 |
|
|
NORTH CAROLINA FILM INCENTIVES
New 25% incentive:
Spend at least $250,000: Receive a refundable tax credit of up to 25% on in-state spending for goods, services and labor. North Carolina's film production tax credit is refundable. Companies earning the credit receive a check for the full value of their refund.
- Project cap has been expanded to $20 million.
- Expansion of qualified expenses to include items such as fringe benefits, per diem and living stipends.
- The 6.9% corporate income tax on the incentive has been eliminated allowing the production company to realize the full 25% of qualifying expenses.
- The new 25% film incentive is now in effect for a single production who reports the qualified expenses on their tax return for the taxable year 2011.
Legislative Language:
• SL2010-147 Increases Film Incentive
• SL2010-89 Repeals corporate income tax
Current Film Incentives (until 12/31/10):
Spend at least $ 250,000 and receive a refundable tax credit of up to 25% on in-state good, services and labor. Companies earning the credit receive a check for the full value of their refund.
- Eligible film productions include theatrical, television and direct-to-DVD features; television series (an episodic series is considered on production); mini-series; commercials (excluding news, sporting events and political advertising) and animation productions. The maximum tax credit for a production is $7.5 million.
- Spending for goods purchased or leased from a North Carolina business is eligible for the tax credit. This includes fuel, food, airline tickets, production insurance and other goods purchased in the state.
- The state’s sales and use tax is 1% for film-related purchases and rentals for productions. The tax can be used in conjunction with a 15% film incentive BUT cannot be used in conjunction with the 25% film incentive.
- Compensation and wages paid to employees, regardless of whether they are residents or non-residents, for services performed in North Carolina on which withholding payments are remitted to the North Carolina Department of Revenue are eligible. Loan-outs must pay 4% withholding on compensation.
- Wages up to $1 million are eligible. Payments for per diem, living allowances and fringe benefits are also eligible to the extent they are included in the recipient’s taxable wages subject to withholding.
- North Carolina Film Office and any regional film commissions representing areas in which the production was shot must receive on-screen credit.
SOUTH CAROLINA FILM INCENTIVES
A production is eligible for a wage rebate up to 20% for employees. The wages of all South Carolina residents and all South Carolina and non-resident performing artists (including stunt performers) are eligible for this rebate. The wages of all non-residents, including crew, are eligible for a 10% rebate up to $3500 per person. For a television series, the wages of all non-residents are eligible for the 20% rebate. Wages for each qualifying person must be less than $1,000,000 for the project and wages must be subject to South Carolina withholding tax. The wage rebate is assignable.
|
|
