A lot of filming activity in north New Hanover County could be generated with $30 million. That’s the difference in proposed film tax grants between the budget unveiled by N.C. Senate leaders Monday, as compared with the House budget approved in May.
Rep. Ted Davis and others proposed a $60 million film grant pool. The amount was reduced to $40 million in the final House budget. The $10 million in the Senate budget keeps the program alive, but just barely.
The film industry spent $241 million on productions in North Carolina last year and received $60 million in tax refunds. Because of Wilmington’s 30-year history with the film industry, the largest share was spent right here.
This year, the $10 million pool is already committed with more than half the year to go.
The state, and especially the Wilmington region, has seen the results. Many productions have left or are bypassing North Carolina, despite our home base of experienced crewmembers. The phones are much quieter at the offices of the Wilmington Regional Film Commission.
This is not just about taxpayer dollars going to film and TV productions. Those productions employ thousands of North Carolina residents — permanent residents — who own homes, spend their money here, volunteer in the community and send their children to local schools.
As of 2014, more than 4,000 North Carolinians made their living in set construction, working on cameras, sound and lighting or handling other behind-the-scenes production details. Half of them live in and around Wilmington. Those numbers don’t count tens of thousands of extras or short-term workers.
Nor does the amount spent by productions reflect the total economic impact.
Film productions generally pay better wages for blue-collar skills than many local industries — crewmembers could make a solid middle-class wage when filming was at its peak. Those jobs have dried up, and many of those crewmembers are working in Georgia and other states that have far more generous film incentives.
Likewise, as productions have dried up, some small businesses that supplied labor or goods like copy machines and hardware to the industry also have been affected.
There is still some hope more money will be added to the film grant program. The $22.1 billion House budget appropriates almost $1 billion more than the proposed Senate budget. It is likely, though not guaranteed, a conference committee will negotiate a compromise.
New Hanover County’s legislative delegation, with the exception of Rep. Rick Catlin, who generally opposes incentives, has worked diligently to persuade fellow legislators of the economic importance of the film industry.
The Senate budget also does not restore historic preservation tax -credits allowed to expire last year, despite Gov. Pat McCrory’s strong push to reinstate them. The House approved the governor’s recommendation for a revised program that put the focus on preservation efforts that would generate revenue. But the Senate leadership stood firm.
New Hanover County Commissioner Beth Dawson said while she appreciates the Senate’s expansion of job development grants and other economic incentives, the film grants and historic preservation credits were also economic drivers.
“I’m very disappointed to see that,” she said, “… and I hope when they go to conference we will see some movement in those two areas that are so critical to our economy.”
Of course, there is much more to the budget than historic preservation and film, and secrecy usually prevails in last-minute budget negotiations. The $21.47 billion Senate plan was scheduled for debate before the full chamber Wednesday, June 17 and sponsors said they hoped to have it approved this week.
With the two chambers in disagreement on many line items, it is unclear what proposals from each budget may survive conference committee. Lawmakers interested in a strong and diverse North Carolina economy would do well to reinstate the preservation credits and increase the film grants.
Thank you for expressing in detail what most of us here in the area appear to be feeling and thinking.
It was unbelievable to me how the incentives were initially cut, leaving as you said many people without jobs, and the film industry packing up for Georgia. As one person said to me, and forgive the quote being spotty at best,” You don’t say no to the film industry, and then expect them to return. It is similar to breaking all ties with a person, a friend or girlfriend, who will always remember how you cut them off. They are insulted and move on.” That is truly a sad thing that we have done, and most of us will agree that we have cut off our nose to spite our face, or at least our law and decision makers have done, it is unforgivable, and this is about our Governor, as they do not fulfill what the voters want. We will not forget when we vote again, as well.
I appreciate Ted Davis’ efforts greatly; I am disappointed in our Senate, and that our N. C. government has come to this, where the egos of our representatives apparently overcome the needs of the people. One day we will have a more balanced fair representation because as I said, sometimes you simply will not forgive or forget.