Tax Credits To Hollywood Fat Cats Fails To Create Jobs

Bill: HB 713
Short Title:  Expand Film Credit
Date: May 12, 2010

SUMMARY:  HB 713 would expand North Carolina’s existing tax credit to corporations shooting movies or television shows in North Carolina. The tax credit is being expanded under the guise of “creating jobs.” Studies show, however, that film incentives do not create jobs, and end up being a drag on state budgets. In the current economic climate, it seems especially harsh to expect hard-working North Carolinians to pay for a tax break to wealthy Hollywood executives.
Studies Show Film Incentives Do Not Create Jobs

• A study commissioned by the state film office stated that the state would lose money on increased film tax credits for at least two years
• The Tax Foundation issued a special report examining state film tax credits and concluded, “Movie production incentives are costly and fail to live up to their promises.”
• The John Locke Foundation also issued a report that suggested tax film credits will have a net negative effect on North Carolina’s budget.

Struggling North Carolina Families Will Have to Pay for the $40-60 million tax breaks to wealthy Hollywood studio executives

• A fiscal note accompanying the bill projects the tax credit will reduce state tax revenue by $40 -$60 million annually after 2010-11.
• Without any corresponding spending reductions, the tax breaks extended to millionaire Hollywood executives will need to be paid for by hard-working North Carolinians already struggling to pay their bills.