The Los Angeles City Council passed an ordinance Dec. 7 that will raise the entertainment production tax cap from $2.5 million to $5 million, reducing taxes for companies filming in the city, Councilman Richard Alarcón’s office announced. The ordinance will go into effect 30 days after Mayor Antonio Villaraigosa signs it. At least 535 small and medium-sized production companies will be able to take advantage of the tax breaks when they produce films, television and commercial productions within city limits. The city currently assesses tax liability on film production companies through a $145 flat fee for production costs up to $2.5 million, with $1.30 assessed for each additional $1,000 in production costs. The ordinance raises the cap for the flat fee to $5 million. The adjustment is expected to bring production companies more than $3,000 a year in taxes. “Today’s action by the city council will reduce taxes for hundreds of production companies and create one more incentive for productions to stay local, so we can ensure that their tax dollar stay in the City of Los Angeles,” said Alarcón, who introduced the motion in July. Jessica Vernabe
