A new report issued Thursday on runaway film and television production in California recommends the state increase the amount of its tax incentive program, allow big budget features to apply for the tax breaks and expand the program to include visual effects costs.

The 42-page report from the Milken Institute, a Santa Monica think tank, concluded that California should not try to keep pace with states offering better filing incentive packages, as it’s a game the state “can’t win...

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