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Friday, 15 August 2014 16:16

Proposed California Tax Credit Expansion Heads to Senate Floor

Written by  Thea Green
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BUSINESS BUSINESS

California’s near future may be seeing a dynamic surge in locally housed productions.

A $400 million proposal of expansion for California’s film and TV tax credit cleared the Senate Appropriations Committee with a vote of 5-0. Variety covered the developments on the bill, which is now headed to the Senate floor in a fight to keep productions and business in state.

Senator Kevin de Leon, chairman of the Appropriations Committee, is working to phase out the current lottery system in place for credits to ensure that the productions that stay in state are the ones that will create the most jobs. “When it comes to fueling an engine of job creation with taxpayer dollars, we have an obligation to ensure we are doing everything in our power to maximize their return on investment,” said de Leon. “This way – we can finally be assured – clearly and transparently — that California’s taxpayers are receiving the maximum possible economic return on this investment.”

The bill, which is likely to be headed to the desk of Gov. Jerry Brown, is seeing tremendous support, including that of Mayor Eric Garcetti, who believes the credit would bring Los Angeles close to New York’s numbers. The bill, AB 1839, would extend California incentives through 2021-22 and allow for bigger budget films and television shows to remain eligible, even adding in bonus incentives for the post process. 

Assemblyman Mike Gatto of Los Angeles and co-author of the legislation, believes this will up jobs in state, helping to keep families together and local. “I’ve heard from so many people over the past year who have told me about their family being torn apart because production left the state, he stated.” “This proactive effort ensures well-paying jobs stay in California and families remain together.” (Variety)

 

 

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