FIRST OFF . . .

Battling to keep the movie industry from fleeing California to other states, the State Board of Equalization has agreed to hand out tax breaks to companies that perform contract work for motion-picture studios. The board voted, 3-0, Tuesday to approve a 25-page list of changes to the state tax code, exempting companies that support the movie industry from paying some sales taxes. “I think it’s a good regulation now. It will certainly help the movie industry in California stay competitive,” said board member Ernest Dronenburg Jr. “We are competing nationally now.” The board implemented a series of changes in the tax laws that were approved last year by the Legislature to make taxes “consistent” for all segments of the highly specialized film industry, Dronenburg said. Existing laws excused movie studios from paying certain sales taxes, but failed to exempt specialized companies that animate motion pictures, film special effects, build sets, sew costumes, record and edit sound tracks, and perform other essential functions for the movie industry.