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Bill Summary · HB 1116

Summary of North Carolina HB 1116 (Session 2025) – Film Grant Modifications

Purpose and intent

  • HB 1116, sponsored by Representative Davis, seeks to modify and expand the state’s Film and Entertainment Grant Fund.
  • The bill is designed to encourage increased film, television, streaming, and related production activities within North Carolina by adjusting eligibility, grant amounts, and program rules.

Key provisions and changes

Creation and purpose of the fund

  • The Fund: Existing Film and Entertainment Grant Fund within the Department of Commerce remains a special, nonreverting account.
  • Purpose: To provide funds to encourage production of motion pictures, TV shows, movies for television, online-distribution productions, and commercials, and to develop North Carolina’s filmmaking industry.
  • Administration: The Department of Commerce would issue guidelines for program administration.
  • Award timing: Guidelines may allow grant proceeds to be awarded over a period not to exceed three years.

Grant eligibility and minimum qualifying expenses

  • Minimum qualifying expenses for grant eligibility (per project) include:
    • Feature-length film: minimum qualifying expenses of $1,000,000.
    • Theatrical feature: minimum $1,500,000.
    • Movie for television: minimum $500,000.
  • The guidelines limit grant percentages relative to qualifying expenses and location of production (tier system referenced in the text as Tier One and Tier Two areas).

Grant caps and limits

  • Grant caps cannot exceed:
    • 25% of qualifying expenses (proposed) or 30% (alternative wording) of qualifying expenses if at least 75% of filming and qualified expenses occur in Tier One and Tier Two areas (as defined in G.S. 143B-437.08).
    • Specific maximums include:
    • For a feature-length film: up to $7,000,000 or $20,000,000 (the text presents a staged or conditional range, potentially dependent on project type; exact interpretation may hinge on statutory definitions).
    • For a single season of a television series: up to $15,000,000 or $25,000,000.
    • For a commercial (theatrical, television, or online distribution): up to $250,000.
  • The exact language suggests a cap framework tied to project type and tiered geographic considerations.

Highly compensated individuals

  • Definition: An individual who directly or indirectly receives more than $4,000,000 for personal services on a single production.
  • Indirect compensation includes payments routed through a personal service company or employee leasing company.

Qualifying expenses

  • Qualifying expenses are the sum of specified expenditures, substantiated under guidelines, and spent in North Carolina.
  • Expenses are adjusted by subtracting any portion paid to a highly compensated individual above $4,000,000.

Effective date and applicability

  • Effective when the act becomes law.
  • Applies to grant proceeds from the Film and Entertainment Grant Fund issued on or after the effective date.

Who is affected

  • Film, television, and video production companies seeking state grants for projects in North Carolina.
  • North Carolina residents and workers involved in qualifying productions (via in-state spending and job creation implied by the program).
  • Highly compensated individuals connected to productions (due to the compensation cap affecting grant calculations).
  • The Department of Commerce, which administers the fund and implements guidelines.

Procedural and timeline considerations

  • The act sets out that guidelines for administration may specify multi-year grant disbursement (up to three years).
  • The bill becomes law upon enactment and applies to grant proceeds issued after that date, affecting projects applying for grants post-enactment.

Potential impact

  • Expanded incentive envelope for larger productions (higher caps for feature films and TV series, with tier-based geographic considerations).
  • Greater incentive targeting through increased minimum qualifying expenses and controlled grant percentages.
  • Encourages more in-state spending and production activity, potentially boosting employment and economic activity in North Carolina’s film sector.
  • Introduces an explicit limit on compensation that can be counted toward qualifying expenses, potentially affecting high-profile or highly paid personnel on a project.

Note: Some monetary figures in the text appear presented with alternate figures (e.g., 25% vs 30%, and ranges like $7,000,000 up to $20,000,000 for features). The exact application may depend on final guideline language and definitions (e.g., tiers, caps per project type).

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

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