Rep. Cervania files bill in North Carolina House to reinstate film production tax credit

A new bill filed by State Rep. Maria Cervania in the North Carolina House seeks to reinstate a tax credit aimed at supporting film production companies operating in North Carolina, according to the North Carolina State House.

The bill, filed as HB 915 on April 10 during the 2025 regular session, was formally listed with the short title: ‘Reenact Film Credit.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill reenacts the tax credit for qualifying expenses of production companies in North Carolina, effective for taxable years starting Jan. 1, 2025. It allows production companies to receive a credit of 25% against state taxes for certain in-state expenses related to film production, provided the expenses total at least $250,000. The credit applies to expenditures, such as goods and services, wages, production-related insurance, and living allowances. It excludes costs paid to highly compensated individuals over $1 million. The maximum credit for feature films is capped at $20 million. Productions ineligible for the credit include political ads, radio productions, and obscene material. Companies must notify the Division of Tourism, Film, and Sports Development of their intent to claim the credit and acknowledge local film offices in production credits. The bill ensures that qualifying expenses can be audited and requires detailed reporting by the Department of Revenue.

Of the two sponsors of this bill, Cervania proposed the most bills (33) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Cervania graduated from the University of California at Berkeley with a BA.

Cervania, a Democrat, was elected to the North Carolina State House in 2023 to represent the state’s 41st House district, replacing previous state representative Gale Adcock.