Film Credit bill that gives motion picture production companies a 25 percent tax credit (increased from 15 percent). They currently get a 15 percent refundable credit on their income tax and a break on sales tax. The credit is capped at $7.5 million per film production. The new version allows the film company to elect the current tax break or take a 25 percent credit.
The proposed committee substitute (PCS) of the bill is proposed that adds two provisions:
1. Reduce the credit for creating jobs in tier three counties from $750 to $500 per job.
2. Eliminate the credit for investing in business property for tier three counties.
A fiscal note on the bill says the film credits will cost the taxpayers of NC $40-$60 million once it becomes effective in fiscal year 2010.
Discussion on this bill will continue this afternoon when the committee continues.
