Aerospace company Ontic Engineering and Manufacturing Inc will receive $1.3 million in tax incentives to expand their facility in Granville County.
The company plans to create 126 jobs and invest $2.7 million in Butner, N.C, Gov. Roy Cooper announced.
“Ontic Engineering and Manufacturing’s decision is a confirmation to our great quality of life, excellent business climate, and strong manufacturing workforce,” Cooper said in a statement.
Tax incentives are issued to some businesses that plan to increase jobs and grow the local economy. Critics of the incentives argue that it is a way for government to pick winners and losers in the private sector. Critics also contend that such incentives are a waste of taxpayer money because companies generally will expand without them. Improving the state's overall tax and business climate is a fairer way to grow jobs, critics say.
Ontic’s incentive for the project comes from the Job Development Investment Grant approved by the state’s Economic Investment Committee. The $1.3 million tax credit will be issued to the company over 12 years as long as Ontic stays in the state and earns tax revenue. The project iwill grow the state’s economy by $413 million, the Cooper administration estimates.
The average wage for the new positions could reach up to $55,149, according Ontic. The current average annual wage in Granville County is $40,932. The unemployment rate in the county is 3.8 percent, which is below the unemployment rate in the state. The statewide unemployment rate is 4.3 percent.
“We continue to be impressed with [the] abilities and performance of our team here in Butner and look forward to aggressively growing our business here with additional investments in people, factory infrastructure, and intellectual property,” Gareth Hall, president and managing director of Ontic Engineering and Manufacturing, said in a statement.
North Carolina has the largest manufacturing workforce in the Southeast and ninth largest in the nation, officials say. Manufacturing accounts for 19 percent of North Carolina’s economic output at $104.9 billion.