Games biz tax breaks for North Carolina
15% relief for digital firms in Epic's home state will attract more talent, says Capps
North Carolina has passed into law a new digital media bill, granting games firms a 15 per cent tax credit for all employees in the state.
The state's governor Bev Perdue signed off the bill at the headquarters of Epic Games, which has been based there since its shareware origins in the early 1990s. The studio is one of 14 developers and publishers in the state - who, combined, contributed $73.4 million to North Carolina’s economy in 2006.
The new law, known officially as House Bill 1973, grants companies tax relief on "the wages and compensation for employees involved in digital media production, or the creation of a platform or engine to run such media."
The bill comes just weeks after government scrapping of planned tax relief for the UK. North Carolina's assistance has been praised by various state luminaries.
"North Carolina is host to a growing hotbed of talented individuals working to develop cutting-edge game technologies and exciting new ways to experience entertainment, visualization and training software,” said Dr. Michael Capps, president of Epic Games.
"This law provides North Carolina with a tremendous opportunity to grow and develop our community into a world leader for information technology.”
Added Ryan Stradling, director of product development at Electronic Arts-North Carolina, "These incentives are important to creating new, high paying jobs that will attract the state’s best and brightest. By signing this bill, Governor Perdue will help North Carolina be more competitive in the digital media marketplace."
The Electronic Software Association also offered high praise for the new bill. "North Carolina is among states leading the charge to embrace computer and video games as a job engine and a magnet to recruit and retain talented artists," said the trade association's CEO Michael D. Gallagher.
"We applaud Governor Perdue and members of the North Carolina Legislature for taking action that will stimulate technological innovations and the state’s economy for years to come."
House Bill 1973 comes into force as of January 1, 2011.