Earlier this month, Governor Brown signed a one-year extension of the California Film & Television Tax Credit Program. The bill (AB1069-Fuentes), was vital to protecting our entertainment industry and putting tens of thousands of Californians to work by keeping billions of dollars of film industry spending in-state.
While the Governor’s support for AB1069 was welcomed by many of the bill’s labor and film industry leaders, the final signed version of the bill represents a significant curtailment of the bill’s original five-year extension period.
Though the bill had sailed through committees in both the Assembly and Senate, passing the Assembly 77-1, it hit a snag upon landing on the desk of Senate President Pro Tem, Darryl Steinberg. With a September 9th deadline for the passage of bills before the recess, AB1069 fell victim to some last-minute politicking and the budget battle.
Television producers especially need stability and consistency in incentive programs when deciding where to locate. After extending its film incentive for five years, New York is experiencing a record year for television series production.
“A one-year extension is a statement to the industry that its future in California is uncertain,” said FilmL.A. Vice President Todd Lindgren.
Assemblyman Fuentes has promised to author an extension in the next legislative session.
What is it going to take? Sacramento should make that 1 year extension permanent until unemployment goes down to zero.
What part of the study by LAEDC didn’t they get? Here a quote directly from the study:
“During the first two years of the program, California’s Film and Television Tax Credit, enacted in 2009, 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.
For every tax credit dollar approved under California’s Film and Tax Credit program, at least $1.13 in tax revenue will be returned to state and local governments. This impact is based on 2 components: (i) $1.06 per tax credit dollar in initial economic impact; and (ii) 7¢ per tax credit dollar from ancillary production.
Additional impacts from film-related tourism, although not quantifiable, may be significant and would increase the return noted above.”
Not to mention revenue from tourism.
Am I wasting my time beating a dead horse?