Bills Propose Tax Credits for Filming in State

Concerned about the rapid slowing of Hollywood’s production boom, two proposals are being introduced in the Assembly aimed at giving a tax break to producers who shoot TV or film projects in California, it was announced Thursday.

One bill, by Assemblyman Scott Wildman (D-Los Angeles), would establish a 10% tax credit for labor costs when producers “maintain all production operations within California.” Separately, Assemblywoman Sheila Kuehl (D-Santa Monica) is introducing a bill to establish a refundable tax credit for a portion of labor costs.

The bills are aimed at stemming the outflow of projects on tight budgets to Canada, where tax breaks and a weak Canadian dollar make filming much cheaper.

The proposals come at a time when Hollywood’s labor leaders are increasingly vocal about difficulties some industry members have finding work. In large part, that stems from Hollywood studios’ trimming production slates and tightening budgets, although competition from other states and Canada is also a factor.

Both bills would offer a tax credit for wages paid according to a collective-bargaining agreement. That would cover nuts-and-bolts labor costs--work in such areas as lighting, sound and construction--rather than star salaries. Hypothetically, a producer who spends $1 million on those costs would receive a $100,000 credit under Wildman’s proposal.

Wildman, whose district includes major entertainment businesses, called his proposal a starting point and acknowledged that the language requiring companies to keep all production in the state could be problematic for shows that require some location shooting. He said the language may require tinkering.