Related Tax Incentives Article 3J Tax Credits Article 3J Tax Credits offer several types of tax credits to eligible taxpayers that undertake qualifying initiatives. These credits may be used to offset up to 50% of the taxpayer’s state income and/or franchise tax liability, and unused credits may be carried forward for up to five years. Note: Article 3J Tax Credits should not be confused with William S. Lee Tax Credits. Article 3J is not a revision of the Lee Act; it replaces it. In general, William S. Lee Credits are repealed for business activities that occur on or after January 1, 2007 and Article 3J Credits take effect for taxable years beginning on or after January 1, 2007. Article 3J offers credits for: Creating jobs – Companies who meet a minimum threshold of new fulltime jobs created during the taxable year may claim a credit. Investing in business property – Companies can claim a credit based on a percentage of the cost of capitalized tangible personal property that is placed in service during the taxable year. Investment in real property – Companies located in a Tier One County that invest at least $10 million in real property within a three-year period and create at least 200 new jobs within two years are allowed a credit equal to 30% of the eligible investment. To learn more, click here to visit the program's section on the North Carolina Department of Commerce's web site.