GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
S	1
SENATE BILL 693
     

 
Short Title:	Film Industry Incentives.	()	
Sponsors:	Senators Ballantine, Lee, Carter, Metcalf, Jordan; and Carpenter.	
Referred to:	Finance.	
March 26, 2001

A BILL TO BE ENTITLED
AN ACT TO PROVIDE INCENTIVES FOR THE DEVELOPMENT OF THE FILM INDUSTRY IN NORTH CAROLINA.

The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑164.14 is amended by adding a new subsection to read:
"(j)	Production Companies. -- A production company is allowed an annual refund of part of the State sales tax it pays under G.S. 105-164.4(a)(3) on the rental of transient accommodations for occupancy by its employees. If an employee of the production company occupies a transient accommodation for a continuous period of more than 30 days but less than 90 days, the production company is allowed a refund of the State sales tax it paid on the rental for the entire rental period. Notwithstanding any other provision of law, the refund allowed in this subsection does not apply to general local sales and use taxes levied under Subchapter VIII of this Chapter, Chapter 1069 of the 1967 Session Laws, or any other local act.
A request for a refund must be in writing and must include any information and documentation required by the Secretary. A request for a refund is due within six months after the end of the State's fiscal year. Refunds applied for after the due date are barred."
SECTION 2.  G.S. 143B‑434.3(a) reads as rewritten:
"(a)	Creation and Purpose of Account. – There is created in the Department of Commerce, Division of Tourism, Film, and Sports Development, the Film Industry Development Account to provide annual grants as incentives to production companies that engage in production activities in this State. The Division of Tourism, Film, and Sports Development shall administer this program in accordance with the following provisions:
(1)	To be eligible for a grant, a production company must engage in production activities in this State. A grant may not be used for political or issue advertising.
(2)	For a production other than an episode of a television or radio series, a grant may not exceed fifteen percent (15%) of the amount the production company spends for goods and services in this State during the calendar year. For a production of an episode of a television or radio series, a grant may not exceed one percent (1%) of the amount the production company spends for goods and services in this State during the calendar year.
(3)	A grant may not exceed two hundred thousand dollars ($200,000) per production. In the case of television and radio series, each episode is a separate production."
SECTION 3.  This act becomes effective July 1, 2001, and Section 1 of this act applies to taxes paid on or after that date.