Research

Refundable Tax Credit

North Carolina offers a 25% refundable tax credit. The 25% refundable tax credit is in effect for a single production who report the qualified expenses on their tax return beginning with the taxable year 2011.

SUMMARY OF NORTH CAROLINA REFUNDABLE TAX CREDIT

Incentive	25% refundable tax credit
Per Project Cap	$20 million (television series are not subject to per project cap)
Minimum Spend	$250,000
Annual Cap	No cap
Qualified Labor	First $1 million of each resident & nonresident qualify
Loan Out Withholding	Yes. 4%
Audit	North Carolina pays for the audit
Screen Credit Required	Yes
Qualifying Expenses	Goods / Services / Compensation & Wages / Production-Related Insurance / Fringes / Per Diems / Living Expenses & Stipends
Qualifying Productions	Feature Films / Direct-to-Video / Episodic Television Series / Movies of the Week / Television Mini-Series / Reality Television / Commercials / Documentaries / Animation Productions / Webisodes
Application	File Intent to Film online form prior to start of production
State-Owned Property	Fee-free usage
Sunset Date	January 1, 2015
Enacted Bill Numbers	H 1973 (SL 2010-147); H 713 (SL 2010-89); S847 (SL 2012-194)

Year-end projections show television and film productions had a direct in-state spend in excess of $254 million and created more than 4,000 well-paying crew positions for the state’s highly skilled workforce.  These productions created nearly 25,000 job opportunities (full time equivalent and temporary jobs), including talent and background extra positions, for North Carolinians.  These numbers are the second highest in the industry’s history for in-state spending by productions as well as total job opportunities created. Beyond the more than $254 million in direct spending, additional spending and job creation have taken place on numerous lower budget projects and commercials.

“The past three years have produced unheralded numbers in direct in-state spending and job opportunities," said NC Film Office Director Aaron Syrett.

According to the North Carolina Film Office, the Tarheel State is fifth in the nation when it comes to production revenue, trailing only California, New York, Georgia and Louisiana. The state — which offers a 25% refundable tax credit — is coming off back-to-back record years for film production, taking in $376 million in 2012 that created more than 4,100 full-time crew jobs. Last year it hosted shoots for projects including Iron Man 3 and Homeland. “It is amazing to see what has taken place the past two years in North Carolina,” said NC Film Office Director Aaron Syrett said in his 2012 report. “Not only were we able to exceed our record-breaking numbers from 2011, but we continue to grow throughout the state.” 

People of interest to interview:
Pat McCrory
Carey Jones
Aaron Syrett
Sharon Decker