A new bill introduced in the state House would impact the film production tax credit in North Carolina
WILMINGTON, NC (WECT) – A bill filed Thursday in the state House is raising concerns about the future of North Carolina's film credit, which many credit with helping to lure productions such as Iron Man 3, Safe Haven and Revolution to the Wilmington area.
HB 994, co-sponsored by Rep. Rick Catlin (R-New Hanover) and Rep. Chris Millis (R-Pender), Rep. Paul Stam (R-Wake) and Rep. Paul Luebke (D-Durham), seeks to make the film production credit non-refundable. According to Millis' explanation, film productions would no longer receive a refund from the state for any income tax credit. Under the proposed bill, the production would instead be entitled to carry the surplus credit forward for the next five years, to use against any future tax liability.
"Individuals in the District and across this State deserve a government that is accountable with their tax dollars," Millis said in a statement. "HB 994 brings more accountability to our state government by reforming the ability for film productions to carry over their tax credits, instead of receiving a check cut directly from the coffers of hardworking taxpayers."
Catlin said he does not expect the bill to make it past committee, but he supports it in order to begin the conversation of reforming incentives altogether. He said companies should stay in North Carolina to spend the incentives they receive.
"If they don't stick around and work with us, they don't get them," he said.
Research on film incentives will continue, according to Catlin.
Johnny Griffin, Director of the Wilmington Regional Film Commission, says the bill came as a shock to him. Griffin says none of the bill's sponsors mentioned it to him before he was told of its introduction by our own Jon Evans. Griffin says the bill will do a lot of damage to film production in North Carolina, if it passes in its current form.
"This will basically offer an empty incentive," Griffin said. "Yes, we'd have a film incentive, but no one will be able to use it. Maybe you can find a couple local companies that could benefit from this, but it's more important to focus on the majority of production companies that do not have tax liability. They come down, spend and leave. Even though they are giving this incentive, they still are taxed through sales tax on things they purchase, and payroll tax for paying local workers."
Rep. Susi Hamilton (D-New Hanover) calls the bill a "jobs killer" for the film industry. "All this bill does is eliminate jobs," Hamilton said. "No incentives, no film industry. This bill kills jobs in North Carolina."
In a text message Thursday afternoon, Sen. Thom Goolsby (R-New Hanover) said he does not support the proposed legislation
House Bill 994 would make film incentive credits non refundable to production companies retroactively to January 1, 2013. That would impact productions shooting in the state right now, including the NBC series Revolution and Under the Dome, which will air on CBS later this year.
"Just the fact that this bill has been introduced, regardless of changes, is enough of a sign to production companies to possibly not come here," Griffin said.
"This is not a jobs killer," Millis said when told of the early reaction the bill has received. "This is not a debate of repeal at this time but of reform".
Thursday, December 12 2013 2:16 PM EST2013-12-12 19:16:27 GMT
WINSTON-SALEM, N.C. (AP) - A federal judge in Winston-Salem says there will be no trial on North Carolina's voting law changes until after the 2014 elections. U.S. District Judge Joi Peake said ThursdayMore >>
Groups hoping to overturn North Carolinas Voter ID law likely won't get the chance until after the 2014 elections. A judge ruled Thursday both sides need more time to prepare for the trial.More >>
Thursday, December 12 2013 7:54 AM EST2013-12-12 12:54:48 GMT
RALEIGH, N.C. (AP) - A North Carolina legislator has been arrested on felony tax charges. The N.C. Department of Revenue announced Wednesday that Rep. Deborah H. McManus, D-Chatham, faces three countsMore >>
A first-term lawmaker has resigned after her arrest on embezzlement charges. Deborah McManus resigned effective Wednesday from representing District 54 in the NC House, according to the General Assembly website.More >>
Tuesday, December 10 2013 2:44 PM EST2013-12-10 19:44:55 GMT
WASHINGTON, DC (WECT) – Two new polls of North Carolina voters show job approval numbers well below 50% for both President Barack Obama and Senator Kay Hagan. Both Public Policy Polling and High PointMore >>
Two new polls of North Carolina voters show approval ratings well below 50% for both President Barack Obama and Sen. Kay Hagan. One of the polls also shows potential challengers for Hagan's seat are facing uphill climbs in name recognition and voter preference.More >>
Friday, December 6 2013 1:52 PM EST2013-12-06 18:52:58 GMT
RALEIGH, N.C. (AP) - A lawsuit filed more than a decade ago against Attorney General Roy Cooper and his campaign for a television commercial aired during his first winning run for the job may finally goMore >>
A lawsuit dating back to 2000 against NC Attorney General Roy Cooper has received a trial date for spring of 2014.More >>
Thursday, December 5 2013 4:00 PM EST2013-12-05 21:00:12 GMT
WASHINGTON, DC (WECT) – The Senate Majority PAC group has launched a second ad campaign supporting Senator Kay Hagan in her bid for re-election. The 30-second ad on YouTube does not yet appear on theMore >>
The Senate Majority PAC has launched a new ad campaign, supporting Sen. Kay Hagan and criticizing the candidate many consider the front-runner to oppose her bid for re-election in 2014. Click on the link inside this story to see the ad.More >>
322 Shipyard Boulevard
Wilmington, NC 28412
Main Phone Number: (910) 791-8070
Newsroom: (910) 791-6681