North Carolina senators focused on cutting spending and raising taxes to balance the state's budget have approved cutting taxes for Hollywood.
The Senate voted 27-17 on Wednesday to raise the tax credit film and television production companies get on their North Carolina spending from 15 percent to 25 percent.
The measure now heads to the House.
Supporters like Democratic Sen. Linda Garrou of Guilford County said the tax break would draw more productions to North Carolina, resulting in added sales and hiring.
Garrou said the overall spending would be more than the tax revenues lost, an argument supported by legislative fiscal analysts.
Republicans noted Federal Reserve Bank of Boston studies that productions stimulate little added economic activity.