Study: Tax Incentives Stem Fleeing Film Production

   BURBANK, Calif. (AP) -- Tax incentives to keep movie and television production from leaving California have created more than 20,000 jobs and pumped nearly $4 billion into the state's economy since 2009, a study released Tuesday concluded.

   The Film and Television Tax Credit Program gives $100 million a year in tax credits to Hollywood producers, and the Los Angeles County Economic Development Corp. calls it a resounding success.

   Assemblyman Felipe Fuentes, Los Angeles Councilman Paul Krekorian and ABC-TV "Body of Proof" executive producer Matthew Gross were on hand outside the show's Burbank set Tuesday to release the economic impact study.

   "Body of Proof" producers, who recently moved production back to California because of the tax credit program, said the show expects to spend more than $43 million and create at least 200 jobs in the coming year.

   "By creating tens of thousands of jobs and pumping billions into our economy, this program has truly been a statewide economic stimulus package," Fuentes said.

   More than 40 states, New York City, Canada and others offer financial incentives in a bid to lure the film and television industry away from California.

   "We must be willing to fight to keep the film and television production that is such an inextricable part of our identity, our history and our economy," Krekorian said in a statement. "We must never allow the day to come when we look up at the Hollywood sign on the hill and realize that Hollywood is no longer here."

   The California Film and Television Tax Credit Program is currently scheduled to end in fiscal year 2013-14. The last credits will be allocated by July 2012.

   Fuentes is sponsoring a bill, AB 1069, to extend the tax credit program an additional five years. The bill passed the Assembly by a 77-1 vote and awaits a hearing in the Senate.

   "With the state's unemployment rate hovering around 12 percent, we need this incentive to help keep hundreds of thousands of Californians employed. Extending this incentive program will prevent production companies from moving their projects, jobs and spending out of California," Fuentes said in a statement.

   So far, $300 million in tax credits has been allocated to eligible film and television productions. The program specifically targets productions that are the most likely to leave the state due to incentives being offered in other states and countries.

   (Copyright 2011 by The Associated Press.  All Rights Reserved.)