Will the Tarheel State's Lawmakers Extend the 25% Incentive Program?

     "The Tarheel State has seen a substantial growth in its economy over the past two years, due to the film industry.  Production companies have poured into the state to take advantage of the 25% state incentive.  This incentive allows production companies who “spend at least $250,000 in North Carolina, to be eligible to receive a refundable tax credit of 25% of in-state spending for labor, goods and services”.  “Former Governor Bev Purdue signed House Bill 1973 and House Bill 713 into law, which made changes to the tax credit.  She signed Senate Bill 847, which extended the sunset date until January 1, 2015”.  According to Investopedia.com, a sunset date means “an automatic repeal of the entire or sections of a law once a specific date is reached. Once the sunset provision date is reached, the pieces of legislation mentioned in the clause are rendered void”.  CBS’ Under the Dome, producer and unit production manager, Dale Williams said, "Whenever there is a sunset date, that in itself produces uncertainty for the studios.  Films and shows that are being planned 18 and 24 months out are not looking at North Carolina because they don't know what is going to happen 18 months from now”.  

     There are speculations in the air that North Carolina’s Film Industry could be “losing thousands of jobs and millions in economic investment if it doesn’t extend the state incentive program”.  Four days before North Carolina lawmaker recessed, Motion Picture Association of America’s Vice President for Government Affairs, Vans Stevenson, wrote a letter suggesting if the incentive program is not extended, North Carolina “will no longer be considered for major feature films.  Fox’s show Sleepy Hollow had planned to film in the state in 2014 and 2015, but may be required to move if the tax credit is not lengthen to three years. He also wrote in his letter that the Disney Company would not consider North Carolina for any more films. The MPAA is a trade association consisting of production companies such as Walt Disney Studios and Paramount Pictures”.

          “North Carolina has seen two years in a row of record breaking revenues from film productions.  Over $376 million was spent in 2012, and formed over 4,100 full-time crew jobs.  The movie Iron Man 3, and Showtime’s Homeland were produced here last year.  Aaron Syrett, Director of the NC Film Office said, 'Not only were we able to exceed our record-breaking numbers from 2011, but, we continue to grow throughout the state”.

     "The letter was forward to Sharon Decker, the Commerce Secretary, and copies were mailed to Gov. Pat McCrory, Senate Leader, Phil Berger, House Speaker, Thom Tillis and Tony Almeida, a jobs adviser to the governor”.  “The Commerce Secretary believes the incentive is a good program since it keeps the film industry ‘alive on a broader scale in North Carolina than if it were not in place.  She is in the process of finding other ways to fund the program”. 

     “Both of North Carolina’s state houses are Republican controlled, and the party disapproves of tax incentives for certain businesses.  The film industry falls under this category, and the lawmakers recessed without making a final decision”.  

  

Tarheel State Continues to Prosper

    “On September 10, Aaron Syrett, the Director of the North Carolina Film Office, will go to our nation's capitol, to take part in the annual North Carolina Business & Economic Development Summit.  The conference, which lasts two days, will be hosted by several of our states Congressional Representatives.  This will allow many of North Carolina’s entrepreneurs to get a chance to network and meet with federal government officials, and talk about policies, which may influence their circumstances and neighborhoods”.

    “Mr. Syrett will speak about the history and recent boost in North Carolina’s economy due to the success of the film industry.  The state’s economy has increased tremendously".  “The increase in the amount of productions is due to a ‘direct result of bi-partisan legislation that was passed in 2010, and signed into law by Governor Bev Perdue, “that increased the refundable tax credit offered to film productions that have a minimum spend of $250,000 to 25 percent”. “This incentive is also the reason why North Carolina has earned a spot on the list of the world’s top ten filming locations, according to P3 Update.com”.  The Tar Heel State has seen over 100 production companies film in the state, in the past two years.  They have spent over $622 million, and have provided as many as 50,000 job opportunities.  Thanks to this booming film industry there are “8,500 well-paying crew positions for the state’s highly skilled film professionals”. 

     “It is also the reason why companies like Showtime, can announce that their show, Homeland, produced by Fox 21, has been renewed for a fourth season.  The series has been shot in Charlotte since the series first began.  Homeland has offered as many as 6,000 employment opportunities since the beginning of the production, along with 150 above-average crew positions for trained professionals. Subsequently, the production company has spent over $90 million in the Charlotte area.  This production company came to North Carolina for several reasons, but it was the incentive which really drew them here”. 

Iron Man 3, Arthur Newman, and NBC’s Revolution out on download, DVD and BluRay Tuesday

     Since 2012, North Carolina has seen an increase of productions due to legislation passed in 2010 by former, Gov. Bev Purdue.  This has made a major impact on the economy in the state. More than 100 production companies have filmed here, and “have had a combined direct in-state spend in excess of $622 million while creating more than 50,000 job opportunities including approximately 8,500 well-paying crew positions for the state’s highly skilled film professionals”.

     This month, three of those projects that were produced in this state during this period, will be out via download, on DVD and BlueRay.  The movie Iron Man 3, “according to Box Office MOJO, as of Sept. 12, has grossed $409,013,994”, and is one of the most outstanding lucrative projects produced in the state.  They filmed for “seven months in the state and is estimated to have had a direct in-state spend of more than $100 million while providing 1,500+ job opportunities including approximately 550 well-paying crew positions for the state’s highly skilled filmed professionals.  It is available exclusively by high definition digital download, on DVD and BluRay”.  In this release there is bonus material of deleted and extended scenes, a gag reel, and an up-close look at the movie’s dramatic airplane and skydiving scene.  It will be out on Tuesday, September 24^th". 

