NC Lawmakers Spotlight Films For Better Tax Break

But spending on movie and television isn't confined to Wilmington, Syrett said. The Will Ferrell NASCAR comedy "Talladega Nights" spent $25 million in North Carolina while it was shot in six counties around Charlotte, he said. The George Clooney football comedy "Leatherheads" spent $11.2 million in the same region, $6.3 million of that in wages for local workers, he said.

But opponents said the expansion of tax breaks for Hollywood can't be justified at a time public school teachers may be laid off and sales taxes may be raised.

"I just can't hardly justify to people back home why I would give one little segment a tax break and raise taxes on everyone else," said Sen. Don East, R-Surry.

The film tax credit North Carolina adopted in 2006 has been a moneymaker, returning $1.30 in additional tax revenue to state and local governments for every $1 credit, according to a new study by Ernst & Young commissioned by the state film office and film-related companies, unions and commissions. But raising the tax credit to 25 percent of spending, up to a maximum of $7.5 million, would return 92 cents for each $1 invested, the report said.

Syrett and Saffo contend failing to expand the incentives will see jobs dry up and the industry wither as producers get better deals elsewhere.