North Carolina to Reduce Tax Incentives for Film Industry
- Sales Tax News
- Sep 1, 2014 | Gail Cole
Many a movie has been made in North Carolina during the past three decades: The Hunger Games; Iron Man 3; The Last of the Mohicans; The Color Purple. One reason is undoubtedly the lush scenery. Another is assuredly the generous tax incentives.
Yet beginning January 1, 2015, the incentive package is being replaced with a $10 million competitive grant program with a “cap per production” of $5 million. To help put that into perspective, consider that Iron Man 3 received approximately $20 million in tax incentives in 2012.
Will the film industry continue to make movies in North Carolina? According to Vans Stevenson, a senior vice president of the Motion Picture Association of America (MPAA), “The MPAA and its members have concluded that the $20 million grant program is significantly underfunded to support the level of jobs, spending and local investment in North Carolina.”
When one door closes, another opens.
All is not lost for tax-incentive-seeking movie makers. California seems likely to expand tax incentives for the film industry.