No Legislative Surprises in Community and Economic Development as General Assembly Adjourns

<p></p> <p>Tyler Mulligan is a School of Government faculty member. </p> <p>Following the 2010 session of the North Carolina General Assembly, local governments will see an essentially unchanged statutory landscape for community and economic development. Some of the highlights are discussed below.</p> <p>What’s the Same</p> <p>North Carolina’s economic development incentive framework remains virtually unchanged. The General Assembly ratified several bills related to economic development incentives, all of which have been signed or are expected to be signed by the Governor. Two are of interest to local governments generally. The first, H 1973, extends the sunset for the controversial Article 3J tax credits, which were set to expire at the end of the year. Article 3J provides businesses with state income tax credits for capital investment and job creation. Credit amounts are larger in distressed “Tier One” counties (for an explanation of the tier system, click here) in hopes of encouraging businesses to locate in those counties. A 2009 report from the UNC Center for Competitive Economies (executive summary found here) questioned the effectiveness of the credit, but Tier One counties maintain that the credits are an integral part of their incentive toolbox. The second item of general interest is found in S 1215, which provides local governments with reports of the revenue they have foregone as a result of sales tax exemptions granted to certain businesses (such as internet datacenters and motorsports teams). Reports are to be furnished only upon formal request by a local government. This new report might come in handy, because the General Assembly also enacted a [...]</p>