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News: General

Progress Report on CA Film and TV Tax Credit Program

Thursday, August 27, 2015   (0 Comments)
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From the August 2015 California Film and Television Tax Credit Program Progress Report by Amy Lemisch (Executive Director):

Conclusion. California's modest first-generation tax credit program has achieved its goal of retaining certain targeted productions most susceptible to runaway production. While limited in scope, the old Program generated $5.93 billion in direct spending in the state, including more than $2 billion in payroll. However, due to overwhelming demand the Program could only accommodate a small fraction of those productions that wanted to shoot in California. For this reason, the state continued to experience a pronounced erosion in market share and jobs, especially in the area of big-budget feature films and 1-hr TV dramas.

Recognizing the need for California to address this erosion, and to compete on a global stage, state lawmakers and Governor Brown created the expanded Program 2.0, more than tripling the original funding and making key changes to attract those productions still highly vulnerable to runaway production: high-budget feature films and TV series. Already in the first two application periods, we are seeing the positive effects as four TV series selected for Program 2.0 have relocated to California. These four series are estimated to spend $169.5 million collectively in a single TV season. Over the multiple seasons of a successful TV series the economic impact will be even more significant. With Program funding tripled in size, the state can anticipate even greater gains in both production and employment.

In a highly competitive global environment, California still boasts a superior critical mass of state-of-the-art facilities, highly skilled film crews and the best talent in front of, and behind the camera. By leveraging modest sustainable tax credits against the robust private spending associated with most films and TV series, our state is well-positioned to retain its share of jobs and economic development generated by this uniquely California industry.

You can read the full report here: August 2015 CA Film & Tax Credit Program