North Carolina Film Office - Film Incentives Program

Film Incentives Program

1. A production company that spends at least $250,000 in North Carolina on a motion picture or television production is eligible to receive a refundable tax credit of 25% on in-state spending for goods, services and labor.
2. North Carolina’s film production tax credit is refundable. Companies earning the credit receive a check for the full value of their refund.
3. Productions must file an INTENT TO FILM form with the North Carolina Film Office prior to filming in order to be eligible for the tax credit.
4. Eligible film productions include theatrical, television, and direct-to-video/DVD features, episodic television series, television mini-series, animation productions, and commercials — except for news, sporting event coverage, and political advertising. For purposes of this tax credit, an episodic TV series is considered one production.
5. The maximum tax credit for a feature film production is $20 million.
6. Spending for goods purchased or leased from a North Carolina business is eligible for the tax credit. This includes fuel, food, airline tickets, and other goods if purchased in North Carolina including production-related insurance, fringes, per diems, and living stipends. On goods with a purchase price of $25,000 or more, the amount included as a qualifying expense is the purchase price less the fair market value of the goods at the time the production is completed.
7. Spending for services is eligible for the tax credit regardless of whether paid to residents or non-residents, as long as the services are performed in North Carolina.
8. Compensation and wages paid to employees for services performed in North Carolina on which withholding payments are remitted to the North Carolina Department of Revenue are eligible for the tax credit regardless of whether paid to residents or non-residents. Amounts paid to an individual who receives compensation in excess of $1 Million may count the first $1 Million towards the tax credit. Payments for per diem, living allowances, and fringe benefits are eligible to the extent they are included in the recipient’s taxable wages subject to withholding.
9. Productions are require to give on-screen credit to North Carolina