RITZ Focus: 20% Tax Credits For Research

Tax credits for Research Expenditures are a major component of the Raleigh Innovation and Technology Zone plan. While companies can receive up to 3% in credits for independent expenditures, the real credits come from partnerships with North Carolina State University. Research done through the university receives a 20% credit with no spending threshold requirements. These credits are applied towards NC corporate income and franchise taxes.

Let's take a look deeper into how this program creates jobs and benefits Raleigh:

World Class Research Lab's: NCSU has long been the home to world class research facilities. In the midst of the current credit crunch, new companies are struggling to attain financing for research space. Our plan leverages the abundance of space already built and available to the people of North Carolina. This further leverages North Carolina taxpayer investments into university facilities.

Top Experts Leading Projects: Every project channeled through NCSU Centennial Campus will have internationally ranked PhD-level faculty leading their project.

Students Fuel Recruitment Chain: Students working on projects become primary candidates created downtown in the RITZ. The students we educate in Raleigh will stay in Raleigh to launch their careers and invest in our city.

It's Still About The Economy, Stupid: This program still comes back to real job creation. Take a look at this job creation example where a RITZ partner commits $1M in university-based research.

• (2) .5 FTE PhD-Level Researchers: $140k
• (3) FTE Masters-Level Researchers: $225k
• (5) .25 FTE Research Assistants (Students): $100k
• Total University-Based Employment: 10 Jobs, $465k annual salaries

Beyond this, the company will receive $200k in Tax Credits to re-invest in corporate-based jobs, or business capital growth.

So, with research tax credits available to RITZ partner companies, a $1M Research expenditure yields over $665k in job creation while still doing the research required.