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NC Introduces Games Tax Break for Developers

- By - Source : Tom's Guide US

North Carolina-based developers get a 15-percent tax credit.

Epic Games played host to North Carolina governor Bev Perdue Thursday afternoon as she signed a new law--the Interactive Digital Media Bill--that offers companies "economic incentives" for moving in, setting up shop, and producing interactive digital media.

Bottom line, this means that developers will receive a 15-percent tax credit on compensation and wages for employees who work in the interactive digital media industry. The credit could rise to 20-percent if the project takes advantage of academic resources from the University of North Carolina system or the North Carolina Community College system.

"This was a result of a lot of hard work by a lot of dedicated, passionate people," said Wayne Watkins, project manager for Wake County Economic Development.

Currently the state is struggling to keep the local film industry from farming out work to Canada. The new law will help bring in more digital media developers while allowing current residents to expand their facilities. The overall revenue could compensate for the film industry's slow decline within the state.

"The passage of these bills is important to economic development in the area because it shows that the local community and state are behind major efforts," Watkins added.

North Carolina follows Georgia, Florida, Louisiana, and Virginia who have already enacted similar provisions within the last 18 months.

The new law will take affect in 2011.

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jhansonxi 07/23/2010 10:18 PM
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I wonder if the employees have to live in NC. Much development is over the Internet now with distributed teams. A tax break is nice but only applies to state taxes, not federal.

MxM 07/23/2010 10:38 PM
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I suspect it is only for those who is in-state. Otherwise what prevents some company simply register in NC and continue employ workforce elsewhere.

victomofreality 07/23/2010 10:47 PM
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The Canadian and American dollars are pretty much on par why is Canada now taking the film business from NC?

ryan156 07/23/2010 11:14 PM
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I wonder if the fact the new British Government massively reduced its support for the Video Games industry in the UK had anything to do with this...

extremepcs 07/23/2010 11:36 PM
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This just in - tax breaks create jobs. Someone call the white house and clue them in.

pojih 07/23/2010 11:57 PM
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victomofreality :
The Canadian and American dollars are pretty much on par why is Canada now taking the film business from NC?



I am also curious as to why Canada would be getting these jobs.

Anyone enlighten me?

Roten67 07/24/2010 12:07 PM
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Although the US $ adn Can $ are close by comparison when you are dealing millions of $ then this can amount savings of 100s of thousands of $s that my friends is greed

Anonymous 07/24/2010 4:16 AM
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The only reason ever anyone moves business out of the US is money. The jobs were leaving because of the exchange rate and tax breaks in Canada.

Trueno07 07/24/2010 5:46 AM
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I Could see it being a good place for a smaller Indie studio setting up shop. Or, if EA wanted to run a studio out of NC, that might work too. Overall, a step in the right direction.

descendency 07/24/2010 7:40 AM
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extremepcs :
This just in - tax breaks create jobs. Someone call the white house and clue them in.


Your Nobel Prize in Economics is being mailed as we speak.

Marco925 07/24/2010 8:05 AM
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extremepcs :
This just in - tax breaks create jobs. Someone call the white house and clue them in.



Social spending on programmes also create jobs, This just in. those people helping to repair and build our roads?(one example) they aren't doing it for fun.

Provided you're from the US, You already have some of the lowest taxes amongst Developed Nations, However, the economy also grows with government spending. It's not a black and white picture, it's trying to find a harmonious balance between the two.

Where a tax break for one Sector comes in, that means to fill up that hole. something or someone else has to get taxed higher so that a debt doesn't go out of control. the Ideology of Tax Nothing but spend like crazy is driving the US into a big red hole of debt. The money has to come from somewhere.

eddieroolz 07/24/2010 9:45 AM
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Seems like a solid plan. Given that it is successful I hope other places will jump in with this as well.

Regulas 07/24/2010 3:01 PM
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Better than giving it to the "tax you and over regulate you to death" libtard idiots that run California.

Hupiscratch 07/24/2010 8:09 PM
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Bravo, NC!

Kami3k 07/25/2010 1:24 AM
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regulas :
Better than giving it to the "tax you and over regulate you to death" libtard idiots that run California.



Yawn another reptard trying to speak. See I can do it too!

Sigh this is why I think anyone who speaks about politics are simply little retarded kids, might be because that's how most act.

ksampanna 07/25/2010 9:04 PM
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Good for them.

Homeboy2 07/25/2010 11:17 PM
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"Although the US $ adn Can $ are close by comparison when you are dealing millions of $ then this can amount savings of 100s of thousands of $s that my friends is greed"

A company wanting to save hundreds of thousands is "greedy"? You're an idiot.

neiroatopelcc 07/27/2010 9:57 AM
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pojih :
I am also curious as to why Canada would be getting these jobs.Anyone enlighten me?


Well if you want to make a good movie, it can't be from france or usa - and canada's sort of the only country in your area you haven't pissed off enough that they refuse to work with you.