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Piedmont Triad FIlm Commission Releases Incentives Study
4/3/2014

A new study released this week by North Carolina State Poole College of Management distinguished professor Dr. Robert Handfield found the tax incentive intended to attract film and television production to the State has produced a significant return on investment for North Carolina’s economy.   The study, which was supported by PTFC and commissions throughout the state, drove home the value in recruiting the film industry to the state and especially highlighted the staggering number of jobs the industry provided; over 4,000 jobs paying an average of $66,000 a year. 
 
The study outlined what film commissioners have seen on a first hand basis: good-paying jobs and positive economic impact. From 2007 through 2012, the film and television industry has spent $1.02 billion in the state, and generated a projected $170,000,000 in tax revenue.  What is known as the "Film Incentive Credit"  has widely been responsible for this huge revenue, based on the study.  The cost of the credit over the 2007 to 2012 period was $112,000,000. The result means that for every dollar of credit issued, the industry generated $9.11 in direct spending and contributed $1.52 in tax revenue back to North Carolina.

The study, titled “A Supply Chain Study of the Economic Impact of the North Carolina Motion Picture & Television Industry,” quantifies the incentive’s return on investment (ROI) and "using predictive models, determine what the financial impact will be both if the incentive is extended, and if the incentive is allowed to expire."
 
Executive Director of the PTFC, Rebecca Clark, will join film professionals from around the state at RiverRun Film Festival on Sunday April 6th2014  to discuss the Film Incentives in-depth and examine the study's findings.  The event, "NC Film Rebate Debate" is sponsored by the North Carolina Film Office, Piedmont Triad Film Commission and Entertainment Partners, and will be held at:
 
RiverRun Lounge- 2:00 P.M. 
411 W. Fourth St.
Winston-Salem, NC 27101

Below are some of the significant findings of the study, guaranteed to be discussed at Sunday's panel. 

• For every dollar of the credit issued, the industry spends $9.11 within the State.
• The projected tax revenue collected as a result of film and television production from 2007-2012 is $170,330,307. When compared to the cost  of the credit ($112,000,000) over the same period of time, the result is for every dollar of the credit issued, the industry generates $1.52 in tax   revenue back to the State.
• For 2012 alone, the production tax incentive contributed a net positive cash flow of $25.3 million for North Carolina. This is the difference    between the 2012 cost of the incentive ($60.14M) and tax revenue collected by state and local government ($85.4M).
• The incentive has allowed North Carolina to maintain a permanent crew base, providing 4,259 jobs at an average wage of $66,000, which is   over a third higher than the national average for private industry ($41,750).
• Using predictive modeling forecasts, the study finds that if the production incentive is allowed to expire, 4,046 jobs would be eliminated and    the industry’s tax contribution would shrink to $4.3M. Additionally, research predicts a loss of over $164M in business revenue to more than        1,000 small businesses across the State.
 
Please contact the Piedmont Triad Film Commission directly for questions or comments on the study's findings and/or information about Sunday's panel discussion. 

 

 


Piedmont Triad Film Commission • 416 Gallimore Dairy Road, Suite M, Greensboro, NC 27409 • 336.393.0001 • info@piedmontfilm.com
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