Moviemakers will get a 25 percent rebate on many of their production expenses in North Carolina under a bill signed into law by Gov. Beverly Perdue Thursday.
The bill, which increases the existing 15 percent rebate, was described as critical to cultivating the state's film industry, which includes a Screen Gems studio in Wilmington. Various states have engaged in something of a bidding war as they fatten their handouts to Hollywood. Georgia, which recently snatched a Miley Cyrus movie from North Carolina, raised its rebate to 20 percent.
"This is a business," Perdue said during a signing ceremony at the capitol. "They go to where the money is, where they save the money."
A study of film incentives commissioned by North Carolina's film office shows the incentives lose money in their first two years, but state officials say those are conservative estimates that don't consider indirect spending that the films generate.
Under the rebate, a film maker totals up what they spent on salaries, hotel rooms, renting land and buildings, supplies, food and assorted other expenses. The following year, they submit those totals to the state and get a rebate worth 25 percent.
As the Senate readied to end their session and leave Raleigh on Friday, they worked late into Thursday night passing a flurry of bills. A few notable bills that received the chamber's approval:
HB 713: Increases the tax credit for movie production companies that some say will cost the state money. The bill resembles a similar tax credit that was winding its way through the legislature earlier this session. The bill goes back to the House for final approval.
HB 1261: Makes it a criminal offense to engage in "cyber bullying," which the act defines as intimidating or tormenting minors online by following them into chat rooms, repeatedly contacting them, posting pictures without their consent or engaging in a number of other actions. It now goes back to the House for concurrence.
SB 293: Originally would have allowed deaf citizens to serve on juries to comply with the Americans with Disabilities Act, but the House removed that provision of the bill. The version that passed the Senate tonight only requires that the register of deeds store an electronic copy of the juror list. It now goes to the governor's desk.
HB 274: Makes about a dozen technical changes to the General Statutes to clarify wording. A notable change: the law prohibiting blue lights on vehicles other than police cars would not apply to non-functional lights. So fire up that replica ghost-busting Ectomobile. Seriously. A replica ghost-busting vehicle was the reason for this change. The Senate ain't 'fraid of no ghosts.
North Carolina lawmakers are pushing through a hefty increase in the tax credit for movie makers even though a study commissioned by the state film office says the state would lose money on the deal for at least two years.
The experience other states have had with film credits suggest such an incentive might not pay for itself, leading some Republicans to question giving such a tax break as the state's cash crunch puts teachers in the unemployment line.
But representatives of the film industry and North Carolina's film office say the payoff will be down the road. They argue that the tax credit will lure jobs to the state.
As a bonus, Screen Gems Studios, which already operates studios in Wilmington, has pledged to build a production studio in Charlotte if the state increases the handout to Hollywood.
The Senate on Wednesday gave final approval to legislation that would raise the film tax credit from 15 percent to 25 percent of qualifying expenditures in the state.
The bill now goes to the House. (N&O)
The Senate approved a bill Tuesday that boosts the tax credits given to film companies that make their movies in North Carolina.
The legislation, aimed at luring more of Hollywood's business, gives the filmmakers a 25 percent tax credit on qualifying expenditures they make in the state, up from 15 percent.
Supporters emphasized that the state doesn't pay anything unless the movie companies create jobs and spend money, while critics questioned handouts for Hollywood at a time that state services and potentially jobs are being cut.
Some recent Senate bills of note:
S.B. 943: Expand Film Credit, Sen. Linda Garrou
S.B. 973: Create Dept. of Military and Veterans Affairs, Sen. Tony Rand
S.B. 992: Authorize Mayors to Solemnize Marriage, Sen. Don Davis
S.B. 994: Establish State Athletics Commission, Sen. Dan Clodfelter
S.B. 1006: Withholding on Contractors Identified by ITIN, Sen. David Hoyle
S.B. 1014: Lottery Trust Fund, Sen. Doug Berger
S.B. 1018: Reduce Plastic Bag Use, Sen. Josh Stein