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Thursday, Mar 28, 2024
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Bill Promises Enhanced Film Incentives

Feature movies of any budget size filming in California would qualify for tax credits under an expansion of the state’s incentive program for the entertainment industry. A bill introduced Wednesday by Assemblymembers Mike Gatto (D-Los Angeles) and Raul Bocanegra (D-Pacoima) would also extend the incentive program for five years and open it up to television pilots and new hour series regardless if they air on broadcast or cable or stream via the Internet. Expanding the program will make California more competitive with other states also offering television and film production incentives, Bocanegra said. “We simply can’t sit by and watch this $17 billion-a-year sector of our economy continue to leave California,” Bocanegra said in a prepared statement. “Every single economic analysis of the program shows that it’s a net economic generator for the state.” The bill will be referred to the Assembly Arts, Entertainment, Sports, Tourism and Internet Media Committee for a hearing this spring. The state’s production tax credit program began in 2009 as a response to television and feature films leaving California for other states and taking with them production associated jobs. The program is administered by the California Film Commission and funded for $100 million a year through the 2016-2017 fiscal year. Under the current guidelines feature films with budgets between $1 million and $75 million are eligible to apply for the 20 percent tax credit. The pending bill would remove the $75 million cap but only allows expenditures of up to $100 million as eligible. Also, a 20 percent tax credit is provided for productions taking place outside the 30-mile Los Angeles zone. The pending bill increases the amount to 25 percent. Los Angeles Mayor Eric Garcetti applauded the bill and called it a prudent investment in the future of California’s middle class.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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