North Carolina Tax Policy Places State on Top of Business Climate Magazine | North Carolina

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(The Center Square) – North Carolina was ranked # 1 for its business climate by Site Selection magazine for the second year in a row.

Business-centric publication publishes annual report Business Climate Rankings every November. The magazine evaluated states equally on its criteria and expert survey.

North Carolina was tied for first place last year with Georgia, but the state was at the top of the list several years earlier. The magazine gave North Carolina the top ranking for its corporate tax rate.

“One of North Carolina’s competitive advantages over the past several years has been its corporate tax rate of 2.5% – the lowest of the 44 states that levy such a tax,” Site Selection wrote.

The state’s other benefits include its regulations, supply chain logistics, cost of doing business, economic incentives and workforce training programs, the magazine said.

Republicans in North Carolina took credit for the ranking, saying their pro-business policies such as the low tax rate and relaxed regulations have contributed to the state’s positive business climate.

“Low taxes, low spending, and reasonable regulations ushered in a decade of boom for North Carolina,” said Senator Todd Johnson, R-Union, who co-chairs the Senate Trade Committee. “When a formula works, we have to keep it going, and that’s what the Republicans in North Carolina intend to do.”

Republicans have held a majority in the General Assembly for the past decade, but parliamentary minority Robert Reives, D-Durham, said on Wednesday the state had a similar ranking on corporate tax when Democrats last led the Legislative Assembly in 2010.

“Corporate rankings are due to years of politics,” Reives said during the House debate.

Lending Tree ranked North Carolina as the best place in the country to start a small business last month, and CNBC ranked North Carolina No. 2 on its list of the best states for business.

The General Assembly this week adopted a biennial budget that lowers the franchise tax base for corporations and phase out corporate income tax over six years, starting in 2025. It also makes expenses paid with the paycheck protection program loans tax deductible, thus increasing the turnover. friendly atmosphere.