Amends GS 105-130.47 and GS 105-151.29, which authorize corporate income tax and individual income tax credits for film production companies, to impose additional oversight requirements and restrictions on the award of the credit by (1) limiting the credit for a qualifying expense of a production company for compensation of individuals to $500,000 (was $1 million); (2) prohibiting the award of a tax credit of any amount for a feature film with a rating of “NC-17” by the Motion Picture Association of America; (3) requiring the Secretary of Revenue to consult with the NC Film Office in determining the amount of qualifying expenses for eligible production companies; (4) adding to the items to be included by the Department of Revenue in the economic incentives report the identity of production companies claiming the credit and the title of the film production for which the credit is claimed; and (5) requiring the NC Film Office to determine whether a film production is eligible for the credit, including whether the production satisfies the requirements of the GS 105-130.47 or GS 105-151.29 and whether the film has serious artistic merit, and to issue a preapproval certificate that is reviewed by the Department of Revenue after the production is completed to determine whether the final film product differs substantially from the production as described in the preapproval certificate.
Effective for taxable years beginning January 1, 2011.