North Carolina Signs Game Dev Tax Break Into Law

North Carolina Signs Game Dev Tax Break Into Law

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North Carolina joined the ranks of regions like Canada today when its governor signed into law a games-industry-friendly bill that would offer a tax credit to all companies involved in the production of "digital media."

In the midst of the worldwide economic downturn, taxes are a big deal - particularly in our industry, and there especially in the light of the Canada vs. UK kerfuffle. Today brings good news to game developers in North Carolina, however, as Governor Beverly Perdue signed a bill into law that would provide economic incentives for all companies in the state involved in "interactive digital media productions."

When the bill goes into effect on January 1, 2011, NC-based companies "will receive a 15 percent tax credit on compensation and wages for employees" who are involved with making interactive digital media (read: videogames) or the engines and platforms that run such digital media (read: game engines). Governor Perdue signed House Bill 1973 into law today at the Cary, NC headquarters of Epic Games, creators of Gears of War and the popular Unreal middleware engine - a developer that fits both criteria.

Epic isn't the only developer in or around North Carolina's Research Triangle, either. The Triangle is home to companies like Tom Clancy developers Red Storm, a branch of Ratchet & Clank creator Insomniac, Matt Hazard makers Vicious Cycle and Atomic Games, the developers of the ill-fated Six Days in Fallujah and the anticipated downloadable title Breach. It's also the home base of The Escapist, so represent, guys. Represent.

"The passage of this legislation marks a significant investment in the future of North Carolina's interactive digital media industry," said Alexander Macris, president of the non-profit industry organization Triangle Game Initiative and publisher of The Escapist. "Our state is home to one of the largest concentrations of game development companies in the United States. These incentives will not only help keep North Carolina competitive on the national stage, it will produce compelling [Returns on Investment] for the state's graduates, skilled work force and research and development infrastructure."

Thanks to the presence of a number of highly-regarded universities like UNC and Duke - renowned for their academics as well as their basketball prowess - the Research Triangle is a prominent hub for tech corporations on the East Coast of the United States.

"Adding to the quality of life, creative class and top-notch technology community North Carolina currently boasts," said Wayne Watkins of Wake County Economic Development, "[We] now have targeted economic development tools that can help both existing companies as well as companies looking to relocate operations."

Congratulations, everybody.

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TIGA is so coming for you..

Who can blame them? ... its a simple act on their part which could affect the local economy alot more than they think. Good to see a smart choice out of government for once. Mind you I haven't read all the fine print yet ...

Good. Tax breaks increase economic activity. It may not immediately boost governmental incomes, but is an investment into the future as business grows. I'm glad to see somebody in government, state or federal, actually know basic Econ 101.

North Carolina?

Is this only for Deer Hunter games and anything where you can kill Democrats and Russian reds?

Hooray for the Escapist and Epic!

Yay them!

burntheartist:
North Carolina?

Is this only for Deer Hunter games and anything where you can kill Democrats and Russian reds?

No, it's for people who actually have the capability read full articles that list just a few of the many game developers in the state ;)

...Why the fuck my/our state so full of video game developers? Seems weird.

Anyway, yay for us! Whoo!

John Funk:

burntheartist:
North Carolina?

Is this only for Deer Hunter games and anything where you can kill Democrats and Russian reds?

No, it's for people who actually have the capability read full articles that list just a few of the many game developers in the state ;)

Sheep Molesters 5, Stars and Bars Flag Capture, Cousin Fu.. Well yeah, I knew Unreal was there. Kind of cool that the government has finally realized our only economic growth is in software and pornography.

And the Redneck Comedy Tour.

Rock Band: Jeff Foxworthy Edition with special guests Brooks & Dunn and Toby Keith.

Recognizing the economic importance of new sectors is an essential part of good public policy.

Or, in non-politics-speak, WOOOOOOO!

Congratulations, NC, on your continued progress away from redneck hell and into the modern world. Duke still sucks.

burntheartist:

John Funk:

burntheartist:
North Carolina?

Is this only for Deer Hunter games and anything where you can kill Democrats and Russian reds?

