LOS ANGELES May 13 Legislation to expand
California's tax credits for movie and TV projects will help
make the state competitive against other states that are drawing
big-budget productions, mayors for large cities said in a letter
to lawmakers released on Tuesday.
On large film productions, the bill would make up to $100
million in qualified expenditures eligible for tax credits. It
also would bring television pilots into the program.
The bill, which was to go before the state Assembly's
revenue and taxation committee on Tuesday, would build on an
existing state tax credit approved in 2009 that provides $100
million a year in tax credits to the entertainment industry.
Mayors of 10 major California cities, including Los Angeles,
San Diego, San Francisco and Oakland, said in the letter that a
decade ago, Hollywood productions were made in cities across the
state. That is no longer the case, they said.
"Now California has lost nearly all big-budget feature film
production and most television production to other states and
nations which have ramped up their incentive programs," the
They added that the expanded tax credit is needed to make
California competitive again for the film and television
industry. "Too much is at stake for the people of California to
let this key industry slip away," the mayors said.
A study of employment and production data released in
February by the Milken Institute, an economic think tank, found
California has lost tens of thousands of entertainment jobs to
New York and other U.S. states in the past decade, as film and
television productions have left.
California lost 16,137 film and TV industry jobs between
2004 and 2012, and in the same period, New York gained 10,675
entertainment jobs, the report said.
Most states offer tax credits to film and television
productions, and California legislative officials say that
amounts to $1.4 billion a year for the industry.
Critics of the tax credits say Hollywood producers play one
state against another to get the best deal for their projects.
(Reporting by Alex Dobuzinskis; Editing by Sharon Bernstein and