California’s film and television tax credits would be extended five more years if the State Assembly has its way, after a bill that would add an extra $500 million to the program was approved today by a 72-1 vote. The state Senate will vote on the legislation, enacted in 2009 to slow runaway production, later in the summer. “What we’re doing with this bill is retaining and creating jobs by leveling the playing field and making California competitive again,” bill co-sponsor Felipe Fuentes told the LA Times. An additional $100 million is set to be allocated for the fiscal year that begins July 1, the Times said, but of course that’s if a new state budget is passed by then — Gov. Jerry Brown’s proposed cuts are massive and could steamroll any proposed credit program; they also have generated serious pushback from both sides of the aisle. Also, a state budget has been signed into law only five times in two decades, according to Reuters, so who knows how long this could take. The California Film Commission, which administers the program, said that since the incentive was signed into law, its projects are responsible for $2.2 billion in direct spending within the state, including $756 million in wages paid to below-the-line crew.


Couldn’t the studios limit above-the-line salaries and achieve roughly the same results, without asking CA taxpayers to subsidize those luxe lifestyles? They are always bragging in the trades what big fat salaries they pay the actors, directors and so forth.
The California Film & Television Tax Credit does NOT apply to the wages paid to above-the-line talent. California does not subsidize them, it subsidizes the lifestyle of the working class men and women behind the camera.
Interesting to see how much democRats just love corporate welfare when it involves the people who bribe ….errrr…. “contribute” to them.
Otherwise, of course, it’s just evil and wrong.
As a result, California just might circle the drain a little bit slower for a month or two. Hooray.
i think they should not charge too much for movie tickets anymore. and don’t overpay for acting talents. demand for american movies is not as high as it used to be–because there are alternatives like TV, cable, internet piracy etc.
Has anybody ever received this or is it just CA bullshit?
A tax credit in California is like a fucking Jackalope.
Great News for the Film Industry. A lot of hard work to show why this was needed was put in. Congragulations to Amy Lemisch head of the California Film Commission and to all of guilds and locals who supported this. Robbie Goldstein
This is designed only for the studios. Most independent companies don’t have the huge tax credits that the corporate studios have so they normally don’t qualify. It’s terribly restrictive so most shows still go elsewhere. Schwarzenegger mistakenly thought this would help salvage his already horrible reputation but it was nothing more than a gift to the studios who finance his own projects.
The tax credit is real and has been given out for the past 2 years. It’s a very small amount, but if it can encourage more productions to stay in this state, it’s worth it. The problem isn’t the big salaries for the stars – it’s that multiple states (and other countries) offer incentives that make it more attractive to film there rather than here. There’s a reason that so much work has been going up to Canada – and it’s not because the studios just love the Canadian scenery. If they can make the same movie in Vancouver for less, why wouldn’t they make the movie there?
Taking the position that the studios should just pay the full tax rate since they can afford it means that the studios will continue to outsource the work. Which means that more and more film and television crews will continue to be unemployed.
If they are going to subsidize anything, it should be movie tickets. That would help average people as well as the studios.
The sad part about all this is the studios are still going to continue leaving CA to film elsewhere. As an above poster mentioned, this is just slowing down the drain, not stopping it.
just so you guys know the real issue is all the other states are doing the same thing right now —read this
http://www.taxcreditsllc.com/State-to-State_Comparison.pdf
and Canada even thou they are not suppose to give incentives to film there via the WEAK A– NAFTA agreement does from 10% for all spending to over 25% for all including pay and car rental hotel and expendables
but he real issue is that the base taxes in cali that support ( insert blank that you like )leaches and that workman’s comp is 11$ per hour per man hour worked –yep that’s right 11!!! I know payed that this month for my labors—
plus—-
they have to cough up more (about 10 per hour including vacation/holiday pay and retirement this used to be less) for the health and welfare plan because of the bank/wall street failures outta pocket because the revenue from tape/DVD fell off a cliff with the stock-market that backed the main plans costs
so the state has to pay up!! or they go all together somewhere else
The incentive actually works better for independents than for bigger studios, given that the numbers are fairly low. (It’s 100 million per year for the entire project, divided up among multiple films at I believe less than 10 million each). Incentives are available on a first-come basis, so they tend to run out very quickly at the start of the fiscal year.
We could certainly argue that the state could have provided more than this, given how much business is leaving, but it’s better than nothing.
And at the same time, there are columnists arguing that there’s no need to have any incentive and even that there’s no tangible benefit from having the TV and movie industry do their work here. I’ve seen this before – when a college town will argue that things would be better if the college weren’t there…
Last year I worked on an indie that spent over $9M on goods & services [read "purchases/rentals, wages, maufacturing costs"] that qualified for the CA Incentive. The resources are here in CA; without the incentive it’s quite likely that film’s $ would’ve been spent elsewhere. Almost everyone who gets paid for goods & services in CA pays taxes in CA, buys their groceries/etc in CA, helps the CA economy recover. a few hundred people would’ve had less work or perhaps no work in 2010 had it not been for this film.