Milken Institute study: Strengths, weakness in California film tax credits
California’s film tax credit program has helped to stem the flight of movies and TV shows since it was enacted in 2009, but would be more effective with more funding and fewer restrictions on the types of projects that can qualify, a new study concludes.
The report, “Fighting Production Flight,” from the Milken Institute says California’s film tax credit -- which gives producers 20% to 25% tax credits toward qualified production expenses for films and TV shows shot in the state - has been successful in that it has been oversubscribed and has had a “demonstrable impact in arresting the decline in filmed entertainment spending and employment in the state.”
DOCUMENT: Fighting Production Flight
But the report also cites shortcomings. “The key concerns with the program are its limited funding relative to demand, the fact that it placed all targeted programs in the same application and allocation process, and the lack of long-term structural incentives that would serve to expand the program beyond its current funding and statutory limits,” the report says.
-- Richard Verrier, Los Angeles Times