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)