The end of film tax credits in North Carolina | TigerDroppings.com

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I B Freeman
Member since Oct 2009
5112 posts
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The end of film tax credits in North Carolina


Seems North Carolina has decided to end their film tax credit program effective 1/1/2015. They gave filmmakers 25% of their expenses in the same manner Louisiana gives them 30%.

Perhaps proof that public education is better in North Carolina than in Louisiana the legislators recognized film lobbyist talk of "economic activity" is not the same as state revenues.

quote:

"Is it nice and glitzy? Yeah, everybody likes 'Homeland,' " said Sen. Bob Rucho, a Republican who leads North Carolina's Senate finance committee and represents Mecklenberg County, where the popular Showtime TV series is filmed. "But is it worth spending the money on film credits? There's no evidence that it is."

"We spent $70 million on film incentives last year, and what else could we have done with that $70 million?" said Rep. Mike Hager, the GOP majority whip, who hails from Rutherford County, where "Dirty Dancing" was shot. "We could have paid more teachers, kept our teacher assistants, given raises to our highway patrol."


quote:

But some think tanks on the right and the left argue that film-incentive programs don't offer enough bang for the buck. Most states pay a subsidy worth about 25 cents for every dollar of production expense, return on investment is hard to quantify, and the highest-paying jobs go to people out of state, says the left-leaning Center on Budget and Policy Priorities in Washington







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Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
5655 posts

re: The end of film tax credits in North Carolina


I've never had this explained to me: are we actually spending money, or are we offering tax discounts? If tax discounts, is that really "spending" money?





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
79910 posts

re: The end of film tax credits in North Carolina


quote:

I've never had this explained to me: are we actually spending money, or are we offering tax discounts? If tax discounts, is that really "spending" money?
Oh, no...you didn't just do that, did you?







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Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
5655 posts

re: The end of film tax credits in North Carolina


Did I just open a can of worms?





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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11349 posts
 Online 

re: The end of film tax credits in North Carolina


Here we go again





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
79910 posts

re: The end of film tax credits in North Carolina


Yes.





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Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
5655 posts

re: The end of film tax credits in North Carolina


What can I say, some men just want to watch the world burn





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Easy
Inglewood, CA
Member since Dec 2008
3503 posts

re: The end of film tax credits in North Carolina


I think that it depends on whether the movies and shows would still be shot in Louisiana if there weren't any tax credits.





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Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
5655 posts

re: The end of film tax credits in North Carolina


Granted. My assumption is that most would not be. But, that's just an assumption. I'd love to see evidence, either for or against.





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shutterspeed
Southern Miss Fan
Da Sipp
Member since May 2007
33582 posts
 Online 

re: The end of film tax credits in North Carolina


Bye-bye, Wilmington film/tv industry. Atlanta and Nashville thank you for the new business.





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HortensePowdermaker
Grambling Fan
Member since Feb 2013
696 posts

re: The end of film tax credits in North Carolina


quote:

are we actually spending money, or are we offering tax discounts?


The state of Louisiana is actually spending money. That is due to the fact that the state backstops (i.e. makes the "tax credits" redeemable in cash directly to the state at 85 cents on the dollar). The film production company does not have to generate a tax liability in order to have offsetting tax credits. It is effectively just a cash rebate program.

quote:

If tax discounts, is that really "spending" money?


If it were just tax discounts, then it would be somewhat arguable, although still probably dubious. However, as I just explained, it is basically just a cash rebate not linked to taxes.






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Easy
Inglewood, CA
Member since Dec 2008
3503 posts

re: The end of film tax credits in North Carolina


The state still gets income tax revenue doesn't it? That has to add up.





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Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
5655 posts

re: The end of film tax credits in North Carolina


Then I agree, we shouldn't be offering refundable tax credits. I would have no issue with slashing their tax rate. I've never seen a tax cut I didn't like





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I B Freeman
Member since Oct 2009
5112 posts
 Online 

re: The end of film tax credits in North Carolina


quote:

The state still gets income tax revenue doesn't it? That has to add up.


It doesn't. Not even close. You are paying 30% of the salaries of out of state movie stars every time they make a production here.






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