Governor’s budget bill proposes big changes for NC film incentives
WILMINGTON, NC (WWAY) — A bill filed in the North Carolina Senate today presents Gov. Pat McCrory’s plan for the state budget, and with it a drastically different plan to give incentives to film projects.
The current incentive, which is set to expire at the end of the year, provides a 25 percent credit up to $20 million for productions that spend at least $250,000 in qualifying expenses. McCrory’s plan is much different.
Under the proposal, productions must spend at least $1 million in qualifying expenses to be eligible for a tax credit, which maxes out at $6 million. Also gone is the flat credit rate. Instead, the proposal offers the following credit:
-5.3 percent of money spent on payroll
-4 percent of money spent on goods and services from non North Carolina-based companies
-5 percent of money spent on goods and serves from North Carolina-based companies
The plan would also forgive the state’s share of sales and use taxes (2.5 percent for each dollar), the state’s corporate tax (currently 6.9 percent) and the state’s tax on fuel.
McCrory’s budget plan also puts some of the burden on local governments. It allows county commissions to vote to give up their share of sales and use taxes, as well as exempting productions from room occupancy taxes.
The governor’s budget proposal also creates incentives that would promote building production and post-production facilities in the Tar Heel State.
More: continued here