"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”.
