wo Ohio businessmen, driven by the idea of manned flight, came to North Carolina in 1903 to find success. Since the Wright Brothers made North Carolina "First in Flight," thousands of national and international firms have also found success within the state's borders.
      Equipped with new, flexible incentives, a well-skilled workforce and one of the nation's lowest corporate tax costs, North Carolina continues to take flight as a national leader in industries ranging from aerospace and automotive to nanotechnolgy and semiconductors.
      Since developing its first incentive tool in 1996, North Carolina has honed several economic growth options that allow companies to benefit from the jobs they create and investment they make. The One North Carolina Fund provides grants to companies considering a competitive relocation or expansion in the state. Since May 2001, more than $15 million in One North Carolina grants have been awarded to 53 companies, creating 12,000 new jobs.
      These grants are paid out in quarterly installments as the company fulfills its hiring goals. At the request of Gov. Mike Easley, the N.C. House of Representatives recently passed a bill appropriating $20 million into the One North Carolina Fund. The bill is currently awaiting action in the state Senate.
      In May 2003, North Carolina awarded its first Job Development Investment Grant (JDIG), which returns a portion of employees' state personal withholding tax to a company. In the 13 months since, the state has provided 14 grants to companies bringing in more than 5,300 jobs and $602 million in investment. These grants are offered to high-impact projects that would not locate in North Carolina without this incentive.
      The JDIG recipients cover a broad range of industries including ZF Lemforder Corporation, an automotive component manufacturing company; Goodrich Corporation, a global aerospace and defense system supplier; and most recently, Harris Microwave Communications Division, which is relocating its corporate headquarters from Silicon Valley. JDIG has also been responsible for the relocation of three other headquarters to North Carolina -- General Dynamics Armament and Technical Products, R.H. Donnelly Corporation and GE Nuclear Energy.
      The JDIG program was cited by Site Selection magazine as one of the reasons North Carolina was named the nation's number one business climate for the third year in a row.
      Merck & Co., Inc., a global research-driven pharmaceutical company, recently announced its decision to build a $300-million vaccine manufacturing facility in North Carolina. North Carolina was in fierce competition for this project and, under the leadership of Gov. Easley, developed yet another incentive tool, the Site Infrastructure Development Program (SIDP), during a one-day session of its General Assembly in December 2003.
      The SIDP can provide grants or loans to assist with site acquisition and infrastructure development for companies investing at least $100 million and hiring at least 100 workers.
      In addition to the newer incentive programs, North Carolina continues to offer tax credits for eligible companies that create jobs, invest in machinery and equipment, train their employees and undertake research and development activities. The William S. Lee Quality Jobs and Expansion Act, passed in 1996, was established to assist companies with modernization efforts and to help recruit and retain good jobs within the state. The Lee Act has proven instrumental in helping existing companies, as well as in drawing businesses to the state's rural areas. Tax credits are greater for those companies that locate in North Carolina's most economically distressed areas.
      Since 1958, North Carolina has been an innovator and leader in community colleges, especially in industry training programs. The state's 59-campus community college system is within 30 minutes of 99 percent of the state's population. The N.C. Community College System offers training in a variety of industries from auto parts and electronics manufacturing to careers in biotechnology and data processing. The system has emerged as the third largest in the nation and is recognized as a national leader for its support of economic workforce development and training.
      Through the customized training program, administered by the N.C. Community College System, companies creating 12 or more jobs in a year may receive free, customized training programs for new employees.
      These aggressive incentive programs, the low cost of doing business and North Carolina's continued commitment to education and infrastructure continue to draw and keep companies in the Tar Heel State. Nationally, North Carolina ranks fourth lowest in business share of total state and local taxes, third lowest in business taxes as a percentage of capital income, and second lowest in business taxes as a percentage of private sector economic activity. North Carolina continues to soar as a better place to do business.