Hollywood Tax Credit Would Offer $330 Million A Year In Credits For Producers

SACRAMENTO, Calif. (AP) - California lawmakers have approved legislation to extend additional tax credits to Hollywood film productions, sending the bipartisan legislation to Gov. Jerry Brown for his signature.

The compromise deal was brokered by the Democratic governor with legislative leaders from both parties. It will offer $330 million a year in credits to producers through a competitive bidding process and last for five years.

Los Angeles lawmakers had pushed to replace the current $100 million tax credit, which operates on a lottery system, as other states increasingly offer bigger incentives to lure film and TV production.

The Assembly and Senate approved AB1839 by Democratic Assemblymen Raul Bocanegra and Mike Gatto of Los Angeles late Friday.

Gatto says "it's impossible to quantify the value" of the movie industry to California.

Copyright 2014 The Associated Press.