Report: N.C. Handed Out $1.3B in Incentives
Posted December 11, 2007 3:27 p.m. EST
Updated December 12, 2007 5:32 a.m. EST
Raleigh, N.C. — North Carolina spent $1.3 billion on incentives to attract companies during the year ended June 30, according to a report released Tuesday.
A draft report by the Fiscal Research Division of the General Assembly showed that 85 percent of the incentives were through tax breaks. The report looks only at state incentives and doesn't include tax breaks, grants and other enticements offered by local governments.
The Fiscal Research Division reviewed incentives spending at the request of a special legislative committee charged with evaluating the effectiveness of the incentives and the way the state offers them. The panel was established after state leaders came under fire for awarding large companies like Dell and Google incentives to expand in North Carolina.
State business recruiters say the incentives are necessary to help lure companies to the state or to help companies expand their work force, adding more jobs.