Press Release

As she talked with western North Carolina economic leaders today, Gov. Bev Perdue stressed that protecting and creating jobs and growing the economy will be a top priority in the budget she plans to present on Tuesday.

“We must continue to move North Carolina forward even in these challenging times. In my budget I will make targeted investments to create jobs and prepare North Carolina to be an economic leader as our nation recovers,” said Gov. Perdue.  “Helping small businesses compete more effectively, developing our workforce, and fostering innovation and entrepreneurship are all vital to a strong business climate.”

During an economic roundtable in Asheville today, Gov. Perdue announced several of the economic development initiatives that will be included in her budget:

• Small Business Tax Relief:  Businesses with profits less than $100,000 will be able to exempt the first $25,000 of net income from state tax.  Businesses with profits between $100,000 and $200,000 will exempt the first $15,000.


• Expand Earned Income Tax Credit:  Beginning in the next calendar year, the credit would be increased from 5% to 6.5%.


• Jobs Now initiative:  Gov. Perdue’s budget will invest more than $17 million in community college and vocational education courses and programs focused on job training and preparing students for new 21st century careers. 


• Main Street Solutions program: Invest $7 million in the Main Street Solutions program to expand and transform this initiative into a more comprehensive economic development tool to drive regional job creation in small and medium-sized towns and cities.


• One NC Small Business Fund: $2 million for small companies to match federal innovation grants.


• Founder’s Credit: Establish a Founder’s Credit, which will exclude initial stock investments in certain North Carolina start-up companies from capital gains.  This will encourage innovation and entrepreneurship.


• Green Business Fund: $5 million for the Green Business Fund to encourage the growth of North Carolina businesses as we seek to use fuel and other natural resources more wisely and effectively.  


• Defense and Aerospace:  $3 million investment for expanding North Carolina’s defense and aerospace industry to create jobs.


• Destination NC:  $1.5 million to brand North Carolina as a business and tourism destination.


• Water/Sewer Infrastructure: More than $47 million in state funds to maximize federal resources for water and sewer and other similar infrastructure projects that support economic growth.

Additional measures will be announced with her full budget next week.