Expands the eligibility requirements of the Film and Entertainment Grant Fund (Fund) in GS 143B-437.02A so that the funds are reserved for both online streaming productions as well a television series at $500,000 per episode (was, just TV series). Increases the caps on funds as follows: (1) from $7 million to $20 million for a feature-length film or single season of episodes intended for online distribution (was, just feature-length film) and (2) from $15 million to $25 million for a single season of a TV show. Specifies that the grant amount for the first season of a TV show, when added to any grant for a pilot episode, cannot exceed $25 million.  Now prohibits funds from being awarded to recorded concerts or other live performance events for theatrical or other release. Removes game shows from the types of productions that cannot receive funds from the Fund. Modifies definition of “highly compensated individual” to an individual who receives compensation in excess of $4 million (was, $1 million). Makes conforming change to definition of qualifying expenses. Defines production for an online show as all the episodes produced for a single calendar year, provided there are at least six episodes with an average running time of at least 20 minutes. Removes the statutory cross-reference to production company and defines the term as a person engaged in the business of making original motion pictures or video content for theatrical, commercial, advertising, or educational purposes. Sets forth qualifying expenses for game shows and productions that document purportedly unscripted real-life situations primarily using unfamiliar people in lieu of professional actors.

Creates a Micro-Budget Productions Account (Account) in the Fund to provide grant funds to encourage smaller productions to develop the filmmaking industry within the state in the amounts described. Requires the production company to have qualifying expenses of at least $50,000 in the state but no more than $1,499,000 for the production. Also requires that the production have at least 75% of the filming occur in the state by or with a production company with company headquarters in the state. Instructs the Department of Commerce (DOC) to adopt guidelines providing for Account administration, including the grant awards for those micro-budget productions described in the statute.

Appropriates $1.5 million from the General Fund to DOC for 2026-27 to the Account for purposes consistent with the act. Effective July 1, 2026.

Applies to grants made on or after July 1, 2026.