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North Carolina Workforce Training Tax Credits: What Employers Can Claim

North Carolina has no current state tax credit for hiring or training workers that could be confirmed. The Article 3J jobs credit was repealed for activity on or after January 1, 2014. The federal Work Opportunity Tax Credit lapsed for people who start work after December 31, 2025, unless Congress renews it. The closest state incentive is the Job Development Investment Grant, a negotiated cash grant for large projects, not a tax credit.

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  • State pre-filled: NC
  • Program type pre-filled: tax_credit
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HOW IT WORKS

Four steps, in this order.

  1. 1

    Check the IRS WOTC page for any renewal before you screen hires

  2. 2

    If Congress renews WOTC, file Form 8850 within 28 days of the start date

  3. 3

    For a large relocation or expansion, talk to NC Commerce before you commit

  4. 4

    For training money, use your local board's OJT or incumbent worker programs

3 VERIFIED PROGRAMS

Where the North Carolina money comes from.

Run by IRS and U.S. DOL (WOTC), NC Department of Revenue (credits), NC Commerce (JDIG). Every figure is from an official page, linked on each card.

Work Opportunity Tax Credit (federal, WOTC)

Lapsed for 2026 hires
LAPSED, AWAITING CONGRESS
WHAT YOU GET

Normally 40% of up to $6,000 of first-year wages for hires from certified target groups. NC Commerce's WOTC page still advertises $1,200 to $9,600 per employee but does not say the credit lapsed.

HOW MUCH

Not available for people who begin work after December 31, 2025, unless Congress acts. IRS page last reviewed July 20, 2026.

WHO RECEIVES THE MONEY

The employer, as a federal income tax credit.

WHO QUALIFIES
  • Hire certified by the state as a member of a target group
  • Minimum hours worked in the first year
  • Form 8850 filed within 28 days of the start date
Before you start: Yes. Screen at or before the offer and file within 28 days.
HOW TO APPLY
  1. 1Complete IRS Form 8850 and ETA Form 9061
  2. 2Submit through the NC WOTC online system within 28 days of the start date
  3. 3File Form 5884 with your return if certified and the credit is in force

Deadlines and windows: 28 days from the employee's start date. The credit is not in force for starts after December 31, 2025.

SOURCE: IRS.GOV

Article 3J credit for creating jobs (North Carolina)

Repealed, no new credits
CLOSED
WHAT YOU GET

Nothing new. The credit ended for business activity on or after January 1, 2014. Only companies that qualified earlier may still take remaining installments.

HOW MUCH

Not available for new jobs.

WHO RECEIVES THE MONEY

The employer, as a state income tax credit, taken in installments.

WHO QUALIFIES
  • Not open to new claims
Before you start: Not applicable.
HOW TO APPLY
  1. 1No application. Companies with older credits follow NC Department of Revenue guidance on installments and carryforwards

Deadlines and windows: Repealed for activity on or after January 1, 2014.

SOURCE: NCLEG.GOV

Job Development Investment Grant (JDIG)

Negotiated cash grant, large projects
COMPETITIVE, BY NEGOTIATION
WHAT YOU GET

A share of the new state income tax withholding from the jobs created, paid over time, up to 12 years for standard projects after yearly performance reviews.

HOW MUCH

Formula based. Standard terms run up to 12 years. Up to 90% of new withholding for high-yield projects (1,750 jobs and $500 million, up to 20 years) and transformative projects (3,000 jobs and $1 billion, up to 30 years).

WHO RECEIVES THE MONEY

The company, as an annual cash grant. It is a grant, not a tax credit.

WHO QUALIFIES
  • Net new jobs and investment in North Carolina
  • Awarded only in competitive recruitment or retention situations
  • Meets strict performance targets
Before you start: Yes. The Economic Investment Committee approves the grant before the project.
HOW TO APPLY
  1. 1Contact NC Commerce or EDPNC before announcing or committing to a project
  2. 2The Economic Investment Committee reviews the application

Deadlines and windows: The Committee's authority to award new grants expires January 1, 2030.

SOURCE: COMMERCE.NC.GOV
AVOID THESE

What gets North Carolina Tax Credit claims denied.

  • Claiming WOTC for someone who starts after December 31, 2025.
    SOURCE: IRS.GOV
  • Missing the 28 day filing window for WOTC certification, if the credit is renewed.
    SOURCE: COMMERCE.NC.GOV
  • Applying for JDIG after announcing or starting the project. Grants are only for competitive situations.
    SOURCE: COMMERCE.NC.GOV
STRAIGHT ANSWERS

North Carolina Tax Credit questions.

Is the Work Opportunity Tax Credit available in 2026?

Not for people who start work after December 31, 2025, unless Congress renews it. Check the IRS page for any change.

SOURCE: IRS.GOV
Does North Carolina have its own hiring tax credit?

None could be confirmed. The Article 3J jobs credit was repealed for activity on or after January 1, 2014.

SOURCE: NCLEG.GOV
Can I still claim an old Article 3J credit?

Only if you qualified before the repeal. You may keep taking remaining installments and carryforwards while you meet the statute's conditions.

SOURCE: NCDOR.GOV
What about JDIG?

It is a cash grant for large, competitive projects, not a credit for ordinary hires. The Committee can award new grants until January 1, 2030.

SOURCE: NCLEG.GOV

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on . Where a board publishes nothing, we say so instead of guessing. Programs and funding change often; confirm with the program before you commit. Written by Jason Meehl, founder of Reimbursa. Found an error? Email hello@reimbursa.com.

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