California Tax Credit Program Working!

from: StudioCity.Patch –

Tax Credit Has Created Nearly $4 Billion in Economic Output and 20,000 Jobs In Two Years

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(Los Angeles) – Assemblymember Felipe Fuentes (D-Sylmar) was joined today by City Councilmember Paul Krekorian, ABC’s “Body of Proof” Executive Producer Matthew Gross, film and television industry, business and labor leaders to release a study by the Los Angeles Economic Devleopment Corporation (LAEDC) that showed that the California Film and Television Tax Credit Program hasgenerated $3.8 billion dollars in economic activity statewide, created more than 20,000 jobs and over $200 million dollars in tax revenues in it’s first two years.

“While anecdotally, we had heard the tax credit program was working, today, because of this report we are able to say definitively that the tax credit program has been a resounding success,“ said Assemblymember Felipe Fuentes.  “By creating tens of thousands of jobs and pumping billions into our economy, this program has truly been a statewide economic stimulus package.”

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.  The report found that for every tax credit dollar allocated so far, there has been more than $20 pumped into the economy.  The coalition urged the California State Legislature to extend the tax credit program an additional five years.

“California’s film and television production tax incentive has a proven record of success in putting Californians back to work and it must be extended another five years,” said Los Angeles City Councilmember Paul Krekorian, a former state Assemblyman who authored the first successful production tax incentive in California. “If our state government is serious about getting Californians back to work, we must be aggressive in preserving the industry that creates so many middle class jobs and supports so many local businesses both small and large.  We must be willing to fight to keep the film and television production that is such an inextricable part of our identity, our history and our economy.  We must never allow the day to come when we look up at the Hollywood sign on the hill and realize that ‘Hollywood’ is no longer here.”

The report was released in front of 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 Los Angeles Economic Development Corporation study illustrates why 40 states around the country compete for film and television productions: because they are a proven job creator and economic stimulus,” said Senator Chris Dodd, Chairman and CEO of the Motion Picture Association of America. “The motion picture and television industry is overwhelmingly comprised of middle-class workers earning a living wage, and since it was enacted in 2009, California’s production tax incentive has been an important driver in a challenging economy. We applaud Assembly Member Felipe Fuentes’ leadership in the effort to extend this worthwhile program which helps keep high paying jobs in California and increases tax revenues across the state.”

Assemblymember Fuentes is currently carrying a bill – AB 1069 – which would extend the tax credit program by an additional 5 years.  The bill was approved in the State Assembly by a 77-1 vote and is awaiting a hearing in the State Senate.

“There’s no question that the California production incentive makes a real and measurable impact on the lives of many thousands of people – both those who work directly on film and television productions and those for whom the economic impact of such productions reverberates around the state economy,” said Paris Barclay, director and First Vice President of the Directors Guild of America.  “We are very appreciative of Assemblymember Fuentes’ efforts to ensure that California’s film and TV industry remains the robust economic engine that it has proven to be for decades in our state’s history.”

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 post-production jobs and spending away from California.

“We applaud the work of the LAEDC in releasing this report.  This report shows the wisdom of the legislature when the Film and Television Tax Credit was created in. This program, as shown in the report, shows that California has added thousands of jobs, and has created additional revenue through the Production Tax Credit program,” said Thom Davis, Business Manager for I.A.T.S.E. Local 80.  “The technicians who work in the crafts in the motion picture and television industry wish to thank LAEDC for their work on this report, and demonstrating how vital the entertainment industry jobs are to all of California, and the benefits that these jobs bring to the State.”

 

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