Choose a topic for more information: Starting a business Finding the right location University assistance Finding money for your business What about incentives? Taxes and licenses What about incentives Thanks to the Tax Credits for Growing Businesses Act, enacted in 2006, companies in North Carolina can take advantage of a variety of incentives. The incentives are primarily in the form of tax credits for investment in machinery and equipment and real property, and for job creation. Based on a 3-Tier system, Watauga County is currently a Tier-2, recognizing the thriving local economy but still allowing for generous tax credits for job creation and machinery expenditures. The following information is meant solely as an outline of available tax credits. Particular conditions must be met to be eligible for the credits. A full explanation of the Act is available from the Watauga County Office of Economic Development. Also contact the office for information regarding any local incentives that might be available. The tax credits applicable for Watauga County are explained briefly below: Job Creation $5,000 in tax credits are available for every net new job created in a tax year (a minimum of 10 new jobs must be created). The credits must be taken in four equal installments, over a four year period, beginning the first tax year after the jobs are created. A minimum wage standard applies, and all jobs in a firm must pay, on average, the County wage standard established by the NC Department of Commerce to qualify. Machinery and Equipment Investment Firms are allowed a credit for the cost of machinery and equipment placed into service during a taxable year that exceeds the applicable $1,000,000 threshold for Watauga County. The amount of the credit is equal to 5% of the cost of the machinery and equipment in excess of the threshold.