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”.