Urban Progress Zone

This Urban Progress Zone (UPZ) program was created to attract new companies and encourage existing companies to add jobs and investment to the more distressed areas within the state. The program provides NC State Tax Credits to qualifying businesses including: 

• Up to a $3,750 state income tax credit for each new job created, with a minimum of 5 jobs created during the taxable year.
• A 7% state income tax credit for Business Property investment.

To qualify for UPZ credits, the following eligibility requirements must be met:

1. The primary activity at the business establishment must be an eligible type of business, which includes:
• aircraft maintenance and repair;
• air courier services hub;
• company head-quarters that creates at least 75 new headquarter jobs;
• customer service call centers; 
• electronic shopping and mail order houses;
• information technology and services;
• manufacturing;
• motorsports facility;
• motorsports racing team;
• research and development;
• warehousing; and
• wholesale trade.
2. The average wage of all full-time workers employed by the taxpayer at the establishment during the taxable year must meet or exceed the applicable wage standard of the county in which the establishment is located.
3. The taxpayer must offer qualifying health insurance for all full-time positions at the establishment and pay at least fifty percent (50%) of employee premiums.
4. The taxpayer must not have received any significant environmental violations with the North Carolina Department of Environment and Natural Resources within the prior five years.
5. The taxpayer must not have received any “willful” or “failure to abate” serious OSHA violations at the establishment within the prior three years.
6. The taxpayer may not have overdue taxes.

For additional information contact:

 Urban Progress Zone Map [pdf]