State film industry worried about tax credits

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Wednesday, June 25, 2014
NC film industry worried about tax credits
Top executives from the film industry in North Carolina are fighting for state incentives.

RALEIGH (WTVD) -- Top executives from the film industry in North Carolina are fighting for state incentives. They say if lawmakers pull those incentives big time movie and TV productions could be pulled out of the state.



Right now, industry leaders say there are eight or nine large scale productions underway. They warn that the productions will be phased out and moved to nearby states if the tax incentives are not extended.



This fight comes just as California considers upping what they offer.



"We can't afford for down time," said John Griffin with the Wilmington Regional Film Commission.



Studio executives, industry workers, and some lawmakers are pushing the legislature-- to extend film tax incentives to keep the industry booming in the state.



"What we have works, and it's significant return on the investment," said Rep. Susi Hamilton, D- Brunswick County.



"We have such a thriving industry in the state of North Carolina, and, God helps us, I hope we can keep it," said Wilmington Mayor Bill Saffo.



The credits that led movies like "Iron Man" and the "Hunger Games" to be filmed here are set to expire at the end of the year.



Supporters fear if the incentives are wiped out that production companies will go to nearby states.



"Most probably it would go immediately to Georgia, South Carolina, and then Louisiana," said Hamilton.



Supporters say the film industry has produced more than 4,000 permanent jobs and 15,000 temporary ones.



Opponents, however, feel those numbers might be fudged and the state shouldn't be showing special preference to one job sector.



"The state still loses even if you include local tax money, 39 cents on the dollars," said Donald Bryson with Americans for Prosperity. "The state of North Carolina, the General Assembly of North Carolina, shouldn't value a film production job over a plumber or furniture production or textile mills or anything like that. A job is a job is a job."



Supporters argue the film industry boasts revenue in the communities where they set up shop.



"Car rental, hotel companies, sign companies -- everything you see on a movie set is something that can be purchased locally, if they can find it," said Griffin.



Supporters of the tax credit are asking lawmakers to extend it for year to work out a solution.



Both the current versions of the House and Senate budgets do include some money for film incentives. Advocates, however, say it's not enough to keep film companies in the state.



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