JDIG COMPARISON:
Modification of
annual JDIG cap

Cap availability
periods
JDIG extension
Rebranding
Modification to
pre-requisite
findings
Modification to
minimum job
creation
requirement
Utility Account
diversion change
Clawback
modifications

Employment level
maintenance
comparison
modification
Create wage
standard

House Bill: H117
One-time modification – collapse 2013-15
fiscal biennium and 7/1/15 to 12/31/15 into
single period; increase cap from $30M to
$45M for that period
Calendar year
1/1/20
Yes – Job Growth Reimbursement
Opportunities – People Program
Yes – EIC must find for tier 3 projects that
the affected local governments have offered
appropriate incentives
Yes – increase tier 3 job creation minimum
from 20 to 50 created eligible positions

Yes – increase diversion to UA from tier 3
areas from 25% to 30%
Yes – convert discretionary recapture
provision to mandatory recapture provision
if business fails to maintain operations for
150% of grant term
Yes – changes the baseline from the year
immediately preceding base period to the
greater of employment at date of
application or award
No

Term modification

No

JDIG withholding
calculation
modification

No

1

Senate Bill: S338/5261
Persistent modification – increase
$15M cap to $30M in years when a
high-yield project2 (HYP) is awarded a
grant
Calendar quarter (unused portion rolls
forward until end of calendar year)
1/1/18
No
No

Yes – increase tier 1 from 10 to 25,
tier 2 from 20 to 50, tier 3 from 20 to
200, and major market community3
(MMC) from 20 to 250.
Yes – for HYP, diversion is eliminated
during augmented award periods
No

No

Yes – business must pay a percentage
of average weekly wage for all insured
private employers in the county equal
to 100% for tier 1, 110% for tier 2,
115% for tier 3, and 125% for MMC.
Yes – for HYP, limit is increased by 8
years during augmented award
periods
Yes – change from flat 75% to 80% for
tier 1, 70% for tier 2, 60% for tier 3,
50% for MMC, and 100% for HYP
during augmented award periods

For purposes of JDIG modifications, SB 338 and SB 526 are identical.
A high-yield project is one in which the business will invest at least $1B in private funds and create at least 2,500
new jobs.
3
A major market community is a county in which the average weekly wage for all insured private employers in the
county is one of the three highest in the State. Currently, the 3 major market communities are Wake,
Mecklenburg, and Durham Counties.
2

 Comparison of Tax Law Changes:
HB 117, SB 338, and SB 526
House Bill 117

Extend Sales Tax Refund for
Passenger Air Carriers
Sales Tax Exemption for
Datacenters

Single Sales Factor

Market Based Sourcing of
Services

Senate Bill 338
Sales Tax Changes
Extends the sunset four years,
N/A
to January 1, 2020
Creates an additional sales tax
N/A
exemption, similar but broader
in scope of equipment covered
by existing exemption
Apportionment Formula for Corporate Income and Franchise Tax
Expands who qualifies as a
Adopts SSF for 2016 taxable
qualified capital intensive
year and thereafter
corporation
N/A
N/A

Tax Rate

N/A

Tax Base

N/A

Tax Rate

N/A

Tax Base

N/A

Tax Rate

N/A

Corporate Income Tax
Reduces rate to 3% over two
years
N/A
Franchise Tax
N/A

N/A

Senate Bill 526
N/A
N/A

Phases-in SSF:
4X sales in 2016
SSF in 2017
Adopts market based sourcing

Reduces rate to 4% over two years
Eliminates various deductions
Reduces rate to $1.35/$1,000
Increases minimum tax to $200
Increases maximum tax on a
holding company to $150,000
Simplifies net worth tax base

Individual Income Tax
N/A

Reduces rate to 5.5% over two
years
Creates a zero tax bracket in lieu of
the standard deduction