payable to the business, and ten percent (10%) shall be payable to the Utility Account pursuant to G.S. 143B-437.61. The term of the grant shall not exceed the duration listed in this subsection. The first grant payment must be made within six years after the date on which the grant was awarded. For projects other than transformative projects, the number of years in the base period for which grant payments may be made shall not exceed five years. For transformative projects, the number of years in the base period for which grant payments may be made shall not exceed 10 years. Maximum durations are as follows: For high-yield projects in which the business receives the enhanced percentage pursuant to subsection (a1) of this section, 20 years starting with the first year a grant payment is made. If a business is disqualified from the enhanced percentage in one of the first 12 years, the term of the grant shall not exceed 12 years starting with the first year a grant payment is made. If a business is disqualified from receiving the enhanced percentage after the first 12 years, the term of the grant ends in the year the disqualification occurs. For transformative projects in which the business receives the enhanced percentage pursuant to subsection (a1) of this section, the base period plus 30 years starting with the first year a grant payment is made. If a business is disqualified from the enhanced percentage in one of the first 12 years, the term of the grant shall not exceed 12 years starting with the first year a grant payment is made. If a business is disqualified from receiving the enhanced percentage after the first 12 years, the term of the grant ends in the year the disqualification occurs. For all other projects, 12 years starting with the first year a grant payment is made. Except as provided in subsection (a1) of this section, the grant may be based only on eligible positions created during the base period. For any eligible position that is located in a development tier three area, seventy-five percent (75%) of the annual grant approved for disbursement shall be payable to the business, and twenty-five percent (25%) shall be payable to the Utility Account pursuant to G.S. 143B-437.61. For any eligible position that is located in a development tier two area, ninety percent (90%) of the annual grant approved for disbursement shall be payable to the business, and ten percent (10%) shall be payable to the Utility Account pursuant to G.S. 143B-437.61. A position is located in the development tier area that has been assigned to the county in which the project is located at the time the application is filed with the Committee. This subsection does not apply to a high-yield or transformative project in years in which the business receives the enhanced percentage pursuant to subsection (a1) of this section. A business that is receiving any other grant by operation of State law may not receive an amount as a grant pursuant to this Part that, when combined with any other grants, exceeds the applicable maximum percentage of the withholdings of the business, as provided in subsections (a) and (a1) of this section, unless the Committee makes an explicit finding that the additional grant is necessary to secure the project. For projects other than transformative projects, the amount of a grant associated with any specific eligible position, including any amount transferred to the Utility Account pursuant to G.S. 143B-437.61, may not exceed sixteen thousand dollars ($16,000) in any year. History (2002-172, s. 2.1(a); 2003-416, s. 2; 2003-435, 2nd Ex. Sess., s. 2.5; 2006-168, s. 1.5; 2006-252, s. 2.9(a), (b); 2006-264, s. 69(d); 2015-259, s. 1(e); 2015-264, s. 91(a); 2017-57, s. 15.15A(c); 2017-102, s. 24.1; 2018-5, s. 15.1(d); 2018-137, s. 1; 2019-177, s. 9(d).) Cross References. - For considerations when developing criteria for awarding grants and determining percentages upon which amounts of grants are based, see editor's notes under G.S. 143B-437.52. Editor's Note. - Session Laws 2006-252, s. 2.9(a), which amended subsection (d), was contingent on House Bill 2744, 2005 General Assembly [2006-168], not becoming law. It did become law. Session Laws 2006-264, s. 69(d) was repealed, pursuant to the terms of Session Laws 2006-264, s. 69(g), upon Session Laws 2006-168, which amended this section, becoming law. Session Laws 2015-259, s. 1(j), as amended by Session Laws 2015-264, s. 91(a), made the amendment by Session Laws 2015-259, s. 1(e), effective October 1, 2015, and applicable to awards made under Part 2G of Article 10 of Chapter 143B of the General Statutes on or after that date. Session Laws 2018-5, s. 15.1(g), made the amendment of this section by Session Laws 2018-5, s. 15.1(d), effective June 12, 2018, and applicable to grants awarded on or after that date. Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'" Session Laws 2018-5, s. 39.7, is a severability clause. Effect of Amendments. - Session Laws 2006-168, s. 1.5, effective July 27, 2006, added the last sentence in subsection (b); substituted "period" for "years, unless the Committee makes an explicit determination that the grant shall also be based on additional eligible positions created during the remainder of the term of the grant" at the end of subsection (c); rewrote subsection (d) which read: "The percentage established in the agreement shall be reduced by one-fourth for any eligible position that is located in an enterprise tier four or five area.", and inserted "including any amount transferred to the Utility Account pursuant to G.S. 143B-437.61" in the middle of subsection (f). Session Laws 2006-252, s. 2.9(b), effective January 1, 2007, in subsection (d), substituted "a development tier three area" for "an enterprise tier four or five area" in the first sentence, added the second sentence, and substituted "development tier" for "enterprise tier" in the last sentence. Session Laws 2015-259, s. 1(e), rewrote the introductory paragraph of subsection (a); added subsection (a1); rewrote subsection (b); in subsection (d), in the second sentence, substituted "ninety percent (90%)" for "eighty-five percent (85%)" and "ten percent (10%)" for "fifteen percent (15%)" and added the last sentence; and in subsection (e), substituted "the applicable maximum percentage" for "seventy-five percent (75%)" and inserted "as provided in subsections (a) and (a1) of this section." For effective date and applicability, see Editor's note. Session Laws 2017-57, s. 15.15A(c), effective July 1, 2017, added "or transformative" in subsection (a1); added the second sentence in the introductory text in subsection (b), added subdivision (b)(1a); and added "or transformative" to subsection (d). For applicability see Editor's note. Session Laws 2017-102, s. 24.1, effective July 12, 2017, substituted "Maximum durations are:" for "[Maximum durations are:]" in subsection (b). Session Laws 2018-5, s. 15.1(d), in subsection (a1), substituted "the amount of the grant awarded for a high-yield or transformative project shall be enhanced as provided in this subsection if the applicable conditions of this subsection are met" for "if" at the end of the first sentence, added the second sentence, designated the remaining existing provisions as subdivision (a1)(1), rewrote subdivision (a1)(1), and added subdivision (a1)(2); in subsection (b), in the third sentence, substituted "For projects other than transformative projects, the number" for "The number" and added the present fourth sentence; in the first sentence of subdivision (b)(1a), substituted "the base period plus 30 years" for "25 years"; in subsection (c), substituted "Except as provided in subsection (a1) of this section, the grant" for "The grant"; and, in subsection (f), substituted "For projects other than transformative projects, the amount" for "The amount." For effective date and applicability, see editor's note. Session Laws 2018-137, s. 1, effective December 3, 2018, in subdivision (f), substituted "sixteen thousand dollars ($16,000)" for "six thousand five hundred dollars ($6,500)" following "may not exceed." Session Laws 2019-177, s. 9(d), effective July 26, 2019, added "The enhanced percentages are as follows:" at the end of the introductory paragraph in subsection (a1).