Film Grant Modifications.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1116

Short Title: Film Grant Modifications. (Public)
Sponsors: Representative Davis.
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
April 30, 2026
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A BILL TO BE ENTITLED 1
AN ACT TO EXPAND THE FILM AND ENTERTAINMENT GRANT FUND. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. G.S. 143B-437.02A reads as rewritten: 4
"§ 143B-437.02A. The Film and Entertainment Grant Fund. 5
(a) Creation and Purpose of Fund. – There is created in the Department of Commerce a 6
special, nonreverting account to be known as the Film and Entertainment Grant Fund to provide 7
funds to encourage the production of motion pictures, television shows, movies for television, 8
productions intended for on -line distribution, and commercials and to develop the filmmaking 9
industry within the State. The Department of Commerce shall adopt guidelines providing for the 10
administration of the program. Those guidelines may provide for the Secretary to award the grant 11
proceeds over a period of time, not to exceed three years. Those guidelines shall include the 12
following provisions, which shall apply to each grant from the account: 13
(1) The funds are reserved for a production on which the production company has 14
qualifying expenses of at least the following: 15
a. For a feature-length film:film, one million dollars ($1,000,000). 16
1. One million five hundred thousand dollars ($1,500,000), if for 17
theatrical viewing. 18
2. Five hundred thousand dollars ( $500,000), if a movie for 19
television. 20
… 21
(2) The funds are not used to provide a grant in excess of any of the following: 22
a. An amount more than twenty-five percent (25%) thirty percent (30%) 23
of the qualifying expenses for the production if at least seventy -five 24
percent (75%) of (i) filming of the production and (ii) the qualified 25
expenses incurred by the production both occur in tier one and tier two 26
areas, as defined in G.S. 143B-437.08. 27
b. An amount more than seven million dollars ($7,000,000) twenty 28
million dollars ($20,000,000) for a feature -length film, more than 29
fifteen m illion dollars ($15,000,000) twenty-five million dollars 30
($25,000,000) for a single season of a television series, or two hundred 31
fifty thousand dollars ($250,000) for a com mercial for theatrical or 32
television viewing or on-line distribution. 33
… 34
(b) Definitions. – The following definitions apply in this section: 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 1116-First Edition
… 1
(3) Highly compensated individual. – An individual who directly or indirectly 2
receives compensation in excess of one four million dollars ($1,000,000) 3
($4,000,000) for personal services with respect to a single production. An 4
individual receives compensation indirectly when a production company pays 5
a personal service company or an employee leasing company that pays the 6
individual. 7
… 8
(7) Qualifying expenses. – The sum of the amounts listed in this subdivision, 9
substantiated pursuant to subsection (d) of this section, and spent in this State 10
by a production company in connection with a production, less the amount 11
paid in excess of one four million dollars ($1,000,000) ($4,000,000) to a 12
highly compensated individual: 13
…." 14
SECTION 2. This act is effective when it becomes law and applies to grant proceeds 15
provided from the Film and Entertainment Grant Fund on or after that date. 16