The Motion Picture Association of America and SAG-AFTRA today commended Gov. Jerry Brown for signing into law a two-year extension of California’s $100 million a year film and television tax credits. Read their statements below:
“The state of California took a big step forward today, thanks to Governor Brown and the legislature,” said Senator Chris Dodd, Chairman and CEO of the Motion Picture Association of America. “The two-year extension of the state’s production tax credit will keep California competitive for tens of thousands of production-related jobs. This is an important victory for California’s economy, our national economy, and the hardworking men and women who comprise the film and television industry.”
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Governor Jerry Brown today signed legislation granting a two-year extension of California’s $100 million-a-year film and television tax credit program, which now will run until July 2017. Today was the deadline for Brown to sign the nearly identical Assembly and state Senate bills. Currently dispensed under a lottery system, California’s program was first introduced in 2009 to help stem the runaway production to other states with more generous incentives and lower costs. A total of 28 projects won a piece of the up to 25% tax credit program this June.
The Governor’s signing today comes after a summer in which lawmakers in Sacramento debated the effectiveness of the incentive, especially against the backdrop of the cash-strapped state budget. A study last year by the Los Angeles County Economic Development Corp fund estimated that in its first two years the state tax credits program generated more than $3.8 billion in economic output, supported more than 20,000 jobs and returned more than $200 million to state and local governments in taxes. Some, while supportive of the credit program, doubt that enough time has passed to yet gauge it’s effectiveness. “I think you need to have a full three-year cycle and then do the analysis in the 12 and 24 months following on a new tax-incentive program like California’s,” said an industry insider. “It takes time to see the change because you are not just trying to change how many productions you can keep or have but ultimately you are trying to change migration patterns. You’re moving a glacier.” Others think California has to get much more aggressive to keep Hollywood at home. “The next round would be to double down and to make the process easier,” says a studio number crunching source. “The pot is too small and the lottery system is too random to be able to rely on, that’s what still driving production out of state.”
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First, the 2-year extension of California’s $100 million annual film and television tax credit program passed the full state Senate. Then it had to pass the Assembly by midnight tonight when this legislative session ends. It did. Now AB 2026 and SB … Read More »
An extension of California’s $100 million annual film and television tax credit program leaped through another legislative hurdle today. With a 32-3 vote in Sacramento, the state Senate approved extending the program two more years. The measure, … Read More »
Justified, Teen Wolf, Pretty Little Liars and Body Of Proof are among the 28 projects picked by lottery to receive tax credits from the California Film Commission’s $100 million allocation, the commission revealed today. The basic breakdown: 10 film productions and 18 TV productions will receive credits. The commission says 53.5% of the projects were independent and 46.5% were studio-based. It estimates the projects will spend more than $683 million in California, including nearly $265 million in qualified wages.
Related: Will ‘Body Of Proof’s California Production Tax Credit Win Help Secure Back Order?
The selected projects, which could change based on schedules and other production-delay issues, will mean employment for about 2,800 crew members, an estimated 2,900 cast members, and 57,000 extras/stand-ins. (UPDATE: The Hollywood guilds have come out with a pro-tax credit statement praising the lottery results; see their statement below.) The commission received 322 applications for this year’s production tax credit lottery by Friday’s 3 PM deadline. It will continue to accept applications for placement on the waiting list. Here’s the breakdown of today’s winners, followed by the projects by name: Read More »
UPDATED 7PM: The California Film Commission completed its production tax credits lottery this afternoon and of 322 projects submitted today, 28 were selected to receive credits before this year’s $100 million total allocation runs out. Other qualified applicants go on a waiting list. The number of projects submitted this year approached double last year’s number. On the first day of last year’s application period, 177 projects were submitted and 27 were selected to receive the credits. Ultimately 74 projects received tax credits from last year’s $100 million allocation. The increase came from the large number of smaller independent projects that moved from the waiting list to be awarded credits as larger projects withdrew.
Today’s figures are subject to change as the commission reviews the applications. More information will become available Monday afternoon about the estimated total spend by approved projects, estimated wages, the number of cast and crew members employed and breakdown by production type — feature vs. TV, studio vs. independent.
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A bill in Sacramento that would extend California’s Film and Television Tax Credit Program by an additional five years cleared another hurdle today, when AB 2026 passed out of the California State Legislature’s Arts & Entertainment Committee. The bill is … Read More »
On-location shooting in Los Angeles and other local jurisdictions grew 4.2% year-over-year in 2011, permit coordinator FilmL.A. announced today. The bump came despite what the nonprofit organization called a “disconcerting trend” in TV production: a 2.7% annual drop in the … Read More »
Gov. Jerry Brown signed a bill late last night that adds one year to the California Film & Television Tax Credit Program. Assembly Bill 1069 had been pared down from its original language that sought a five-year extension. … Read More »