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North Carolina Governor Signing Digital Media Bill
North Carolina Governor Signing Digital Media Bill
July 22, 2010 | By Kris Graft

July 22, 2010 | By Kris Graft
More: Console/PC

North Carolina Governor Beverly Perdue on Thursday signed into law a game industry-friendly bill that will grant tax incentives to interactive digital media productions in the state beginning January 1, 2011.

Under the bill, next year digital media companies will receive a 15 percent tax credit on compensation and wages for digital media production employees. The credits also apply to employees who work on a digital media engine or platform.

One North Carolina company that is both a creator of games and game engines is Gears of War and Unreal Engine 3 developer Epic Games, based in Cary. The studio will host the governor, industry executives and other politicians who will witness the signing of House Bill 1973.

Epic Games president Mike Capps told Gamasutra in an email that the measure could help his studio attract more talent. "The law contains a number of economic development incentives, including tax credits for developing interactive digital media. These economic incentives will not only help us make higher quality products, it will help us attract the best talent for making them."

He added, "But we hope the primary impact will be to draw new digital media companies to the Tar Heel state. After all, we like having lots of game developers here! A healthy local ecosystem is good for our business, and we like the idea of more gamers here to join our LAN parties and to play tabletop RPGs with."

Non-profit North Carolina game industry trade group Triangle Game Initiative welcomed the bill's signing. "The passage of this legislation marks a significant investment in the future of North Carolina's interactive digital media industry," said Triangle Game Initiative president Alexander Macris in a statement.

He added, "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 ROI for the state's graduates, skilled work force and research and development infrastructure."

Other video game developers with operations in North Carolina include Ubisoft subsidiary Red Storm, Vicious Cycle, Insomniac Games and Atomic Games.

Wake County Economic Development project manager Wayne Watkins said that with the new incentives, the state now has "targeted economic development tools that can help both existing companies as well as companies looking to relocate operations."

[UPDATE: Added comments from Epic president Mike Capps.]

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Corbin Supak
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NC, 2008 election

Barack Obama Dem 2,123,390 49.9%

John McCain GOP 2,109,698 49.5%

And here's an Oregon media industry benefit for you.

Can you get much bluer than Oregon?

Ben Lippincott
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I'll have to disagree that this has anything to do with democrats or republicans. It's more about trying to lure new businesses to the area in a field that has proven to be beneficial to the state's economy. North Dakota has long been a part of the New Homestead Act offering tax breaks and tuition reimbursement to recent graduates who move into the state and reside there for a certain span of time. This is more a top down approach of the same thing, both of which are welcome bait to lure in new residents.

Shawn A
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Corbin...thanks for your idiotic post.

States like California should take businesses are leaving in droves because they are overtaxed to pay for the corruption of the State Governments. NC and Texas have it right, leave business alone. Don't over regulate it and over tax it.

Tom Franklin
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Not to throw fuel on the idiotic fire, but

a. Bev Perdue is a Democrat

b. Obama won NC

c. 99% of game development in the state happens in the RTP area, a predominantly blue population (oddly corresponding with one of the highest PhD. per-capita in the nation)

Shawn A
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So because Obama won NC in 2008 against the lamest of automatically makes NC a "blue" State? Mmmmmm....goooood kool aid.....

Shawn A
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"99% of game development in the state happens in the RTP area, a predominantly blue population (oddly corresponding with one of the highest PhD. per-capita in the nation) "

and has the highest concentration of people from New England in the State...that has more to do with it being more liberal than how smart people are there. Too bad we cant all be as smart and enlightened as Tom.

John McMahon
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Well...there's a lot of positivity here. As a resident of NC, I am glad to see this. I hope this attracts more companies to the area.

Stephen Hodgson
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As a long time resident of NC, its amazing how quickly the RTP area has grown in the last 5 years alone. This bill is awesome news, because now I can graduate, go back home, and hopefully find a nice publisher to work with for awhile.

Matthew Mouras
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As a former resident of Chapel Hill, I wish I had never left!