![]() Just a few days after the Handfield report was issued, the Fiscal Research Division published a review of his findings and it was scathing. Handfield says this comes from the taxes paid on hotel rooms on rentals, as well as payroll taxes and on other goods and services.Īccording to Handfield all this meant a net gain of 25.3 million tax dollars in 2012 alone. ![]() His study found in 2012 every dollar in film incentives the state paid out, it received one dollar and fifty two cents back in state and local taxes. The first report was by Robert Handfield, the Bank of America Distinguished Professor at North Carolina State University. The dramas, comedies, TV shows and summer blockbusters showed up.īut two recent reports show what the state got in return is up for debate. North Carolina’s film incentive program is no different.Īfter sweetening the deal in 2011 the state agreed to pay production companies 25 cents for every qualifying dollar they spend in state. The state pays something, usually tax dollars, to get something, usually jobs and tax money. ![]() "Every year they run budgets for every other region," says Beck, "They look at what would it cost if we move to Atlanta? What would it cost if we moved to New Orleans? What would it cost if we moved to Boston?"Īnd the cost of staying in North Carolina? It's likely to go up significantly.Īll business incentive programs work on a simple principle. With this latest move by the state legislature, Beck is worried the third season will be shot somewhere else. They couldn’t fight it," says Robbie Beck, the Props Master for the CBS show "Under The Dome." Its currently shooting its second season in Wilmington.Ĭredit Tom Bullock/WFAE News "Film = Jobs" bumper stickers can be found all around the EUE/Screen Gems Studio in Wilmington. "Even though Los Angeles had the best infrastructure for film making in the world they couldn’t fight the incentives. When TV shows and movies leave the comforts of California to set up shop somewhere else, likely lured there by cash incentives which cut their costs and increased their chances of being profitable. There’s a term in show-biz circles that some hate and others cheer “Runaway Production.” Today, we run the numbers to see what is at stake for the state’s economy. This week we’ve been looking at the film incentive. It’s a major hit for a North Carolina industry that, according to the Department of Revenue, spent more than a billion dollars in the state since 2007.īut the incentive itself is expensive, and there are questions over what the state gets in return. The House bill is similar to one already part of the Senate budget and one proposed by Governor Pat McCrory. Wednesday, the House Finance Committee adopted a plan which would slash the amount a production company could receive, from $20 million to five million. The curtain is poised to come crashing down on North Carolina’s film incentive. ![]()
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