Governor Announces $330M Tax Credit For California Film, TV Industry
LOS ANGELES (CBSLA.com) — Gov. Jerry Brown has announced a bipartisan $330 million deal to boost funding for California film and television tax credit program over the next five years, according to officials.
The current film tax credit awarded using a statewide lottery allows the California Film Commission to allocate up to $100 million of income tax credits a year to certain kinds of productions made in California, Brown's office said.
Under the new tax credit program, the lottery system would be eliminated and applicants will instead be ranked according to net new jobs created and overall positive economic impacts for the entire state starting in fiscal year 2015-16, officials said.
In a statement, Assembly Speaker Toni Atkins: "Not only does extending the Film Tax Credit keep cameras rolling in California, it will keep costumers designing, craft services catering, and carpenters hammering. It's just common sense – when California hosts more production, we get more jobs and more revenue – two things our state can always use."
In the past 15 years, film production has dropped nearly 50 percent in California, according to state data. In 2013, 21 of the 23 new prime-time series were filmed outside California.
Paul Audley. the President of FilmLA, the nonprofit organization that issue film permits in the city and county of Los Angeles, told KNX 1070 NEWSRADIO said the move could lead to a return of film industry-related jobs back to the state.
FilmLA Pres. Paul Audley
"We also know that for every job that's out there in the film industry, there are 2.7 other jobs that depend directly, so we're talking about the potential for jobs coming back in the tens of thousands to California," said Audley.
The legislation, AB 1839, which was authored by Los Angeles Democratic Reps. Mike Gatto and Raul J. Bocanegra, also had support from Los Angeles Mayor Eric Garcetti, who helped lead a statewide coalition of policymakers and business leaders to push for entertainment legislation and created the city's first-ever Mayor's Office of Motion Picture and Television Production.
Garcetti said it's all about restoring Hollywood to its rightful place in show business.
"The heart and soul of the entertainment industry are the artisans, craftspeople and tradespeople who you never see on screen, and that's who will benefit from this legislation," he said. "We are the entertainment capital of the world and this legislation will make sure it stays that way."
If signed by the governor as expected, the tax credit will take effect fully in July.
