The Los Angeles Economic Development Corporation (LAEDC) released an economic impact study highlighting the successes of California’s film and television tax credit program. According to the study, “During the first two years of the program, California’s Film and Television Tax Credit… has generated more than $3.8 billion in economic output and is supporting more than 20,000 jobs in California. This activity will return to state and local governments an estimated $201 million.”
State assembly member Felipe Fuentes joined L.A. city council member Paul Krekorian to discuss the report on the set for the hit ABC show Body of Proof, which recently moved its production back to California because it received a tax credit through the program. The show is estimated to spend over $43 million and create at least 200 jobs in the upcoming year.
The Tax Credit Program was enacted in 2009 to help stem the tide of runaway production. The program allocates $100 million a year in tax credits for qualifying film and television programs to help keep entertainment jobs in California.
A total of 110 productions have been approved under the program to date. This study estimates the impact of the first 77 productions that were approved for tax credits totals $198.8 million.
Today over 40 U.S. states, New York City and Canada among others, offer substantial financial incentives to the film and television industry in an attempt to lure production and postproduction jobs and spending.
Assembly member Fuentes is currently carrying a bill – AB 1069 – which would extend the tax credit program by an additional five years. The bill was approved in the State assembly by a 77-1 vote and is awaiting a hearing in the State Senate.