Gov. Jerry Brown worked out a deal with the Legislature on Wednesday that would more than triple funding for California’s film and TV tax-credit program to stem runaway production. The agreement on AB 1839 increases the tax credit to $330 million a year for the next five years. While falling short of the $400 million approved by the Senate Appropriations Committee two weeks ago, the agreement between Brown and legislative leaders is substantially more that the current tax credit of $100 million. In the last 15 years, film production has dropped nearly 50 percent in California. In 2013, 21 of the 23 new prime time series were filmed outside of California. “This law will make key improvements in our Film and Television Tax Credit Program and put thousands of Californians to work,” Brown said in a prepared statement. The bill, which is expected to be approved by the Senate this week, is an attempt to win back some of those losses. Valley area Assemblymen Mike Gatto, D-Los Angeles, and Raul Bocanegra, D-Pacoima were the main sponsors of the bill. Bocanegra called the agreement on the bill a home run for the film and television industry, “This expanded and improved program will go a long way towards making California more competitive and ultimately will protect and create tens of thousands of jobs for hard working Californians,” Bocenegra said in a prepared statement. The Valley Industry & Commerce Association was among the leading backers of the effort to raise the subsidy. Stuart Waldman, president of the Van Nuys business advocacy organization, noted that the tax credit program benefits not studio higher-ups but middle-class salaries. “That’s money that’s invested directly back into the community,” Waldman said in a prepared statement. The bill would provide credits to productions starting in 2016 and running through 2019. The current entertainment tax credit program, which began in 2009, disperses its funds via a lottery system operated by the California Film Commission. The lottery will be terminated under AB 1839 and productions would be chosen by the number of new net jobs created and total economic impact. The bill also would open the program to feature films of any budget size, television pilots and new hour-long series regardless if they are on broadcast TV, cable or the Internet. It also would increase to 25 percent, from 20 percent, credits to productions filming outside the 30-mile zone centered in Los Angeles.
