California extends film, TV tax credits to get 5 years

The California State Assembly approved a bill on Tuesday to extend the state's film and television tax credits program for five more years, which would add an extra 500 million dollars in a bid to slow runaway production.

"By any measure, the program so far has been a tremendous success and should be extended," the bill's co-sponsor and assemblyman Felipe Fuentes said.

"With the state's unemployment rate hovering around 12 percent, we need this incentive to help keep hundreds of thousands of Californians employed. Extending this incentive program will prevent production companies from moving their projects, jobs and spending out of California."

The measure, named AB 1069 and which has been carried out for two years, will be handed over to the State Senate for vote later in the summer.

If the Senate approves the bill, the program will get another 500 million dollars in credits, which is aimed at stopping movies and TV shows such as ABC's "Ugly Betty" flying to other states.

"What we're doing with this bill is retaining and creating jobs by leveling the playing field and making California competitive again," Fuentes said.

The bill, which was launched in early 2009, has yielded 2.2 billion dollars in direct production spending in California so far.

According to statistics provided by Fuentes, 728 million dollars have been spent on wages for an estimated 25,700 below-the-line crew and 6,100 cast members, with additional 172,000 individuals have received daily employment as background extras.

More than 100 productions, including "No Strings Attached," "Faster" and "The Social Network," as well as ABC's "Ugly Betty," have been benefited from this program.

The measure offered a maximum 25-percent credit and a total of 500 million dollars in credits over a span of five years to hold production down in California, the home of Hollywood.

It has been criticized by some for being too restrictive, as it excludes movies with budgets over 75 million dollars and commercial shoots. But the measure is widely supported by unions and film industry officials in Los Angeles for helping to slow so-called runaway production.

However, compared with such measures put forward in other states in the United States, the incentives provided by the bill are relatively small. More than 40 states and New York City and Canada offer "substantial" financial incentives to the film industry to lure production and post-production jobs and spending away from California, Fuentes said.

Posted in: California extends film,TV tax credits to get 5 years