No, it's for people who actually have the capability read full articles that list just a few of the many game developers in the state ;)

Sheep Molesters 5, Stars and Bars Flag Capture, Cousin Fu.. Well yeah, I knew Unreal was there. Kind of cool that the government has finally realized our only economic growth is in software and pornography.

And the Redneck Comedy Tour.

Rock Band: Jeff Foxworthy Edition with special guests Brooks & Dunn and Toby Keith.

I get that you're trying to be funny, but given that The Escapist's HQ is in North Carolina, you might want to rethink the "y'all are hicks" line of jokes.

Great news for developers! ...Wish UK would have let our break into effect

w00t
so the Escapist gets a tax break? xD

wait...UNC and Duke? ewww no

That would be awesome... if it wasnt North Carolina.

Nothing wrong with the state, or the people in it. Its just that would be awesome to in 10 years have a "hollywood of gaming", but it is entirely too hot there for me to ever consider moving to.

Cmon North Dakota.. i know you can pull this off too :D

viranimus:
That would be awesome... if it wasnt North Carolina.

Nothing wrong with the state, or the people in it. Its just that would be awesome to in 10 years have a "hollywood of gaming", but it is entirely too hot there for me to ever consider moving to.

Cmon North Dakota.. i know you can pull this off too :D

I would really like to argue with you, but I'm too drained from yet another 100 degree day to do it.

North Carolina is the North of the South!

There's surprisingly few southern drawls in this area. So many out of towners come here for jobs in RTP's tech companies. And then there's all the students.

Oh sure, we get our share of Rednecks (although I'm pretty sure every area has backwoods people, Upstate NY sure did), and there's lots of less populated country areas, but it's not nearly as severe as one might think.

Kross:
North Carolina is the North of the South!

There's surprisingly few southern drawls in this area. So many out of towners come here for jobs in RTP's tech companies. And then there's all the students.

You forgot to mention Elon University!
Anyway, I would say this is a good thing, but I know nothing about the U.S. tax system, so I might be saying something silly.

Bev actually did something right?! Seriously? No joke?

*mind explodes*

She cuts Federal Aid for students but gives video games a tax break? Not voting for her in 2012.

Xan Krieger:
Bev actually did something right?! Seriously? No joke?

*mind explodes*

Holy shit she did. Thats a shocker, a very nice and welcome shocker but still a shock none the less. Oh and this is awesome cause I also am from NC so that makes it more awesome

Finally some positive news towards the gaming industry. It had to happen sooner or later, nobody can deny the power and rise of this powerful medium that I call my hobby. Amazing isn't it?

soapyshooter:
She cuts Federal Aid for students but gives video games a tax break? Not voting for her in 2012.

Wait, how can a state governor cut federal aid? Unless she's an ex-Senator or something I think you've got your facts mixed up.

Steve the Pocket:

soapyshooter:
She cuts Federal Aid for students but gives video games a tax break? Not voting for her in 2012.

Wait, how can a state governor cut federal aid? Unless she's an ex-Senator or something I think you've got your facts mixed up.

Low income students can apply for federal aid, part of that aid even though its called federal, comes from the state. In North Carolina its called the Education Access Rewards NC. Its roughly $3000 for low income students, its been cut by the state under her leadership. Thank god it doesn't affect me since I wasn't on fed aid but thousands of students might not be able to comeback this year. Seriously not voting for her ever again.

Kross:
North Carolina is the North of the South!

No, if it was really the 'North of the South' they'd be trying to tax the hell out of this incredibly successful industry so they could afford more state programs and bureaucrats. Zing!

anybody else think it should be house bill 1337?

Fuck yeah! It's nice to see NC finally getting some well deserved gaming publicity, and as for the tax break, well, about time.

Sweet!! This is great news for us NC natives. Wait.... did I just approve of something the government did?

Awesome. I wish the government here would do the same. *sigh*

Now all she(the governor) needs to do is what she promised and get Interstate 485 finished, and I'll overlook all the other bad decisions she has made.

Good for Business...hopefully good for games & decent software.

 

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