Bill Proposes Tax Credit for Filming in State

Concerned about the rapid slowing of Hollywood’s production boom, an assemblyman Thursday introduced a bill aimed at giving a tax break to producers who shoot TV or film projects in California.

The 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.”

Wildman’s bill is aimed at stemming the outflow of projects on tight budgets to Canada, where tax breaks and a weak Canadian dollar make filming much cheaper.

Wildman’s proposal comes 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.

The bill would offer a tax credit for “qualified wages and salaries,” or those 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.

Wildman, whose district includes major entertainment businesses in Burbank and Glendale, 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.

A show such as “ER,” for example, is shot largely at Warner Bros. in Burbank, but requires some shooting in Chicago, where the show is set. Wildman said one possibility would be to offer the credit for labor costs incurred for portions of productions shot in California.