Passing legislation in the California Legislature is always tedious what with all-night marathon sessions and hundreds of bills in a rush to pass before
lawmakers adjourn for the year. So it was semi-miraculous that the tax breaks for California film and TV production received the OK — even if it was scaled-back, pared-down legislation. After passage of Assembly Bill 1069 by the Senate early today, the extension goes to Governor Jerry Brown for pro forma signing. This continuation of California’s showbiz incentive program was cut down from 5 years to just one year by the state Senate Appropriations Committee. It’s not the hoped-for 5-year extension of the $100M-per-annum Film & Television Tax Credit Program. That time element could still be OK-ed next year, despite the state’s $9B budget shortfall, because of the need to halt runaway production and compete with other states offering similar or greater tax breaks to film/TV producers. The program has brought $3.8B in economic output and supported 20,040 jobs since its inception in 2009.
Editor-in-Chief Nikki Finke - tip her here.


Why does Hollywood refuse to pay its fair share?
Because Lib’s want to use others money and not their own. Free market is just something that gets in their way.
Why is it that Hollywood wants tax breaks for it’s self, but NOT for anyone else?
What’s that word? Oh yeah, hypocrisy.
I feel two ways about this. I agree with Bill and Mark that Hollywood celebs are always siding with the taxation for thee but not for me crowd, talk about supporting the workers and then pull work away from the country to wherever they can get a tax exemption or break.
But – I do think that when a film is made in an area there is a lot of spillover into the local economy that is very beneficial. Movie productions have to buy food, lodging, laundry, parking permits and assorted services that boost local economies. Plus – the US is a big country with a lot of diverse ‘looks’ – just hate looking at a movie that is supposed to take place in Boston or New York or Denver and have a few unit shots and that homogenized everytown look that comes from shooting in Vancouver.
I hate it when I recognize that a show is being shot in LA, Vancouver or Toronto when it is not supposed to be set there. Ah, the lovely mountains of Kansas, courtesy of Smallville. Some shows do a good job of disguise (Justified, Dexter) but I really appreciate it when they film where they are supposed to be (Breaking Bad). Places have a personality just like characters. You wouldn’t cast Rosanne Barr to play Don Draper, so don’t cast Vancouver to play San Francisco (which I really hope is not going to be the case with Alcatraz).
call it what you want, but these tax credits have significantly helped the local economy and have put thousands of Californians back to work. 2003-2008 were very difficult years for our film industry… saw a lot of friends move out of state to find work, saw a lot of businesses close their doors. so I hope they stay for 5 more years and beyond.
somebody explain to me how tax breaks for big oil and wall street help the national, state, or local economies?
The oil industry and Wall Street are major providers of jobs as well, this is one of the reasons why Texas and the New York City area have not been as badly affected by the recession as other parts of the nation.
Also, California isn’t exactly thriving; most of the tax benefits go right into the pocket of some fat millionaire Hollywood executive or help pay for his ex-wife’s botox injections.
Just ditch withholding and implement a VAT. It’s much more progressive (fair), loopholes are eliminated, wouldn’t need professionals to decipher the tax codes, and the state would capture tax revenue off the underground cash economy whenever that money is spent.
the tax incentives in other states have wrecked the california film community. my husband & i work as IATSE crew members and we have seen & felt the loss of los angeles based jobs to our fellow film workers and their families. i have worked on 3 feature films in the last two years that would not have been shot in california without the tax incentives. unlike many other states that are not creating long term jobs, film jobs that stay in california benefit not just the workers, but all the businesses where we spend our money. we are still losing films to other states that have bigger rebates, but california should do more not less, to protect hollywood jobs. i just spent 4 months away from my home and family – i don’t want to be a migrant film worker.