Under Senate Bill 842, the updated budget proposal has been released. The Film incentives begins on the bottom of page 70.
It begins with:
REFORM PRODUCTION TAX CREDIT WITH A NEW TAX CREDIT PROPORTIONAL TO TAXES PAID BY PRODUCTION COMPANIES ON QUALIFYING EXPENDITURES SECTION 12.8.(a) Chapter 105 of the General Statutes is amended by adding a new Article to read: “Article 47. “Motion Picture Production Tax Credit.”
There is a lot to sort out as it is in legalese and nothing is set in stone at this time. Remember that as you read. Let’s stay strong and keep up the positive push to keep the film incentives, end the sunset and keep productions coming! READ NEW BUDGET PROPOSAL NOW
So, far I can tell you, in the proposed budget, productions need to spend at least one million dollars to qualify (it’s at $250,000 now)and the max they can receive back is $6,000,000 (it’s at $20M now). They cannot exceed the amount of taxes a production pays in North Carolina.
What this seems to be saying is nothing flat and cut and dry like as it stands now we have like how we now have a 25% rebate and Georgia has a 30% tax credit. The budget is based on categories. 4% here, 5% there and waiving certain taxes such as the gas tax. It also seems to put the pressure on the local counties, rather than the state.
WWAY reports that the new proposal is offering:
-5.3 percent of money spent on payroll
-4 percent of money spent on goods and services from non North Carolina-based companies
-5 percent of money spent on goods and serves from North Carolina-based companies
They are also leaving a sunset in place in which the film incentives would expire, yet again, on January 1, 2018. More to come.
Kevin Wuzzardo at WWAY has more on the story. READ NOW
FYI: These are the folks in the NC Senate that are sponsoring this proposal. Remember their names too: Harry Brown(Jones, Onslow); Kathy Harrington(Gaston); Neal Hunt(Wake); (Primary) Brent Jackson(Duplin, Johnston, Sampson);
Meanwhile, the North Carolina Production Alliance responded to the budget proposal with a clear, cool head. “We recognize that the General Assembly now has a role in responding and crafting the final legislation. We look forward to collaborating with all parties to keep our industry competitive at the Tier 1 level.”
So, remember, our legislature writes the final legislation. We are early in the process. All we can do is keep calm and keep filming NC.
Governor’s budget bill proposes big changes for NC film incentives [WWAY]
McCrory’s budget proposal makes big changes to film incentives [Star News]
Governor’s proposed budget includes major changes to film incentives program [WECT]