News Article

Don Donadio Writes on Economic Development in North Carolina

January 9, 2012

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RALEIGH, N.C.—North Carolina is making positive strides in the area of economic development, but the state needs to make key changes in order to increase its competitiveness with its neighbors.

This was the message Womble Carlyle economic development attorney Don Donadio shared with readers of the Raleigh (N.C.) News & Observer. Donadio wrote a major op-ed article on economic development for the News & Observer’s Sunday, Jan. 8th edition.
 
In the article, Donadio notes that North Carolina’s neighboring states, such as South Carolina, Virginia and Georgia, offer lower tax rates; more favorable tax apportionment formulas (the formulas used to determine how much income tax a multistate business owes a particular state); and upfront economic cash grant programs that can be awarded to job-creating projects without special legislative approval.

In the N&O op-ed, Donadio recommends that North Carolina:
  • Create a mechanism to offer economic development cash grants where grant decisions can be made without special legislation.
  • Reduce the corporate income tax to fall in line with other Southeastern states.
  • Adopt a single sales factor corporate income tax apportionment formula.
 
Don Donadio advises clients in the area of state, county, and city economic development incentives such as tax credits, cash grants, and infrastructure improvements intended to induce the location of industrial and commercial projects. He has worked on some of the biggest economic development projects in recent North Carolina history, and remains at the forefront of efforts to bring new jobs and investments to the state. Donadio practices in Womble Carlyle’s Raleigh office.

This document is intended as an informational reminder and does not constitute legal advice. If you have any questions or would like to discuss a particular situation, please contact Womble Carlyle Sandridge & Rice, LLP. The purpose of this article is to provide general information about significant legal developments and should not be construed as legal advice on any specific facts and circumstances.