LOS ANGELES - The City Council voiced its support last week for an extension and expansion of the state's film and television tax credit program, seeking to preserve California's competitive edge to retain production in the state. The program is currently slated to expire in 2017.
The incentive program, which provides $100 million in tax credits annually for movies and TV production, was originally authored in 2009 by then-Assemblymember Paul Krekorian. The program has proven to be a tremendous success in creating jobs and revenue, generating $3.8 billion in economic activity during its first two years while creating or saving 20,000 Californian jobs, according to a report by the Los Angeles Economic Development Corporation. Production days have also risen in the city of Los Angeles and around the state.
As California mulls an extension, other states continue to siphon off entertainment jobs and dollars. New York, for example, offers an incentive program four times as large as the Golden State's. As a result, New York has seen a tremendous jump in the number of jobs in the state's film and television industry, spiking nearly 25% between 2008 and 2011, supporting 28,900 jobs and accounting for $6.9 billion in spending.
"California has been reeling from a loss of big studio movies and, more recently, one-hour television dramas to New York and other states that offer more lucrative tax breaks to film and television companies," Councilmember Paul Krekorian said.
"We cannot afford to leave behind an industry that was born in Los Angeles and continues to support tens of thousands of good paying jobs. An extension of our incredibly successful film and television production incentive program would send a clear signal that California is serious about keeping our heritage industry here at home."
Note: This post originally appeared online in the CD2 News Vol. 4, Issue 3