SB 578 - Reduce Franchise Tax/Expand Film Grants

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. While the bill also includes some modifications to the state’s Film Tax Credit – which is ardently opposed by Civitas Action – 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.