     Another film project shot here is an independent film Arthur Newman, which stars Colin Firth and Emily Blunt.  This is a film is about a man who tries to revamp himself as he goes through a mid life crisis.  This movie was released in 2012, at the Toronto Film Festival.  Prior to the festival the production had been in the state for 45 days filming in several North Carolina counties.  This production spent more than $6.8 million, furnished more than 500 job opportunities, and 150 well paying crew positions during the four months they were here.  This film will also be out on Tuesday“.

     The third project that was shot in this state and will be out via download, DVD and BluRay is the first season of NBC’s drama Revolution.  This program is about a family and their efforts to “rebuild America 15 years after a worldwide event causes the lose of all power.  This show was shot for seven months in several counties in the state, and spent in excess of $60 million. They provided approximately 250 well-paying crew positions and over 500 job opportunities overall. This release will feature the first 20 episodes. This 5-disc set also includes a look at the making of the series as well as additional behind-the-scenes footage as to how North Carolina was able to provide the setting needed to pull off a show of this magnitude”.

     Here’s your chance to buy these hot releases for your own personal pleasure, or for someone special on your Christmas list.  

The Boost Continues!

    “North Carolina’s unemployment rate went up “one-tenth of a percentage point to 8.9 percent in July, according to data released by the state Department of Commerce’s Labor and Economic Analysis Division.  This is the first time the unemployment rate has risen in the state since January.  Compared to last year, this year’s unemployment rate is slightly seven-tenths of a percent lower.  ‘It was a disappointing month,” said Mekael Teshome, a PNC Financial Services Group Economist.  North Carolina’s unemployment rate is tied with Rhode Island for the third-worst in the nation”.

     Well despite these disappointing unemployment figures, there is a dimmer of light at the end of the tunnel for the state’s economy.  There is an industry that has seen tremendous growth since the beginning of this year.  That industry is the film industry.  The North Carolina Film Office reports a production tally of “$250 million in direct in-state spending and 25,000 job opportunities for North Carolinians”.

     More than 35 production companies have filled out “intent to film” applications suggesting they plan to either film, or have filmed in the state.   Thus far, this means that there will be over 4,300 production days encompassing as many as 30 counties, in the Tarheel State. The job opportunities include more than 3,000 crew positions for the state’s highly skilled film professionals, 1,000 well-paying talent opportunities, and 21,000 background talent positions”.

      “North Carolina continues to be a preferred location in the film industry,” said North Carolina Film Office Director Aaron Syrett.  “Our talented crew base, vast array of locations, and the state’s tax incentive —while not the largest in the nation, it’s certainly the smartest — provide filmmakers and industry leaders the right mix for bringing their productions here and showcasing them to viewers worldwide”.

     “Since 2010, when former Governor Bev Perdue signed into law House Bill 1973 and House Bill 713”, which are the “North Carolina Film Incentives”, the state has seen more production companies arriving to the state, and spending as much as $1 billion.  “The North Carolina Film Incentive is for film productions of theatrical, television and direct-to- DVD features; television series (an episodic series is considered one production); mini-series; commercials (excluding news, sporting events and political advertising) and animation productions.” The maximum tax credit for a production is $20 million.   At least $250,000 must be spent in the state on goods, services, and labor, in order to receive up to 25% of the refundable tax credit.  The companies, who earn the credit, receive a check for the full value of their refund”, “after the North Carolina Department of Revenue has performed an audit”.  

     Now for those of you interested in a location for your next production, and it meets the state’s requirements, why not consider the Tarheel State, “New Hollywood”? With all of this exciting news, I’m looking forward to seeing how well the next quarter does, aren’t you?  I’ll keep you posted!

Negotiating Techniques

       I have been assigned to do some research on negotiating techniques and discovered two YouTube videos by William Ury, one of the authors of my book for my class, “Negotiation and Deal-Making”.   He and his mentor, the late Roger Fisher, wrote the book “Getting to Yes”, a book about negotiating techniques.  "In his videos entitled “The walk from "no" to "yes", and “Negotiating for Sustainable Agreements”, he talks about conflict, and how in conflict it is easy to lose our perspective and react.  There are always two sides to a conflict, but there also is a  “third side”.  The third side is “us”, and we are to remind people what’s really at state. Let’s top fighting and start talking”.  “He says there are four practical tools he found useful for changing the game from confrontation to cooperation.  The first one is the balcony, which means focusing on what’s truly important. The second one is the ability to listen and respect others, because in a negotiation it is much more about listening than talking. The third one is the ability to reframe by changing the game from confrontational to cooperation.  The fourth one is the golden bridge. This is when you attract your opponents to your side.  Instead of making it harder for the other side make it easier”. 

     I also listened or a podcast by Mitch Jackson, a lawyer in California whose podcast was called “How We Negotiate Million Dollar Cases for Our Clients – 10 Tips to Help You Close Your Next Deal” “He had ten tips to help you win your negotiations.  Some of his tips included practicing the 80/20 rule, which means to let them talk 80% of the time, and you listen 20% of the time.  You should dress and groom yourself professionally.  You should always negotiate in person, and not by email.  You should decide if you need a third party mediator to help in your negotiation.  If you can afford one, you need to get them involved early”.

     These two videos and the podcast were very informative.  I really enjoyed the videos with William Ury.  He has been involved in some very important historical and international negotiations.