MUMBAI: The Shane Black-directed Iron Man 3 will be in North Carolina, says Marvel Studios.

The studio had sought to film the superhero sequel at Michigan‘s Raleigh Michigan Studios but wanted between $20 million and $30 million as incentives. But, because of a cap implemented on film incentives earlier this year by the Michigan state government that any film incentive more than $25 million would have to be brought before the legislature, the shoot there was cancelled.

Ultimately, the studio decided to shoot the film in North Carolina. The film starring Robert Downey Jr. is expected to be released in May 2013.