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SB 301

Department of Administration rule relating to general administration of records management and preservation

2025 Regular Session Introduced by Jack Woodrum

The bill increases grant caps and expands priorities for the NC Film and Entertainment Grant Fund, emphasizing larger productions and tourism-driven use of state locales.

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Bill Summary · SB 301

SB 301 — Film and Entertainment Grant Fund Mods (North Carolina)

Status: Passed first reading; effective when enacted (applies to grants awarded on or after that date)
Introduced: 2025 (Sponsors: Senators Lowe, Robinson; multiple co-sponsors)

Main purpose

Amend G.S. 143B‑437.02A to revise eligibility thresholds, maximum award limits, priority criteria, and definitions for the Film and Entertainment Grant Fund administered by the Department of Commerce. The amendments increase maximum grant caps for larger productions, add a cap for independent films, and strengthen prioritization of productions that showcase North Carolina locales (with an eye toward tourism).

Key provisions and changes

  • Fund purpose and administration remain the same: a special, nonreverting account in the Department of Commerce to encourage production activity (feature films, TV, online productions, commercials) and grow the State’s filmmaking industry. The Secretary may award grant proceeds over periods up to three years.
  • Minimum qualifying production spend thresholds (unchanged or restated):
    • Feature‑length film (theatrical): $1,500,000
    • Movie for television: $500,000
    • Television series: $500,000 per episode
    • Commercial (theatrical/TV/online): $250,000
    • Independent film: $200,000
  • Maximum grant caps (amended/increased):
    • Feature‑length film: increased from $7,000,000 to $12,000,000
    • Single season of a television series: increased from $15,000,000 to $20,000,000
    • Commercial: increased from $250,000 to $450,000
    • Independent film: new cap of $2,000,000
  • Grant share limits relative to qualifying expenses:
    • Grants may not exceed 35% of qualifying expenses for productions primarily in development tier one or two areas, and 25% for productions primarily in development tier three areas (as cross‑referenced to G.S. 143B‑437.08).
  • Priority criteria expanded:
    • Continued emphasis on maximizing benefit to the State, including percentage of employees who are NC residents.
    • New explicit priority given to productions that feature identifiable State attractions/locales (diverse geography, historical landmarks) in ways reasonably expected to induce nonresident visitation (tourism inducement).
  • Definitions clarified/confirmed (e.g., “Production,” and a definition of “Independent film” capped at $2.5M budget and produced by non‑publicly traded companies with ≤25% public ownership).

Who is affected

  • Film/TV/advertising production companies seeking state grants in North Carolina (including independent producers).
  • Department of Commerce (administration, guideline issuance, grant monitoring).
  • Local economies and vendors (crew, locations, hospitality, services) that support productions.
  • State budget/appropriations — larger maximum awards may increase potential fund outlays depending on grant demand.

Potential impacts

  • Economic: Higher caps and explicit tourism incentives may attract larger/longer productions, increasing direct on‑location spending, jobs for local workers, and possible tourism-driven economic activity.
  • Fiscal: Expanded maximum awards increase the State’s potential liabilities from the fund; actual fiscal impact depends on grant approvals, fund size, and demand. The statute retains percentage caps to limit grant share relative to qualifying spend.
  • Administrative: Department of Commerce will implement updated guidelines and evaluate projects against the expanded priority factors and new caps.

Effective date / application

  • The act is effective upon becoming law and applies to grants awarded on or after that date.

Notes: The bill amends existing statute language (G.S. 143B‑437.02A) and cross‑references the State’s development tier structure (G.S. 143B‑437.08) for percentage limits.

Compiled from official sources — confirm details with the bill’s official record.

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