What's Happening?
Film and television productions in North Carolina are at risk of leaving the state due to recent operational changes to its film grant program. The North Carolina General Assembly allocates $31 million annually to the film grant, but the state's commerce
department has capped the total amount dispersible each year at this figure. This cap has created a significant shortfall, as the department has over $106 million in commitments for future projects. Consequently, the North Carolina Film Office is not currently issuing new awards, effectively halting new productions until 2029 unless the cap is reversed or additional funding is secured. Jonas Pate, creator of the Netflix show 'Outer Banks,' is already considering relocating his prequel series 'Kildare' to Charleston, South Carolina. This situation echoes a previous exodus of productions from North Carolina in 2016 following the passage of House Bill 2.
Why It's Important?
The potential departure of film and television productions from North Carolina carries significant economic implications for the state. In 2025, the industry generated an estimated $185.5 million in direct in-state spending and created over 7,000 jobs across 45 counties. The current incentive issue threatens these economic contributions, impacting local workers, vendors, and businesses. Industry leaders, such as Kirk Englebright, co-founder of Dark Horse Studios, emphasize that major studios require incentives to greenlight projects, making North Carolina less competitive without a reliable program. The instability caused by the fluctuating incentive program erodes trust with production companies, who prioritize consistency when making investment decisions. This could lead to a long-term decline in North Carolina's standing as a filming destination, affecting not only direct spending but also indirect economic benefits like tourism and the retention of skilled film professionals.
What's Next?
Industry stakeholders are urging the North Carolina legislature to address the film grant cap. While some legislative enhancements were made this year, increasing the maximum grant amounts for features and TV series, these changes are deemed ineffective without a corresponding increase in the overall cap. The current situation means that even with higher individual project limits, the total available funds are quickly depleted, leading to fewer productions. Lawmakers are aware of the conversations surrounding the incentive, but it is unclear if or when a solution will be implemented. The industry is advocating for a more stable and uncapped incentive program, similar to New Jersey's model, which provides substantial, long-term funding. Without a swift resolution, more productions are expected to follow 'Kildare' and 'The Hunting Wives' out of North Carolina, leading to job losses and a decline in the state's film infrastructure.
Beyond the Headlines
The recurring challenges with North Carolina's film incentive program highlight a broader tension between economic development goals and legislative priorities. The state has seen significant economic benefits from the film industry, with over $1 billion in direct spending over the last decade. However, the political will to consistently support these incentives appears to waver, leading to cycles of growth and decline for the local film sector. This instability not only impacts large studios but also local businesses and the careers of thousands of film professionals. The situation raises questions about the long-term commitment of state governments to creative industries and the effectiveness of short-term legislative fixes versus comprehensive, stable policy. The loss of trust from major production companies could have lasting repercussions, making it harder for North Carolina to attract future projects even if incentives are eventually restored.
