Boating company Pamlico Yachtworks plans to create more than 200 jobs in North Carolina with a promise of $1.7 million in tax incentives.
Pamlico will launch a $12 million manufacturing facility in Washington, North Carolina, Gov. Roy Cooper announced Tuesday.
“Pamlico Yachtworks is the newest addition to North Carolina’s manufacturing reputation and tradition,” Cooper said. “I support the people of Beaufort County, and I know they are prepared to enhance this growing business with their expertise and hard work.”
The company will take advantage of the state’s Job Development Investment Grant, which helps with the setup costs of establishing a business in the state.
The amount of the grant is based on the projected personal income tax withholdings from the new jobs. With the average salary of up to $45,637 annually, officials have determined that Pamlico will “grow the state’s economy” by $432 million over the next 12 years. The state will reimburse the company $1.7 million over the same time period as long as it meets the job creation and economic expectations.
Development grants are tax incentives that critics argue is a way for the 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.
However, state officials say North Carolina’s workforce has continued to attract companies.
“With the largest manufacturing workforce in the Southeast and a great business climate, manufacturers know North Carolina is a great place to do business,” state Commerce Secretary Anthony M. Copeland said.
Part of Washington is along the Tar River. Representatives for the area say the county has a thriving boating industry.
“This is a great day for Beaufort County,” Sen. Erica D. Smith said. “Our talented boat manufacturing workforce is ready to support their new operations for many years to come.”