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Wednesday, 17 August 2016 20:44

Are Big Budget Films Back in California?

Written by  P3 Update
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It appears Hollywood is making strides to bring back major feature productions.

But, is it enough? The new and improved tax-incentive program dubbed 2.0, which replaced the $100 million-per-year incentive plan with a plan that raises that credit to $330 million each year has made a difference but there is still room for more.

For instance, Disney is among some 28 projects approved to take advantage of the program as they greenlighted the sci-fi fantasy “A Wrinkle in Time” to shoot in California.

This is good news for California. However, 2.0 caps the amount of a movie’s budget that can earn tax credits at $100 million so the state is missing out on the larger $250 million blockbusters like “Captain America: Civil War” and “Batman v Superman: Dawn of Justice.” A recent piece in The Los Angeles Daily News offered some perspective on the California Tax incentive program and how it compares to some thriving cities that offer more, such as Atlanta.

“The largest movies are not being shot in California,” said Paul Audley, president of FilmL.A., the official film office for the city and county of Los Angeles in the article. “Our tax credit program capping at $100 million still has encouraged the biggest films to seek out states and countries that have no cap, like Great Britain. While the credit is returning extraordinary value and jobs, it is unable to attract the biggest live-action films.”

“[2.0] created a situation where we now have a number of feature films that are just starting to be produced here,” noted Ed Duffy, vice president and business agent for North Hollywood-based Teamsters Local 399. “They are good-sized feature films. Though I think the incentives are going to have trouble attracting back the big tentpole picture, if you have a picture that costs $125 million or something like that, [that] is a pretty healthy picture.” (The Los Angeles Daily News)

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