North Carolina State Tax Credits

More ways to save your hard-earned money from the tax man!

North Carolina has some great State Tax Credit for you.

Thank you so much for checking our resource out here for your state and congratulations for taking a proactive step to paying less in taxes. For your state, we have identified the tax credits that are currently being offered to help you pay less in state taxes.

We hope this resource is helpful to you, and if there is something you feel we have missed, please let us know!

It would be completely arrogant of us to think that we know all things and if we missed something we want to know so we can vet that and help you and our other friends in the entrepreneurial community pay less in taxes! And if you found this helpful, you should check out our DIY resources inside of our Tax Savings Communities (found at www.MakeTaxesFair.com/Our-Communities).

We're also ready to help you if you want to skip the line of the DIY process and get help directly from us. To learn more about how we help our clients check out www.MakeTaxesFair.com/Get-My-Roadmap
North Carolina

Work Opportunity Tax Credit (WOTC)

Overview:
The Work Opportunity Tax Credit (WOTC) is a federal income tax credit available to employers who hire individuals from specific target groups that face barriers to employment. Administered in North Carolina by the Division of Workforce Solutions, it helps reduce employer tax liability while promoting workforce inclusivity.

Who It’s For:
Employers hiring individuals from WOTC-designated target groups, including veterans, individuals on public assistance, long-term unemployed, ex-felons, and others facing significant employment challenges.

Four Key Highlights:

  1. Credit Range: $1,200 to $9,600 Per Employee
    – The exact amount depends on the employee’s target group, hours worked, and first-year wages.

  2. Ten Target Groups Qualify
    – Includes veterans, SNAP and TANF recipients, SSI recipients, ex-felons, long-term unemployed, and summer youth workers (specific criteria apply).

  3. Strict Filing Timeline
    – IRS Form 8850 and ETA Form 9061 must be submitted within 28 days of the employee’s start date for certification.

  4. Employer Flexibility & No Hire Limits
    – Employers make all hiring decisions, can claim for unlimited qualified hires, and benefit from simplified electronic filing.

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North Carolina Tax Credits for Growing Businesses (Article 3J)

Overview:
Article 3J offers targeted tax incentives to encourage job creation, business expansion, and investment in North Carolina. Businesses in qualified industries that meet specific employment, wage, and investment thresholds can benefit from multi-year tax credits based on job creation and property investment.

Who It’s For:
Businesses in industries such as manufacturing, R&D, IT, logistics, and customer service that are expanding or relocating to North Carolina and committed to job creation and capital investment.

Four Key Highlights:

  1. Tier-Based Job & Investment Thresholds
    – Businesses must create 5 to 15 new full-time jobs based on the county’s economic tier and invest $0–$2 million in business property (depending on tier).

  2. Significant Real Property Credit in Tier 1 Counties
    – Companies investing $10 million+ in real property and creating 200+ jobs can claim a 30% tax credit.

  3. Strict Compliance Requirements
    – Must meet wage standards, offer health insurance, and avoid recent environmental or OSHA violations.

  4. Long-Term Credit Benefits with Carryforward Options
    – Credits are earned over 4–7 years and can be carried forward up to 15–20 years depending on investment size.

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