NC-415
Web                                      Tax Credit for Qualifying Expenses of a 
12-10
                                         Film or Television Production Company
                                               North Carolina Department of Revenue

       Return for Year Ended                   (MM-DD-YY) 
                                                                                                             FEIN or SSN  (No dashes)
Name (Individual’s name or entity’s legal name)

Address

City                                                          State    Zip Code
                                                                                                    Date Production Activities Completed 

Contact Person                                                Phone Number for Contact Person
                                                                                                                    (MM-DD-YY)

    Fill in the circle that corresponds        Individual (D-400)      C-Corp (CD-405)                   Partnership (D-403)
    to the tax form you led:                   Estate or Trust (D-407) S-Corp (CD-401S)

Part 1.  Production Information

Number of people employed in North Carolina with respect to the production

  Enter the name and a description of production                       List all North Carolina counties used as sites in the production

Part 2.  Computation of Credit for Qualifying Expenses of a Production Company

1.   Total qualifying expenses spent in North Carolina for goods leased or purchased 
                                                                                                                    ,       ,                        .00
2.   Total qualifying expenses spent in North Carolina for services leased or purchased
                                                                                                                    ,       ,                        .00
3.   Total qualifying expenses spent in North Carolina for compensation and wages paid 
     (Do not include amounts in excess of $1,000,000 paid to a highly compensated individual.)
                                                                                                                    ,       ,                        .00
4.   a.  Employee fringe contributions
                                                                                                                    ,       ,                        .00
     b.  Other qualifying expenses
                                                                                                                    ,       ,                        .00
5.   Total North Carolina Qualifying Expenses
                             (If $250,000 or less, stop here; you are not eligible for the credit.)                 ,       ,                        .00
     Add Lines 1 through 4b
6.   Credit for Qualifying Expenses of a Production Company
     Multiply Line 5 by 25% (.25) and enter amount here; do not exceed $20,000,000 for a production that 
     is a feature lm.                                                                                               ,       ,                        .00

Part 3.Certication
I certify that the taxpayer ling Form NC-415 meets the requirements for claiming the tax credit and that the information given is, to the best of my 
knowledge, accurate and complete.

Signature of Taxpayer or Authorized Agent                                                                Date
              MAIL TO:  North Carolina Department of Revenue, Central Exams, Corporate Group Manager,
                                                PO Box 871, Raleigh, North Carolina 27602

 Page 2
NC-415
    Web                                            General Information
 12-10
This form is used to calculate the amount of income tax credit for qualifying expenses of a production company and should only be used 
for taxable years beginning on or after January 1, 2011.  The credit is calculated on all of the taxpayer’s qualifying expenses incurred in 
this State in connection with a production, including  expenses incurred in earlier years.  The tax credit must be claimed in the taxable 
year in which the production activities are completed.  If more than one production is completed during a taxable year, a separate Form 
NC-415 must be led for each production. The information below does not cover all provisions of the law.  For more information, go to the 
Department’s website, www.dornc.com, and select “Tax Professionals”.

Eligibility. A production company that has qualifying expenses of                Qualifying expenses for goods.  Spending for goods 
at least two hundred fty thousand dollars ($250,000) with respect                 purchased or leased from North Carolina businesses 
to a production is allowed a credit against income taxes equal to                 is eligible for the tax credit.  This includes fuel, food, 
twenty-ve percent (25%) of the production company’s qualifying                    airline tickets and other goods if purchased or leased 
expenses.                                                                         from a business located in North Carolina.
Due date.To be eligible for the tax credit, the production company               Qualifying expenses for services      . Spending for 
must le Form NC-415 with the Department of Revenue by the due                     services is eligible for the tax credit, regardless of 
date of the income tax return for the taxable year in which the                   whether paid to residents or nonresidents, if the 
production activities are completed.  If the taxpayer is granted                  services are performed in North Carolina.  The amount 
an extension of time to le its income tax return, the due date for                paid to an individual through a personal services 
Form NC-415 will be extended to correspond with the extended                      corporation or an employee leasing organization 
due date of the income tax return.  Processing of the credit cannot               is subject to the “highly compensated individual” 
begin until after the income tax return for the taxable year in which             limitations in calculating the allowable credit.  
the production activities are completed is led.   
                                                                       2. Compensation and wages on which withholding 
Taxpayers must claim the income tax credit for qualifying expenses        payments are remitted to the Department of Revenue.
on Form NC-415.   Any tax liability for the tax year in which the tax     Compensation and wages paid to employees for services 
credit is claimed must be paid to the Department of Revenue before        performed in North Carolina on which withholding 
the tax credit can be processed.  Important.  A pass-through entity       payments are remitted are eligible for the tax credit 
that qualies for this credit does not allocate the credit among its       regardless of whether paid to residents or nonresidents.   
owners as is the general rule for credits earned by pass-through          The amount paid to an individual through a personal 
entities.  Instead, the pass-through entity is considered the taxpayer    services corporation or an employee leasing organization 
for purposes of claiming the credit.                                      is subject to the “highly compensated individual” limitations 
                                                                          in calculating the allowable credit.
Limitations.  The amount of tax credit allowed for a production that 
is a feature lm may not exceed twenty million dollars ($20,000,000).   3. The cost of production-related insurance coverage 
There is no maximum credit for other types of productions. No credit      obtained on the production.     Expenses for insurance 
is allowed for the following types of productions:                        coverage purchased from a related member are not 
                                                                          qualifying expenses.
   Political advertisements.
                                                                       4. Employee fringe contributions.
   Television productions of a news program or live           
    sporting event.                                                    5. Other expenses.       Per diems, stipends, and living 
                                                                          allowances paid for work being performed in the State.
   Productions that contain material that is obscene, as                
    dened in G.S. 14-190.1.                                            Highly compensated individual  - An individual who directly 
                                                                       or indirectly receives compensation in excess of one million 
   Radio productions.                                                 dollars ($1,000,000) for personal services with respect to a single 
                                                                       production.  An individual receives compensation indirectly when 
Substantiation.  Taxpayers claiming this credit  must maintain and     a production company pays a personal service company or an 
make available for inspection any information or records required      employee leasing company that pays the individual.
by the Department of Revenue.  The burden of proving eligibility 
for the credit and the amount of credit rest upon the taxpayer.        Production company - A person engaged in the business of making 
The Department of Revenue may consult with the North Carolina          original motion picture, television, or radio images for theatrical, 
Film Ofce of the Department of Commerce and the regional lm            commercial, advertising, or educational purposes.
commissions to determine the amount of qualifying expenses.   
Qualifying expenses subject to audit before credit is allowed.         Feature lm - A movie made for initial distribution in theaters that 
                                                                       is over 40 minutes long.
Denitions.  The following denitions apply:
                                                                       Live sporting event - A scheduled sporting competition, game, 
Qualifying expenses - The sum of the following amounts spent in        or race that is originated solely by an amateur, collegiate, or 
this State by a production company in connection with a production,    professional organization, institution, or association for live or tape-
less the amount in excess of one million dollars ($1,000,000) paid     delayed television or satellite broadcast.  A live sporting event does 
to a highly compensated individual:                                    not include commercial advertising, an episodic television series, a 
                                                                       television pilot, a music video, a motion picture, or a documentary 
    1. Goods and services leased or purchased.  For goods              production in which sporting events are presented through archived 
       with a purchase price of twenty-ve thousand dollars             historical footage or similar footage taken at least 30 days before 
       ($25,000) or more, the amount included in qualifying            it is used.
       expenses is the purchase price less the fair market value 
       of the good at the time the production is completed.            Related member - See G.S. 105-130.7A.