WILMINGTON, NC (WECT) - Governor Pat McCrory's proposed budget for 2014-15 would make some significant changes to the state's Film Incentive tax credit, which many have credited with luring in major motion picture productions and network television series.
McCrory's budget plan proposes to cap the tax credit any movie production could recoup at $6 million, compared to the current incentive plan that has a cap of $20 million per project. The current minimum any production must spend in North Carolina to qualify for the tax credit is $250,000. McCrory's proposal increases the minimum to $1 million.
According to the Motion Picture Association of America, Iron Man 3 received $20 million in support through state tax incentives when it filmed in Wilmington in 2012. The MPAA estimates the production spent $179.8 million in the state in wages and services.
To see the specifics of the Governor's film incentives proposal (which begins on page 70), click here.
You can compare to the specifics of the current film incentives plan by clicking here.
Rep. Susi Hamilton (D-New Hanover) has proposed a bill to extend the current film incentives, without the sunset provision that takes effect at the end of this year. To see that bill, click here: http://bit.ly/1j5ExvN.
About the proposed changes, Josh Ellis, the Governor's Communications Director, wrote the following statement:
The governor's budget revises the state's film strategy in order to encourage long-term capital investments versus short-term projects with short-term returns. The budget reforms the film credit program by implementing a more cost-effective approach to encourage investment in the film industry in North Carolina. Under this proposal, the production company would receive a refund on all state taxes paid by the company, including income taxes paid by film employees. It would give local governments the option to rebate local taxes in the same manner. A new credit for investment in production and post-production facilities is also proposed to encourage capital investment. Based on last year's level of activity, the state tax rebate program would cost about $10 million annually.