While Texas Gov. Rick Perry bragged about his state's financial incentives for game developers during yesterday's E3 keynote, legislators in North Carolina have apparently abandoned the idea of game biz tax breaks - again.
As reported by the Independent Weekly, North Carolina-based developers such as Epic, Red Storm and Destineer will be getting no love from the state government:
Though tax incentives from the Canadian government helped Montreal attract numerous major game companies, efforts in N.C. have proven unsuccessful. In a recent session of the General Assembly, House Bill 2509 called for tax credits for producers of "digital interactive media" in its first draft. By the second draft, the "digital interactive media" section had been gutted... There is no mention of the video game industry.
The bill was introduced by state Rep. Pryor Gibson, a Democrat... He adds that he's been working closely with game companies to help develop future bills for incentives.
As GamePolitics reported in August, 2006, a similar measure, also introduced by Rep. Gibson (left), failed to clear legislative hurdles.
Comments
Business incentives are thorny issues in NC right now...after the Google and Dell incentive controversies, it's not surprising that this happened.
Explain please. I am not familiar with that controversy.
E. Zachary Knight
www.editorialgames.com
Oklahoma City Chapter of the ECA
MySpace Page: http://www.myspace.com/okceca
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The Dell incentives weren't so bad (added a decent amount of jobs), but a conservative foundation challenges pretty much every incentive passed on general principle, and the dell concessions were pretty big. The google incident on the other hand was bad. Google put a server farm in NC, but only after basically robbing the state blind for something that pretty much did crap in terms of added value to the community (job creation was virtually nil, and secondary job creation was nil)...plus the entire process was done behind close doors without any knowledge to the public. Google threatened to pull out if there were any leaks. Basically put a damper on any major incentives for a little while.
And yes, Epic is based in Cary, NC.
Sounds like Google isn't so innocent after all.
E. Zachary Knight
http://www.editorialgames.com
Oklahoma City Chapter of the ECA
MySpace Page: http://www.myspace.com/okceca
Facebook Page: http://www.facebook.com/profile.php?id=1325674091
I don't know...I grew up near Lenoir, NC (where Google's new data center is located), and it's still a pretty big deal to the local community. While there are a few tech jobs in nearby Hickory, long-term this appears to be a real boon to the overall area and I think the investment will eventually pay off there (even if most don't see that currently).
Isn't Epic located in NC? I thought there was a couple of big establised houses there already.
Too bad they are abandoning it. I think it was expected though.
There are just too many politicians who don't look at the games industry seriously.
E. Zachary Knight
www.editorialgames.com
Oklahoma City Chapter of the ECA
MySpace Page: http://www.myspace.com/okceca
Facebook Page: http://www.facebook.com/profile.php?id=1325674091
From my understanding, North Carolina officials handed nearly $282 million in incentives to Dell, and a $165 million package to Google, which appears to have been overly optimistic, even naive, in terms of the promised future returns on job growth and tax revenue increase. Sounds like they got burned badly, and I can understand why they may be overly cautious in terms of approaching other industries with big incentive deals especially with taxpayer complaints and lawsuits.
I think it would be in Epics best interest to have that bill not passed. The less game companies in NC, the less they have to compete for local and surrounding talent. I'm also pretty sure Epic doesn't need the money from the proposed incentives.
Additional game companies in a region or "community" means a larger pool of employees for all to work with. Epic, as a AAA title AND engine developer is not likely to lose employees to competitors in the region -- unless they are splinter companies formed by employees actually leaving to make their way on their own. Smaller companies, the kind most likely to benefit from incentives, bring new blood and talent into the community. That talent often stays in the area, moving between developers. The more developers, the larger the pool, the better a region is for setting up a new studio ... or staying employed in the biz without having to pull up stakes and move to a new region when a job change has to occur.
... and quite often, splinter companies act as service bureaus, or outsource resources for their original employers. That happened and continues to happen a lot here in the Dallas area.
Insomniac is opening up an East Coast office in North Carolina at this very moment. This development must be disappointing for them.
Go dems!