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| One of the Full Frame Documentary Festival theaters in Durham | Photo: Chris White |
WRAL reports that some lawmakers in the N.C. General Assembly want to change a tax policy that entices film and TV production companies by insisting they make money in the state before getting any credits.
The current policy allows film and TV companies that spend more than $250,000 in the state to claim a 25 percent tax credit – up to $20 million, according to WRAL.
If it’s passed, the bill would eliminate the tax credit and waive any tax liability the company accrues over the next five years up to an equivalent amount.
Wilmington Regional Film Commission Director, Johnny Griffin, has spoken out to various news and media outlets, saying that only N.C.-based companies would reap benefits from the new law because those companies would be the only ones paying the waived taxes.
In other words, the majority of those film companies who come into the state would be discouraged from even doing business here because of these changes.
This is a huge problem.
As with any state, N.C. should be focused on encouraging films and TV shows to produce in the state rather than running them off. The film and TV industry can bring in many new jobs– whether part or full time.
This comes at such a bad time, when the industry is booming. Last year, companies spent a record $376 million in N.C. and created 4,100 film crew positions, according to the N.C. Department of Revenue.
Just recently, the blockbuster film, The Hunger Games, shot a big portion of its scenes in the western part of the state. Iron Man 3, another blockbuster film due out Friday, filmed many of its scenes in the Wilmington area and in Cary.
That’s not all. Many other films and TV shows have been produced on N.C. soil. NBC’s hit TV series, “Revolution,” and CBS’s new series, “Under the Dome,” have both been shooting in Wilmington.
In the past, popular series such as “Dawson’s Creek” and “One Tree Hill” were filmed in the Wilmington area.
According to Star News Online, the proposed legislation would also make film incentive credits non-refundable retroactively to Jan. 1, impacting many of the current productions – like “Revolution” and “Under the Dome.”
And, to much surprise, this is not just a Republican-Democrat issue.
The bill was drafted by Rep. Paul Luebke, D-Durham, and is supported by quite a few lawmakers in the General Assembly.
The proposed legislation is dangerous for the local industry. It’s mind boggling and downright absurd that the General Assembly would even think about hurting the industry when it’s doing so well.
With numerous top-notch productions being filmed here, the state has returned to the glory days of its filmmaking history when Bull Durham and Dirty Dancing were filmed.
Many more productions are coming to N.C. because of the competitive tax incentives the state provides. Not to mention, productions don’t just come to the state, shoot their shows and leave. The economic impact goes way beyond employing skilled professionals to work the sets. The film and TV industry boosts the local economy.
From having Hollywood actors stay in hotels to wardrobe, props and even the sets themselves.
Passing this bill would be detrimental to the industry and the cities and towns where productions happen as well.
The proposal has sent the local industry into a frenzy and rightly so. Many fear their entire livelihoods are being threatened and some local crews fear they will be forced to work far away from home instead of right in their own backyard.
Many are getting wind of this proposal and are lashing out in opposition to it. There are already plans in place to demonstrate in support of the local industry. Numerous actors and crew members have taken to social media to protest the changes as well.
When legislators came to “work” in Raleigh, it was almost a foregone conclusion that they would try to change this credit. This is a selfish act on the part of the legislature when there are more pressing issues at hand.
Glad to see where their priorities are at.
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