RALEIGH – North Carolina’s Department of Commerce won’t talk specifically about recruiting a possible vehicle manufacturing assembly plant from Mahindra. But an executive says the state would be an “excellent choice” for such a plant. And North Carolina could offer tax incentives stretching as long as 30 years for the right deal.

“As you know, we talk to a wide variety of companies about everything North Carolina can offer, but we don’t discuss those conversations until a company makes public their site decision,” said David Rhoades, Communications Director for Commerce, when asked about the Mahindra announcement that it is considering several states for a new facility estimated to be worth as much as $1 billion and creating over time several thousand jobs.

“However, speaking generally, it’s well known that North Carolina and several of our local communities have been making the necessary preparations to attract an automotive assembly plant or other large-scale manufacturer,” he added.

Indian vehicle manufacturer puts NC on shortlist for new $1B plant, 2,000 jobs

“We offer what companies like that are looking for – roads, rails, and ports that are world-class; strong education and training systems, and local and state leaders that understand the needs of manufacturers. Combined with the robust automotive supply chain that’s already here, and our skilled manufacturing workforce, North Carolina remains an excellent choice for this industry.”

Mahindra says North Carolina is on the list of five states being considered. And in its announcement Thursday the India-based firm said it was looking for tax incentives.

Legislation passed in 2018 as North Carolina sought big projects such as Amazon HQ2 as well as an Apple campus and after losing out on other auto industry projects offers companies the chance to get rebates on personal income withholdings paid to employees for two decades or more.

Here’s how Commerce describes the Job Development Investment Grant, or JDIG:

  • “For companies that create 1,750 jobs and invest $500 million in North Carolina, their project is categorized as a High-Yield Project (HYP), allowing a JDIG grant reimbursing up to 90% of the new personal income withholdings, for a period up to 20 years.
  • “A JDIG Transformative Project award, for a company that creates 3,000 jobs and invests $1 billion in the state, can provide reimbursements up to 90% of the new personal income withholding for a period of up to 30 years.”

Local incentives such as site prep and reductions or waiting of property taxes could also be on the table.