N orth Carolina legislators will allow the state’s film tax incentive to run out this year, cutting a 25 percent rebate to a hard cap of $10 million in grants with a $5 million cap per production. Last year, the state spent $61 million in production incentives.
The effective termination of its film industry is a huge mistake on the part of the state legislature.
This year, California will raise its film incentive package to $330 million, a carrot enticing production away from North Carolina’s stick.
North Carolina is no longer home to production of films like “The Hunger Games” and “Iron Man 3,” which both benefited from the program. Production benefits the local economy through on-site spending and by employing North Carolinians both temporarily and permanently. The industry also increases tourism. The N.C. Film Office reported spending of $244 million by production companies in 2013.
Wilmington, the site of 17 series productions in the past 18 months and once the primary “Dawson’s Creek” location, is often called “the Hollywood of the East.” This decision will render the cultural distinction meaningless.
There were 19,000 film industry jobs in North Carolina in 2013, and a large portion will disappear as a result of this cut. There is no reason for large-budget production companies or their employees to have any interest in North Carolina when much larger incentives are available in Louisiana, Georgia and South Carolina, which all have 25 to 30 percent incentives and no per-project cap.
Those interested in keeping the current tax incentive program in North Carolina can find a petition at Moveon.org.
