NC Lawmakers Spotlight Films For Better Tax Break

BY EMERY P. DALESIO

RALEIGH, N.C. (AP) — Hollywood is now on stage in the Legislature's regular debates about whether targeted tax breaks pay off with more and better jobs. Lights. Make-up. Incentives?

Legislators stung by the last-minute loss of a Miley Cyrus movie in April took the first step on Wednesday toward raising the state income tax break for production companies from 15 percent of qualified spending on a project to 25 percent. The Senate's Finance Committee signed off on the measure, setting up a scheduled vote by the full Senate on Thursday.

The vote comes as lawmakers are in late-stage talks on cutting spending and raising taxes to produce a balanced budget for the year beginning in July.

Just as the state's budget is the toughest in a generation, unemployment has been the highest in more than 30 years at 10.8 percent.

Advocates say tempting production companies back to North Carolina would attract productions and create jobs.

"This is just what we need to do to get this industry to flourish in North Carolina," said Sen. Joe Sam Queen, D-Haywood.