S257 - 2026 Appropriations Act. (SL 2026-41)

• A production must have qualifying expenses from $50,000 to $1,499,000 for the production in North Carolina.
• Grant funds cannot be used to provide in excess of (i) a base amount equal to the lesser of 20% of the qualifying expenses for the production or $100,000 plus (ii) any of the following:
  • A bonus of 5% of the base amount, if at least 75% of the compensation and wages paid for the production were paid to North Carolina residents.
  • A bonus equal to 3% if at least 75% of the filming occurred in a Tier Two and Tier One area, or 5% if at least 75% of the filming occurred in a Tier One Area.
• Funds must be reserved for a production for which at least 75% of filming occurred within the State or with a production company headquartered in this State.
• Funds must not be contingent on existence, proof, or guarantee of a distribution agreement.
• Productions are not limited to feature films, television series, or commercials but can include short films, documentaries, or other similar audiovisual works.
• No grant may be awarded that could cause the State’s potential liability in a single calendar year, when considered with other grants awarded during that year, to exceed the amount available in the account.

A production that receives a grant award under the Micro-Budget Production Grant Fund is ineligible to receive a grant award under the traditional Film and Entertainment Grant Fund. (Section 5.8 of S.L. 2026-61).

This section became effective July 1, 2026.