S1394 - Interactive Digital Media Credits

• Enacts tax credits for companies producing interactive digital media in North Carolina, effective for taxable years beginning January 1, 2011, with the program expiring for taxable years beginning January 1, 2014.

• Allows a 15% production credit on qualifying expenses (minimum $100,000) including production property and employee compensation, capped at $7.5 million per production.

• Provides a headquarters credit of $5,000 per new full-time job created (minimum 20 jobs within 24 months), with a maximum cumulative credit of $500,000 per taxpayer.

• Excludes from credit eligibility gambling or casino games, academic projects, internal productions, political advertising, obscene material, and static information websites.

• Requires taxpayers to notify the Department of Commerce with a $500 fee and maintain records for verification; credits can be applied against franchise tax and income tax, with unused credits carried forward up to eight years.