BSH Appliances is walking away from a possible $1.56 million in state incentives.
The company, which makes upscale appliances at a factory in New Bern, has asked the state to terminate its participation in the state's job incentives grant program.
In making the request, the company said it had been unable to make its hiring targets because of the economic downturn and did not anticipate being able to do so, said Deborah Barnes, a spokeswoman for the N.C. Department of Commerce.
The appliance maker's request was one of several on the agenda this morning at a meeting of the state's Economic Investment Committee. The committee, which oversees state incentives, also approved a payment to Dex One in Cary and denied one to INC Research in Raleigh, Barnes said.
BSH is a subsidiary of German manufacturer Bosch. It had announced in 2006 that it would add more than 225 jobs over a five-year period and invest $11 million in its Craven County operations.
If it had created all the jobs called for and sustained them for 10 years, BSH would have received a maximum benefit of $1.56 million under the state's Job Development Investment Grant or JDIG.
The grant payment to Dex One, the Cary yellow pages publisher formerly known as R.H. Donnelley, follows the company's emergence from bankruptcy at the end of January.
Dex One needed to create 220 jobs, make capital investments of $2.5 million and pay an average annual wage goal of $50,000, to receive its maximum payout this year.
It over-achieved on all counts. The company created 268 jobs, invested $8.27 million and paid an average annual salary of $106,000. As a result, it received a grant payment of $450,000.
INC Research, on the other hand, didn't fare as well. The Raleigh company, which does clinical research for pharmaceutical companies, was just shy of its targets.
INC created 104 of a needed 171 jobs. The maximum amount it could have received this year was $96,903.
An IBM subsidiary in Charlotte, IMB Lender Business Process Services, also fell short, and will not receive a grant payment this year.
The JDIG program returns to companies a portion of the withholding tax paid by new employees. It is typically spread over 10 years, with companies having to meet yearly targets to receive a payment.
Barnes said that both INC and IMB Lender could receive future payments if they return to compliance.
Mary Cornatzer has worked at The News & Observer for more than 25 years, covering the local music industry, state movie industry and travel. She has been the paper's Business editor since 2000. Contact Mary at 919-829-4755 or 
