Some Preliminary Research on NC Tax Incentives for the film industry

1. According to NCfilm.com's website, "In 2010, Governor Bev Perdue signed into law House Bill 1973 and House Bill 713 that creates the following changes to the North Carolina Film Refundable Tax Credit:
HB 1973:

• Creates a single, easy to use 25% film refundable tax credit.
• Eliminates the 15% and Alternative Film credit.
• Increases per project cap to $20 million (was $7.5 million)
• Defines, employee fringe contributions, including health, pension and welfare contributions as qualifying expenses.
• Defines per diems, stipends, and living expenses as qualifying expenses.

HB 713:

• Eliminates the 6.9% corporate income tax on the tax credit taken by a production company. This allows the production company to realize a full 25% of qualifying expenses.

In 2012, Governor Bev Perdue signed into law Senate Bill 847 that changed the following to the North Carolina Film Refundable Tax Credit:
SB 847:

• Extends the sunset date to January 1, 2015"

2. According to Variety.com, "North Carolina’s 25% production tax incentive is due to expire on Jan. 1, 2015, but a news release from the state’s Republican governor, Pat McCrory, has revived hopes among advocates of the credits that the program will be renewed in the coming year.
With more than 60 productions registered by the North Carolina Film Office in 2013, and a record high of 5,700 production days, McCrory’s office said that the activity generated $254 million in spending and created more than 4,000 jobs for crew members.
“In addition to our state’s beauty, we’ve developed the workforce and artists that make North Carolina an ideal place to produce quality projects efficiently,” McCrory said.
North Carolina Film Office director Aaron Syrett said that the past three years “have produced unheralded numbers in direct in-state spending and job opportunities.” McCrory is in staunch support of the film industry in NC and will hopefully advocate for the continuation of NC film tax incentives.

3. According to WWAY TV 3, New Hanover County could see an estimated loss of more than $10 million in tax revenue if the state's film incentive expires at the end of 2014, according to initial findings of a study released Monday. The study, commissioned in September by the Wilmington Regional Film Commission with the assistance of other state entities, is being conducted by researchers at N.C. State University and looks at the financial impact of the film industry in the state. The current film incentive, which has a "sunset" expiration date at the end of 2014, gives qualifying productions a 25 percent refundable tax credit on money spent on certain services in the state."

That's a lot to take in, but it shows that this is an issue that is being taken into serious consideration by local and state government. We're off to a great start here, and I'm eager to discover more about how legislation and business plays a role in the NC film industry.