North Carolina Esports Production Incentives

Submit a complete application to the Secretary of Commerce at least 30 days PRIOR to the event/broadcast date; meet the minimum spending requirement of at least $150k in qualifying expenses per event; submit all the qualifying expenses for the production and data substantiating the qualifying expenses, including documentation on the net expenditure on equipment and other tangible personal property to an independent certified public accountant licensed in the State.

Qualified spend includes: goods and services leased or purchased in the state that are directly related to preproduction, production, and postproduction; the first $1 million of compensation paid directly or indirectly to each resident and nonresident on which North Carolina withholding tax has been remitted to the Department of Revenue (DOR); employee fringe contributions but not the employer share of payroll taxes; and per diem, stipends, and living allowances paid for work done in the state. All payments made to a loan out company for services provided in North Carolina are subject to 4% withholding. Qualified spend does not include costs for development, marketing, distribution, financing, and production insurance coverage related to the production. Qualifying costs incurred up to 30 days prior to actual event/production date and up to 7 days after the actual event/production may be considered eligible for the grant.

This program is not administered on a first-come, first-served basis. Priority will be given to productions that are reasonably anticipated to maximize the benefit to North Carolina as determined by the factors specified in the program statute. Esports event, defined as a scheduled form of multiplayer video game competition, particularly between professional players, individually or as teams, organized by an amateur, collegiate, or professional organization, institution, or association that is broadcast live or in a recorded format. An Esports event is not considered a live sporting event. North Carolina offers a rebate (grant) of up to 25% of qualifying expenses. The program may award up to $5 million each fiscal year (7/1 – 6/30) and there is not a limit (other than the $5 million award cap) on how much a single event may earn.