Film tax credit bill unanimously passes California Assembly

SACRAMENTO Calif. Wed May 28, 2014 9:24pm EDT

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SACRAMENTO Calif. (Reuters) - A bill to lure filmmakers into California with tax incentives passed unanimously in the state Assembly on Wednesday, bringing the state a step closer to extending and increasing existing tax credits for the entertainment industry.  

Certain television shows, major feature films and independent films would have access to a larger pool of increased tax breaks under the measure, which has received bipartisan support since it was proposed in February.

Republican Assembly member Scott Wilk, who co-authored the bill, has promoted the measure as a way to create and retain jobs by sweetening the pot for the film industry, which he said has been migrating outside of California since the late 1990s because of better tax credits offered elsewhere.

“The expansion of the film tax credit is a necessity to keep the iconic film industry in our own backyard,” Wilk said. “This unique industry will continue to serve as an economic resource as long as we support the industry and keep California competitive.”

The film tax credit bill, which now heads to the state Senate, would add a five-year extension to an existing tax credit program for the film industry at large, called the California Film and Television Job Retention Act.

Under existing law, certain filmmakers and TV show producers in California can apply for tax credits of 20 percent through a lottery system that had been due to expire at the end of the 2015 fiscal year.

The measure that passed the assembly on Wednesday would extend those existing tax credits for another five years while also offering an additional 5 percent tax credit to production companies that relocate to California from outside the state.

It would add an additional 5 percent tax incentive for films shot outside of Los Angeles to give those areas an economic boost. It would also make it easier for filmmakers to qualify for an incentive overall by requiring only 75 percent of filming to be done in the state, rather than 75 percent of production.

The California Film Commission would be in charge of dispensing and administering the tax credits program. An analysis of the bill says the tax breaks would result in the loss of hundreds of millions of dollars from the state’s budget each year.   

The measure comes a day after Wilk, along with other lawmakers whose districts are mostly in or around Los Angeles County, voted against a bill requiring actors in pornographic films to wear condoms during sex scenes.

A trade group for the pornography industry warned that the condom bill would drive the industry out of the state. Wilk's district encompasses the northern part of the San Fernando Valley, where the bulk of the pornography made in the United States is produced. 

(Editing by Cynthia Johnston and Ken Wills)

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Comments (1)
morbas wrote:
Every local USA government is in debt.
Disposable income is required to spur the economy. However the city-county municipality are short the revenue, thus tending to increase low income burden. Property and fee based revenue are the only constitutionally available revenues and the fixed-low income people know it. This revenue base unfairly burdens subsistence level wage; taxes must be margined above subsistence.

USA tax structure is the fault and an obstacle to worldly potential. Transaction tax code imposes disproportionate burden at the most fundamental rights of liberty, justice. Any encumbrance on sustenance is contrary to equality in the ’pursuit of happiness’. Debt and deficit is simply insufficient revenue. We can nationalize the tax code eliminating all other taxation, immediately balancing the budget(s), through a margin graduated income tax principle.

To: Office of Senator (insert name)
United States Senate Washington,
D.C. 20510

To: Office of Representative (insert name)
U.S. House of Representatives
Washington, DC 20515

We the people of this United States do proclaim this federal government ‘of, by and for the people’. That, in order to fairly distribute revenue burden, to satisfy ‘net income’ progressive taxation, to balance all governments budgets, and to not tax poverty;
The people mandate:
Income National Tax code that shall use margin graduated income tax principle: Margin $30k 0% single, $60K 0% joint, income above this a linear increasing rate {Income-[$30k or $60k])*(Income/$800k)*90%; 90% limit} . Exemptions shall be prohibited. The Federal Reserve shall amend the (90%) rate, and control currency printing mandated to maintaining currency availability and value. The Federal Reserve shall set the Margin rate value well (>2x) above highest of all State Poverty Level(s). Revenue shall be proportioned 1/3rd Federal,1/3rd State proportioned per cast ballot and 1/3rd Local proportioned per cast ballot.
This National Tax is a peoples tax, no other citizen taxation shall be permitted. Business shall not be taxed. The Federal Reserve shall control taxation. The people will by simple majority approve or reject all margin and rate changes at every Congressional House Representative election year ballot.

Use Linear Interpolation between points.
Joint Income
$60k-yr 0%
$100k-yr 5%
$200k-yr 16%
$300k-yr 27%
$500k-yr 50%
$800k-yr 90%


May 29, 2014 8:42am EDT  --  Report as abuse
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