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--- version:Edition 1
+++ version:Filed
@@ -1,13 +1,13 @@
 GENERAL ASSEMBLY OF NORTH CAROLINA
 SESSION 2025
-S 1
-SENATE BILL 1002
+S D
+SENATE BILL DRS35440-MCa-324
 
 Short Title: Micro-Budget Productions & Film Grant Changes. (Public)
 Sponsors: Senator Lee (Primary Sponsor).
-Referred to: Rules and Operations of the Senate
-May 4, 2026
-*S1002-v-1*
+Referred to:
+
+*DRS35440-MCa-324*
 A BILL TO BE ENTITLED 1
 AN ACT TO MODIFY THE FILM AND ENTERTAINMENT GRANT FUND. 2
 The General Assembly of North Carolina enacts: 3
@@ -15,7 +15,7 @@
 "§ 143B-437.02A.  The Film and Entertainment Grant Fund. 5
 (a) Creation and Purpose of Fund. – There is created in the Department of Commerce a 6
 special, nonreverting account to be known as the Film and Entertainment Grant Fund to provide 7
-funds to encourage the production of motion pictures, television shows, movies for television,  8
+funds to encourage the production of motion pictures, television shows, movies for television, 8
 productions intended for on -line distribution, and commercials and to develop the filmmaking 9
 industry within the State. The Department of Commerce shall adopt guidelines providing for the 10
 administration of the program. Those guidelines may provide for the Secretary to award the grant 11
@@ -43,8 +43,12 @@
 exceed twenty-five million dollars ($25,000,000). 33
 (3) The funds are not used to provide a grant to more than one production 34
 company for a single production. 35
+FILED SENATE
+Apr 30, 2026
+S.B. 1002
+PRINCIPAL CLERK
 General Assembly Of North Carolina Session 2025
-Page 2  Senate Bill 1002-First Edition
+Page 2  DRS35440-MCa-324
 (4) The funds are not used to provide a grant for a production that meets one or 1
 more of the following: 2
 … 3
@@ -84,7 +88,7 @@
 ($4,000,000) to a highly compensated individual: 37
 a. Goods and services leased or purchased. For goods with a purchase 38
 price of twenty -five thousand dollars ($25,000) or more, the amount 39
-included in qualifying expenses is the purchase price  less the fair 40
+included in qualifying expenses is the purchase price less the fair 40
 market value of the good at the time the production is completed. 41
 Goods and services includes the costs of tangible and intangible 42
 property used for, and services performed primarily and customarily 43
@@ -95,24 +99,24 @@
 1. Costs for development, marketing, and distribution; costs 48
 distribution. 49
 General Assembly Of North Carolina Session 2025
-Senate Bill 1002-First Edition  Page 3
+DRS35440-MCa-324  Page 3
 2. Costs of financing for the production, of bonding related to the 1
 production, of production-related insurance coverage obtained 2
 on the production; and expenses production. 3
 3. Expenses for insurance coverage purchased from a related 4
 member. 5
-4. For game shows and productions that document purportedly 6
+4. For game shows  and productions that document purportedly 6
 unscripted real -life situations primarily using unfamiliar 7
 people in lieu of professional actors,  (i) costs for and value of 8
 prizes awarded and (ii) the fair market value of any item in the 9
-show intentionally or negligently used or destroyed for 10
+show intentionally  or negligently used or destroyed for 10
 entertainment purposes immediately prior to its destruction or 11
 use. 12
 … 13
 (h) Micro-Budget Productions Account. – There is created in the Film and Entertainment 14
 Grant Fund a special, nonreverting account to be known as the Micro-Budget Productions  15
 Account to provide funds to encourage smaller productions  to develop the filmmaking industry 16
-within the State. The Departm ent of Commerce shall adopt guidelines providing for the 17
+within the State. The Department of Commerce shall adopt guidelines providing for the 17
 administration of the program. Those guidelines shall apply to each grant from the account and 18
 shall adhere to the provisions in this section, with the following modifications: 19
 (1) The funds are reserved for a production on which the production company has 20
@@ -142,17 +146,17 @@
 percent (75%) of the filming occurred in development tier two and one 44
 areas or (ii) five percent (5%) if at least seventy-five percent (75%) of 45
 the filming occurred in a development tier one area. For purposes of 46
-this sub -subdivision, a "development t ier area " is as defined in 47
+this sub -subdivision, a "development tier area " is as defined in 47
 G.S. 143B-437.08. 48
 (3) The funds are reserved for a production for which at least seventy-five percent 49
 (75%) of the filming occurred in the State by or with a production company 50
 with company headquarters, as defined in G.S. 143B-437.01, in this State. 51
 General Assembly Of North Carolina Session 2025
-Page 4  Senate Bill 1002-First Edition
+Page 4  DRS35440-MCa-324
 (4) The funds are not contingent on the existence , proof,  or guarantee of a 1
 distribution agreement. 2
 (5) A production is not limited to feature -length films, television series, or 3
-commercials but can consist of short films, documentar ies, or other similar  4
+commercials but can consist of short films, documentaries, or other similar  4
 audiovisual works intended for distribution that meet the requirements of this 5
 subsection. 6
 (6) No grant may be awarded that, when considered together with other grants 7
@@ -160,8 +164,8 @@
 annual liability for grants awarded in a single calendar year to exceed the 9
 amount available in the Account." 10
 SECTION 2.  There is appropriated from the General Fund to the Department of 11
-Commerce the sum of one million five hundred thousand  dollars ($1,500,000) in nonrecurring 12
-funds beginning in the 2026 -2027 fiscal year to the Micro -Budget Productions Account 13
+Commerce the sum of one million five hundred thousand dollars ($1,500,000) in nonrecurring 12
+funds beginning in the  2026-2027 fiscal year to the Micro -Budget Productions Account 13
 established in Section 1 of this act for purposes consistent with that Account. 14
 SECTION 3.  This act becomes effective July 1, 2026, and applies to grants made on 15
 or after that date. 16