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Welcome to North Carolina where stunning natural landscapes, a rich cultural history, and a supportive film community converge to create an ideal filming destination. The Tar Heel State offers not only diverse scenery but also substantial financial benefits through its attractive North Carolina film incentives.
In this guide, we will dive into the nuances of the North Carolina film rebate program, exploring what it is, who qualifies, and how you can make the most of these incentives for your next project.
Before we delve into the specifics of North Carolina film incentives, we invite you to explore Wrapbook's Production Incentive Center.
This invaluable resource offers filmmakers comprehensive information about film tax incentives across various states, including North Carolina.
With Wrapbook’s State Incentive Map you can easily navigate incentive options across the country. The Incentive Comparison Tool allows you to compare film tax incentives from different states side-by-side. And with the AI Incentives Expert, you can learn about the latest legislation and get clear explanations on how to make various state incentives work for you.
With Wrapbook, researching and comparing incentives has never been easier, ensuring you make informed decisions about where to film your next production.
North Carolina boasts a unique blend of rolling mountains, serene beaches, and bustling urban centers. This diverse array of filming locations, coupled with a temperate climate, makes the state a prime choice for filmmakers.
Productions like The Hunger Games and Dawson’s Creek have all taken advantage of what North Carolina has to offer.
Additionally, North Carolina film incentives provide compelling financial reasons to choose the Tar Heel State for your next production.
North Carolina film tax incentives were first established in 2000 to foster economic growth and support the state’s burgeoning film industry. Productions that took advantage of these original North Carolina film tax credits were Sleepy Hollow, Iron Man 3, and Under the Dome.
In 2014, the original North Carolina film tax credit was updated and became the rebate program that it is today. This program has continued to evolve in the years since to provide substantial benefits to filmmakers.
Though the program no longer offers North Carolina film tax incentives, but instead film rebates, North Carolina remains a competitive and attractive location for film and television production.
At the heart of the North Carolina film incentive program is a 25% rebate on qualifying production expenses. This rebate is funded through the North Carolina Film and Entertainment Grant with an annual allocation of $31 million.
Understanding the difference between film tax credits, rebates, and various other film tax incentive programs can be vitally important when trying to determine the right state for your production.
Film rebates are state funds paid directly to a production company for qualifying expenditures. Unlike film tax credits, which can be claimed only after a production company files a tax return with the state, rebates do not require producers to file a return.
Ryan Broussard, Wrapbook’s VP of Sales and Production Incentives, describes film rebates as essentially “buckets of cash” that can be accessed by productions that meet certain requirements.
The North Carolina film rebate is designed to cover a wide range of expenses, including goods, services, and payroll.
The program has a per-project cap of $15 million for TV series, $7 million for feature films, and $250,000 for commercials, meaning these figures are the most amount of money that can be awarded to any project of the respective production type.
The North Carolina film rebate also has a minimum spend requirement of $500,000 per episode for TV series, $1.5 million for feature films, $500,000 for made-for-TV movies, and $250,000 for commercials. That means projects in each respective production category must spend at least that amount to qualify for the rebate.
North Carolina film incentives are available to a wide array of production types. Eligible projects include:
Both resident and non-resident labor costs qualify with specific requirements and caps in place.
Production expenses like equipment rentals, location fees, props, and wardrobe all secured through North Carolina merchants qualify for the North Carolina film rebate along with payroll for cast and crew.
Thankfully, the North Carolina Film Office keeps things fairly simple. All payroll, above-the-line and below-the-line for North Carolina residents and non-residents alike and all production spend is eligible for a 25% rebate.
To benefit from North Carolina film incentives, productions must meet several criteria.
The North Carolina film rebate has a compensation cap of $1 million, meaning that only the first $1 million paid to each resident and nonresident qualifies for the payroll rebate.
Additionally, out-of-state loan outs must pay a 4% withholding tax in order for funds paid to the loan out to qualify for the rebate.
An independent audit by a licensed North Carolina CPA is required before a company can collect its rebate. Screen credit, including a logo supplied by the North Carolina Film Office, is also mandatory.
Before the North Carolina Film Office pays out the film rebate, productions must submit a director’s cut of the project to the Film Office for review. Ultimately, the rebate is usually paid out expediently.
Finally, all productions wishing to receive a North Carolina film rebate must go through a formal application process, the specifics of which we will outline below.
Applying for North Carolina film incentives involves a multi-step process.
First, production companies hoping to secure a North Carolina film rebate must complete the North Carolina Film Office's "notification of intent to film" form.
After receiving the notification of intent to film form, the North Carolina Film Office will verify the production's eligibility.
The North Carolina Film Office votes on whether to award each project a rebate based on criteria including the project’s longevity, economic impact of the project to North Carolina, and whether the project portrays the state in a positive light. The North Carolina rebate is not offered on a first-come-first-served basis.
Eligible productions then receive a link to the formal application for the North Carolina Film and Entertainment Grant from the Department of Commerce. Productions must submit a completed application along with required documentation, including the script and budget details.
It's essential to ensure all documentation is accurate and complete to facilitate a smooth application process.
Recently, Wrapbook Co-Founder Cameron Woodward sat down with FilmNC Director Guy Gaster for an in-depth conversation about everything FilmNC does to support filmmaking in North Carolina, including their generous film incentives.
Check out the conversation on Wrapbook’s On Production podcast!
North Carolina film incentives offer filmmakers significant financial benefits, making the state an attractive destination for a wide range of productions. By understanding the eligibility criteria and application process, you can maximize these incentives and bring your creative vision to life in the picturesque and versatile landscapes of North Carolina.
For more detailed information and to explore how North Carolina film incentives compare to those in other states, visit Wrapbook’s Production Incentive Center. Start planning your next production in North Carolina today and take advantage of these generous financial incentives.
At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
Tom is a filmmaker, producer, and marketing specialist based in Los Angeles.
