Incentives

[Jeff Hidek]

Discuss the latest about the state's film incentive plans here. Do you the state is doing enough? Can the state rebate too much? Is 20 percent enough? Is 30 percent too much? What have you heard from film folks in other states?

[Amy Hotz]

Check out the incentives section on the N.C. Film Office's web site, www.NCFilm.com.

There is no salary cap on wages, but if you make more than $1 million, only that first million can be counted toward the rebate.

There is a cap on how much money the state is allowed to give back, $7.5 million, max. A production would have to cost more than $50 million to max out the cap.

Just a little info.

[Michael J Roberts]

To quote the Associated Press...

"The head of the North Carolina Film Office, Aaron Syrett, said he received a call from Disney Thursday explaining that Georgia offered more lucrative incentives to shoot there. North Carolina offered a 15 percent refund to the producers for direct production expenditures, but capped the amount of actors’ salaries that could qualify, while Georgia offered 30 percent and no cap on counting what actors are paid, Syrett said."

http://www.starnewsonline.com/article/20090409/ARTICLES/904099955

[Robyn Tomlin]

Interesting story in the N&O/Charlotte Observer about the Nicholas Sparks film going to Georgia instead of Wilmington:

How N.C. missed out on Cyrus movie
Wilmington was preferred location until a last-minute snag over tax collections that cost the area millions.
By Jonathan B. Cox
[e-mail]
Posted: Saturday, Jun. 06, 2009
Gov. Mike Easley signed North Carolina's film incentive into law in August 2006. The incentive returns to filmmakers 15 percent of the money they spend on qualifying expenses in the state – spend $1 million, get back $150,000. Qualifying expenses include compensation to workers and money spent on catering and other goods and services. Filmmakers must pay taxes on all qualifying expenses.
Savannah, Ga., is getting its own economic stimulus this summer, courtesy of Mickey Mouse.
Walt Disney Pictures is filming “The Last Song,” written by N.C. author Nicholas Sparks, in the city by the sea. Savannah leaders expect the production will give an $8million boost to the local economy.
Teen sensation Miley Cyrus, best known for playing Hannah Montana on Disney TV, will star in the movie, drawing eager fans to the region.
It all could have come to North Carolina.
Wilmington was the preferred location for the shoot, and state leaders – after more than two months of negotiations – came within five minutes of making it official. The deal fell apart over a $125,000 disagreement with the state's tax collectors, causing N.C. workers to miss out on as many as 500 summer jobs, costing state businesses as much as $17.5 million in movie-related revenue and prompting a public misstep for Gov. Bev Perdue in the opening days of her administration.
Records just made public by the N.C. Department of Commerce at the request of The (Raleigh) News & Observer reveal the tension between the business interests and creative demands of major motion pictures. They also show the large role that incentives now play in filmmaking and the pressure on leaders – who last week slashed the tax bill to bring Apple to North Carolina – to keep up.
More:
http://www.charlotteobserver.com/118/story/767288.html

[Amy Hotz]

So, as filmmakers, what would be the "perfect" state tax incentive? How would would you guys write it up if you were sitting in the legislature?

[Michael J Roberts]

In my opinion I think if they don't BAN the tax incentives, that it should be....

30% MINIMUM

No cap on actor salaries for qualifying. THIS IS A MUST! You can't tell a production that they can't pay the negotiated rate!

[Amy Hotz]

A reader just sent this to me, it's a really interesting story about navigating states' film incentives, how to get the most out of it.
http://www.deadlinehollywooddaily.com/produced-by-film-tax-incentives/

[Sandra Culbreth]

As long as the other states are offering such lucrative incentives, NC must offer enough to stay competitive. We are suffering the results of not doing so. I am not sure if 25% will be enough, but it is more than we currently offer, so should make us more competitive.

[NoSubsidy.org]

Now that Iowa has a 50% film subsidy other states have to raise their subsidy to compete. Governments shouldn't compete with Governments in the FILM SUBSIDY WARS. When Massachusetts or New Mexico increase their subsidies to 60% what will the NC state legislature do then?

How much property tax do you CURRENTLY pay? How much income tax is CURRENTLY taken out of your pay check (state or federal or both)? How much tax do you CURRENTLY pay to spend your paycheck in your community?

The film studios are taking advantage of governments here in the US and abroad. They have taken advantage of federal tax subsidies too. What more do they want? Look at what is going on with other state subsidy programs as some are tax credits and others are cash rebates.

Michigan and Alaska have had to deal with a lack of transparency keeping public records secret. Go to nosubsidy.org to read more details and find some links to other articles from around the country. Read about the corruption that took place in Louisiana with the former state film commissioner.

The citizens of NC should be concerned that your state government may not be able to afford this film subsidy program. You might consider that your cost of living will increase yet a few wealthy film studios, producers and actors will be able to afford their lifestyles.