A study of the impact of California’s Film and Television Tax Credit program shows that it has generated more than $3.8 billion in economic output and supported 20,040 jobs — good for labor income of $1.4 billion — in the state since being enacted in 2009 to curtail runaway production. The report, released today by the Los Angeles County Economic Development Corp, estimates that the activity will return to state and local governments $201 million; for every tax-credit dollar allocated under the program at least $1.13 in tax revenue will be returned, total economic activity in the state would increase by $20.11 and labor income would grow by $7.41. The LAEDC used numbers from the program’s first 77 approved productions, which received credits totaling $198.8 million from expenditures totaling $970 million. They include 34 feature films, which snapped up more than three-quarters of the program’s allocated credits, 22 indie films and six new TV productions (the credit is only applicable to new — not existing — TV projects). The report is timely: California Gov. Jerry Brown has asked for major cuts in such programs to help pass a state budget that would close a $9.6 billion deficit. After a compromise with state Democrats earlier today, a new budget could be voted on as early as tonight ahead of a July 1 deadline.
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This article was printed from http://www.deadline.com/2011/06/study-californias-film-and-tv-tax-credit-program-paying-off-economically/
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