North Carolina 2025-2026 Regular Session

North Carolina House Bill H915 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 915
	3	+	H D
	4	+	HOUSE BILL DRH40487-MCf-135
	5	+
5	6
6	7
7	8		Short Title: Reenact Film Credit. (Public)
8		-	Sponsors: Representatives Dew and Cervania (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Rules, Calendar, and Operations of the House
11		-	April 14, 2025
12		-	H915 -v-1
	9	+	Sponsors: Representative Dew.
	10	+	Referred to:
	11	+
	12	+	DRH40487 -MCf-135
13	13		A BILL TO BE ENTITLED 1
14	14		AN ACT TO REENACT THE CREDIT FOR QUALIFYING EXPENSES OF A 2
15	15		PRODUCTION COMPANY. 3
16	16		The General Assembly of North Carolina enacts: 4
17	17		SECTION 1. G.S. 105-151.29 is reenacted as it existed immediately before its 5
18	18		repeal, is recodified as G.S. 105-153.12, and reads as rewritten: 6
19	19		"§ 105-153.12. Credit for qualifying expenses of a production company. 7
20	20		(a) Definitions. – The following definitions apply in this section: 8
21	21		(1) Highly compensated individual. – An individual who directly or indirectly 9
22	22		receives compensation in excess of one million dollars ($1,000,000) for 10
23	23		personal services with respect to a single production. An individual receives 11
24	24		compensation indirectly when a production company pays a personal service 12
25	25		company or an employee leasing company that pays the individual. 13
26	26		(2) Live sporting event. – A scheduled sporting competition, game, or race that is 14
27	27		not originated by a production company, but originated solely by an amateur, 15
28	28		collegiate, or professional organization, institution, or association for live or 16
29	29		tape-delayed television or satellite broadcast. A live sporting event does not 17
30	30		include commercial advertising, an episodic television series, a television 18
31	31		pilot, a music video, a motion picture, or a documentary production in which 19
32	32		sporting events are presented through archived historical footage or similar 20
33	33		footage taken at least 30 days before it is used. 21
34	34		(3) Production company. – Defined in G.S. 105-164.3. 22
35	35		(4) Qualifying expenses. – The sum of the following amounts spent in this State 23
36	36		by a production company in connection with a production, less the amount 24
37	37		paid in excess of one million dollars ($1,000,000) to a highly compensated 25
38	38		individual: 26
39	39		a. Goods and services leased or purchased. For goods with a purchase 27
40	40		price of twenty-five thousand dollars ($25,000) or more, the amount 28
41	41		included in qualifying expenses is the purchase price less the fair 29
42	42		market value of the good at the time the production is completed. 30
43	43		b. Compensation and wages on which withholding payments are remitted 31
44	44		to the Department of Revenue under Article 4A of this Chapter. 32
45	45		c. The cost of production-related insurance coverage obtained on the 33
46	46		production. Expenses for insurance coverage purchased from a related 34
47		-	member are not qualifying expenses. 35 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 915-First Edition
	47	+	member are not qualifying expenses. 35
	48	+	H.B. 915
	49	+	Apr 10, 2025
	50	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	51	+	Page 2 DRH40487-MCf-135
49	52		d. Employee fringe contributions, including health, pension, and welfare 1
50	53		contributions. 2
51	54		e. Per diems, stipends, and living allowances paid for work being 3
52	55		performed in this State. 4
53	56		(5) Related member. – Defined in G.S. 105-130.7A. 5
54	57		(b) Credit. – A taxpayer that is a production company and has qualifying expenses of at 6
55	58		least two hundred fifty thousand dollars ($250,000) with respect to a production is allowed a 7
56	59		credit against the taxes imposed by this Part equal to twenty-five percent (25%) of the production 8
57	60		company's qualifying expenses. For the purposes of this section, in the case of an episodic 9
58	61		television series, an entire season of episodes is one production. The credit is computed based on 10
59	62		all of the taxpayer's qualifying expenses incurred with respect to the production, not just the 11
60	63		qualifying expenses incurred during the taxable year. 12
61	64		(b1) Repealed by Session Laws 2009-529, s. 2, effective January 1, 2011. 13
62	65		(c) Pass-Through Entity. – Notwithstanding the provisions of G.S. 105-131.8 and 14
63	66		G.S. 105-269.15, a pass-through entity that qualifies for a credit provided in this section does not 15
64	67		distribute the credit among any of its owners. The pass-through entity is considered the taxpayer 16
