Contact UsDid the California Senate Appropriations Committee approve the bill, AB 1839, aimed at quadrupling the tax subsidies for movie production to $ 400 million?
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Peter Scalise, SAX LLP
Yes, legislation was approved on August 14th by the Senate Appropriations Committee with a 5-0 vote which would eliminate a controversial system in which film and television productions were awarded tax credits based upon a lottery system, regardless of the economic effect of the production. The bill, AB 1839, must still be approved by the full Senate and signed by Gov. Jerry Brown. However, legislative supporters indicate they are highly confident the measure will clear all remaining hurdles, saying there is widespread acknowledgment that California is quickly losing one of its signature homegrown industries to other states as well as other countries due to competing advantageous movie production tax incentives offered outside of California. As a reference, most states now offer lucrative movie production tax incentives for filmmaking, awarding over $1.5 billion in film-related tax credits, deductions, rebates and grants in 2013, up from $2 million just a decade ago.
It should be duly noted that feature film production in Los Angeles County has fallen by half since 1996, and the region's share of television pilot production has fallen 73% since its peak in 2007, according to FilmL.A. Inc. Hollywood's production community hailed the legislative update as the bill "underscores a commitment to the hardworking men and women of California's film and television production community and to putting an end to the loss of these jobs," said a statement from the California Alliance, a coalition of entertainment unions, vendors and studios. "There is no question this will make a difference," said Bill Mechanic, a veteran film producer and former chief executive of Fox Filmed Entertainment. "This is good for California."
Please consult my published article series entitled "Lights, Camera, Action and Tax Cut" for further coverage on this area of the tax law:
https://taxconnections.com/taxblog/lights-camera-action-and-tax-cut-continued/#.U-_WTZ3D-Uk
http://taxconnections.com/taxblog/lights-camera-action-and-tax-cut/#.U-_XeZ3D-Uk
Please contact me directly with any further questions and thanks very kindly for submitting your inquiry.
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506 weeks ago
It should be duly noted that feature film production in Los Angeles County has fallen by half since 1996, and the region's share of television pilot production has fallen 73% since its peak in 2007, according to FilmL.A. Inc. Hollywood's production community hailed the legislative update as the bill "underscores a commitment to the hardworking men and women of California's film and television production community and to putting an end to the loss of these jobs," said a statement from the California Alliance, a coalition of entertainment unions, vendors and studios. "There is no question this will make a difference," said Bill Mechanic, a veteran film producer and former chief executive of Fox Filmed Entertainment. "This is good for California."
Please consult my published article series entitled "Lights, Camera, Action and Tax Cut" for further coverage on this area of the tax law:
https://taxconnections.com/taxblog/lights-camera-action-and-tax-cut-continued/#.U-_WTZ3D-Uk
http://taxconnections.com/taxblog/lights-camera-action-and-tax-cut/#.U-_XeZ3D-Uk
Please contact me directly with any further questions and thanks very kindly for submitting your inquiry.