Senate Bill 578, Reduce Franchise Tax/Expand Film Grants, is a net positive for the economy of North Carolina.
SB 578 lowers the state’s franchise tax, which is defined as a tax on a company’s “net worth.”
The franchise tax essentially serves as a penalty for doing business in North Carolina. Reducing the franchise tax encourages capital investment in our state, resulting in more jobs and bigger paychecks.
SB 578 also makes modifications to the film grants by lowering the amount of investment needed to qualify for the program and increasing the amount TV productions can receive.
Civitas has opposed the film grant program as a giveaway of North Carolina taxpayer dollars to Hollywood. However, since the legislation changes eligibility and the amount an individual film grant award recipient can receive but does not increase funding for the program, the benefits of reducing the franchise tax still far outweigh the negatives of making adjustments to the film grant program.
North Carolina businesses should not be penalized for growing, which benefits the economy of the state.
For that reason, Civitas Action believes a vote for SB578 is a vote for freedom.
Civitas Action intends to grade any vote on the bill in the House or Senate.
Civitas Action is a 501(c)(4) non-profit that educates and informs North Carolinians on policy issues and the actions of their elected officials.