65	68		for purposes of claiming a credit allowed by this section. If a return filed by a pass-through entity 17
66	69		indicates that the entity is paying tax on behalf of the owners of the entity, a credit allowed under 18
67	70		this section does not affect the entity's payment of tax on behalf of its owners. 19
68	71		(d) Return. – A taxpayer may claim a credit allowed by this section on a return filed for 20
69	72		the taxable year in which the production activities are completed. The return must state the name 21
70	73		of the production, a description of the production, and a detailed accounting of the qualifying 22
71	74		expenses with respect to which a credit is claimed. The qualifying expenses are subject to audit 23
72	75		by the Secretary before the credit is allowed. 24
73	76		(e) Credit Refundable. – If a credit allowed by this section exceeds the amount of tax 25
74	77		imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary 26
75	78		must refund the excess to the taxpayer. The refundable excess is governed by the provisions 27
76	79		governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. In 28
77	80		computing the amount of tax against which multiple credits are allowed, nonrefundable credits 29
78	81		are subtracted before refundable credits. 30
79	82		(f) Limitations. – The amount of credit allowed under this section with respect to a 31
80	83		production that is a feature film may not exceed twenty million dollars ($20,000,000). No credit 32
81	84		is allowed under this section for any production that satisfies one of the following conditions: 33
82	85		(1) It is political advertising. 34
83	86		(2) It is a television production of a news program or live sporting event. 35
84	87		(3) It contains material that is obscene, as defined in G.S. 14-190.1. 36
85	88		(4) It is a radio production. 37
86	89		(g) Substantiation. – A taxpayer allowed a credit under this section must maintain and 38
87	90		make available for inspection any information or records required by the Secretary of Revenue. 39
88	91		The taxpayer has the burden of proving eligibility for a credit and the amount of the credit. The 40
89	92		Secretary may consult with the North Carolina Film Office of the Department of Commerce and 41
90	93		the regional film commissions in order to determine the amount of qualifying expenses. 42
91	94		(h) Report. – The Department must include in the economic incentives report required by 43
92	95		G.S. 105-256 the following information itemized by taxpayer: 44
93	96		(1) The location of sites used in a production for which a credit was taken. 45
94	97		(2) The qualifying expenses for which a credit was taken, classified by whether 46
95	98		the expenses were for goods, services, or compensation paid by the production 47
96	99		company. 48
97	100		(3) The number of people employed in the State with respect to credits taken. 49
98	101		(4) The total cost to the General Fund of the credits taken. 50 General Assembly Of North Carolina Session 2025
99		-	~~House Bill 915-First Edition~~ Page 3
	102	+	DRH40487-MCf-135 Page 3
100	103		(i) Repealed by Session Laws 2006-220, s. 4, effective for taxable years beginning on 1
101	104		and after January 1, 2007. 2
102	105		(j) NC Film Office. – To claim a credit under this section, a taxpayer must notify the 3
103	106		Division of Tourism, Film, and Sports Development in the Department of Commerce of the 4
104	107		taxpayer's intent to claim the production tax credit. The notification must include the title of the 5
105	108		production, the name of the production company, a financial contact for the production company, 6
106	109		the proposed dates on which the production company plans to begin filming the production, and 7
107	110		any other information required by the Division. For productions that have production credits, a 8
108	111		taxpayer claiming a credit under this section must acknowledge in the production credits both 9
109	112		the North Carolina Film Office and the regional film office responsible for the geographic area 10
110	113		in which the filming of the production occurred. 11
111	114		(k) Sunset. – This section is repealed for qualifying expenses occurring on or after 12
112	115		January 1, 2015." 13
113	116		SECTION 2. G.S. 105-130.47 is reenacted as it existed immediately before its repeal 14
114	117		and reads as rewritten: 15
115	118		"§ 105-130.47. Credit for qualifying expenses of a production company. 16
116	119		… 17
117	120		(k) Sunset. – This section is repealed for qualifying expenses occurring on or after 18
118	121		January 1, 2015." 19
119	122		SECTION 3. This act is effective for taxable years beginning on or after January 1, 20
120	123		2025, and applies to qualifying expenses occurring on or after that date. 21