Last year, the General Assembly and Governor McCrory passed the Tax Simplification and Reduction Act which simplified the tax code and eliminated many of the state’s tax loopholes.
Now special interest groups are pressuring legislators to renew the expiring tax incentives for film production.
North Carolina’s film tax incentive gives a tax credit per production of 25 percent of all allowed in-state spending, up to $20 million. That credit is refundable, meaning that, if a production earns more in tax credits than it owes in taxes, it gets a check from the state. You read that right – a check from the state.
Despite multiple “studies” from the film industry, the non-partisan Fiscal Research Division at the General Assembly has found that this tax carve out is a net loss for the state – to the tune of $45 million in 2012.
Let’s make it clear that we do not want the state government giving handouts to Hollywood, or any special interest group! No more Hollywood Handouts!