JLF’s Becki Gray provides a preview of the short legislative session that begins next week. Among the issues to be addressed by lawmakers is whether or not North Carolina taxpayers will continue to subsidize Hollywood production companies that, in some cases, actually receive a check from the state.

North Carolina’s 25 percent tax credit for film production costs is due to expire in December. For every dollar that North Carolina taxpayers give to the film industry, we get back 19 cents in “benefits.” It’s time to pull the plug on this bad deal.

If corporate welfare must continue, taxpayers would be served better with a simpler, more transparent system that eliminates incentives targeted to specific industries. Let filmmakers compete with other industries for money from the Job Development Investment Grant and One North Carolina funds.

There is strong support for this tax incentive from both sides of the political aisle, but is must be pared back. Another option would be to make the credit “nonrefundable.” In other words, companies could still apply for the credit, but the state would no longer write checks to them.