As an attorney who has had the privilege of representing economic development organizations and job creators across North Carolina for over two decades, I have witnessed firsthand the transformative impact that private investment has on our communities. From revitalized downtowns to booming industrial parks, private capital has fueled the growth and prosperity of countless towns and cities throughout our great state.
That is why I am writing today to extend my sincere thanks to Sen. Thom Tillis for his steadfast leadership in preserving the carried interest provision in the federal tax code — a critical element that directly supports North Carolina’s economic competitiveness.
Too often, the conversation about carried interest is distorted by political rhetoric. In reality, carried interest is not some obscure tax loophole benefiting Wall Street executives. It is the mechanism that encourages long-term investment in projects that create real jobs, real opportunities and real economic advancement right here in communities like Fayetteville, Goldsboro and Concord. Private equity firms, venture capitalists and real estate partnerships use carried interest to reward years of patient, risk-taking investment that breathes life into our local economies.
Without the favorable treatment of carried interest, many of the projects that have transformed our state’s landscape simply would not have been possible. Economic developers often rely on partnerships with investors willing to accept uncertainty, deploy substantial resources and commit to projects that may take years to realize a return. Carried interest ensures that these investors are compensated fairly for taking on that risk. It incentivizes them to choose North Carolina over competing locations and fuels the development of small businesses, housing projects, infrastructure improvements and industrial expansion.
Tillis understands the real-world implications of tax policy better than most. He recognizes that weakening the incentive for long-term investment would not harm wealthy financiers — it would harm the construction worker waiting for his next job, the entrepreneur looking for startup funding and the rural community hoping to attract its first major employer in decades. North Carolina has enjoyed tremendous economic growth in part because leaders like Tillis have fought to maintain policies that attract investment and promote prosperity.
At a time when our state is competing not just with other states but with nations across the globe, preserving our ability to draw private capital is critical. Attacking carried interest may make for an easy talking point, but the reality is that undermining this policy would be a direct blow to the economic developers and local leaders who work every day to bring new jobs and industries to North Carolina.
Tillis has once again demonstrated his commitment to protecting the interests of North Carolinians by standing firm against misguided efforts to eliminate carried interest. On behalf of the many economic developers, business leaders and citizens whose futures are brighter because of sound, pro-investment policy, I offer my deepest gratitude.
The road to sustained economic success requires vision and leadership. Thanks to Tillis, North Carolina is better positioned to continue leading the nation in growth, innovation and opportunity.
Terry Hutchens is the founding partner of Hutchens Law in Fayetteville and a past member of the N.C. Board of Transportation and the N.C. Economic Development Commission.