Gov. Jerry Brown signs two-year extension of film tax credit
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Gov. Jerry Brown on Sunday approved a two-year extension of the state’s tax credit for films and television shows shot in California, providing up to $200 million in breaks.
The governor agreed that extending the credit program to July 1, 2017, was justified in light of the problem of runaway film production, where Hollywood companies are lured to other states that offer tax breaks and other cost-cutting.
The governor signed two nearly identical bills, AB 2026 by Assemblyman Felipe Fuentes (D-Sylmar) and SB 1197 by Sen. Ron Calderon (D-Montebello).
‘Every politician nowadays talks about job creation but for too many it’s just a political catchphrase,’ Calderon said. ‘With the signing of my bill, Gov. Brown joins me in demonstrating that we’re serious about keeping good jobs right here in the Golden State.’
The program provides up to $100 million annually in tax credits. So far $400 million in credits has been allocated to eligible film and television productions since the program began in 2009, but only $229,139 has actually been claimed, according to Fuentes’ office.
He estimated the tax credits have resulted in $3.9 billion in economic activity statewide and helped create about 40,000 jobs. But the state’s nonpartisan legislative analyst’s office recently concluded that each dollar spent on film tax credits is bringing back less than a dollar to the state treasury.
California is one of 40 states that offer financial incentives to the film industry.
-- Patrick McGreevy in Sacramento