Gov. Bev Perdue signed Senate Bill 943 Thursday, increasing tax incentives for motion picture studios, television networks and independent film companies looking to use North Carolina for their next project.
For many public officials and those involved in the film industry in the state, the bill-which will raise the tax incentive up to 25 percent-is seen as a means to create jobs for North Carolina residents in a difficult economic climate.
"This legislation will help grow our $91 million motion picture industry, preserve and create thousands of jobs and increase investments in yet another emerging economic cluster," Perdue said in a statement Thursday. "Providing a strong foundation for North Carolina's film industry is essential as we work to build a strong and sustainable economy through increased diversification."
Since 2007, North Carolina has had a film tax incentive of 15 percent. Although that was considered a competitive rate at the time, other states soon raised their incentives, said Aaron Syrett, director of the North Carolina Film Office, the agency that works with film companies to lure their projects to the state.
"After that incentive, 2007 was the busiest time in the history of the North Carolina [film production] history," he said, adding that there was a 40 percent decrease in 2008 as more states increased their film tax incentives. "What this [new] incentive does... is put us on a level playing field with other states."
The bill allows for production companies with more than $250,000 of qualifying expenses to receive a 25 percent tax rebate. Qualifying expenses include payroll taxes for North Carolina residents employed in the making of the movie and services contracted from local businesses.
In order to qualify for the tax incentive program, the production companies must provide the name and a detailed description of the production, as well as a detailed accounting of all qualifying expenses.
For Duke, the new incentives will continue to help the University attract film projects. The University has hosted many television shows and feature films including "Privileged," "The Handmaid's Tale," "The Program" and "Dawson's Creek."
Although there are no plans or negotiations to bring another project to campus, Michael Schoenfeld, vice president for public affairs and government relations, said the University is always looking for new projects to host.
"We're certainly open to ideas and look forward to seeing if there are projects that we could do," he said.
With the new incentive for producers to choose Duke and its surrounding area as filming locations, students may benefit to gain experience in the entertainment industry, Schoenfeld added.
Vanessa Vincent, a senior in the Film/Video/Digital program, said she would welcome the opportunity to work on projects close to campus. Although she has been able to find work in the entertainment business in her hometown of New York City without personal connections, Vincent said she would greatly benefit from more opportunities near Duke.
"I wouldn't be able to get out to [Los Angeles], which is considered the mecca of the film industry," she said. "It's either New York or here in North Carolina because there's really no place in between."
Schoenfeld said that a lot of thought goes into which projects are allowed on campus and each option must ultimately serve to enhance the University's image.
"We are very picky about these types of things," he said. "The buildings here at Duke say as much about Duke as the University itself, so we are very particular and very deliberate about the type of projects we allow to take place on campus."
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