State Development Zones

The North Carolina Department of Commerce has designated a State Development Zone within the City of Lexington. Certain businesses located in the zone are eligible to receive tax credits for investment in expansion or new facilities. This page provides basic information on the State Development Zone Program. The Lexington Area State Development Zone number is 050. The zone expires December 31, 2004.

What is the State Development Program?

The intent of the State Development Zone Program is to stimulate investment and job creation to improve conditions in high poverty areas of our cities. The NC Department of Commerce has designated 61 State Development Zones since approval of the program in July 1998.

Eligibility Requirements

Businesses qualify if they are in one of the following categories of the Standard Industrial Classification (SIC).

Category	SIC Code
Manufacturing/Processing	2011-3999
Warehousing	4221-4226
Air Courier Service	4513
Distribution	5012-5199
Data Processing	7371-7379
Central Admin. Office	Aux. Code 1

Other Terms

• Employer provides health insurance for workers (Minimum 50% of premium)
• Employer has no pending enforcement action or determination within past five years based on significant violation of DENR programs
• Employer has no outstanding OSHA citations
• Employer must pay 100% of the average weekly wage for the county.

Tax Credits for Qualifying Businesses

• $4000.00 per qualified job created in addition to Enterprise Tier incentives
• $1000.00 per employee for worker training
• 7% for machinery and equipment with no minimum

Contact Information

For further information on the State Development Zone Program contact:

Ms. Gail Brock
Division of Community Assistance
NC Department of Commerce
Phone: (919) 733-2853 x 262
Fax: (919) 733-5262
E-mail: gbrock@dca.commerce.state.nc.us

For further information on tax credit eligibility contact:

Commerce Finance Center.
North Carolina Department of Revenue
Phone: (919) 733-5297

For further information on the City of Lexington's State Development Zone contact:

Tammy Kepley
Director of Community Development
City of Lexington
Phone: (336) 248-3900
Fax: (336) 243-7766
E-mail: tammyk@lexingtonnc.net