CHICAS PRODUCTIONS: tax incentives

Venezuela has the largest proven oil reserves in the world. It was once so rich that Concorde used to fly from Caracas to Paris. But in the last three years its economy has collapsed. Hunger has gripped the nation for years. Now, it’s killing people and animals that are dying of starvation. The Venezuelan government knows, but won’t admit it!!! Four in five Venezuelans live in poverty. People queue for hours to buy food. Much of the time they go without. People are also dying from a lack of medicines. Inflation is at 82,766% and there are warnings it could exceed one million per cent by the end of this year. Venezuelans are trying to get out. The UN says 2.3 million people have fled the country - 7% of the population.

Showing posts with label tax incentives. Show all posts

Sunday, November 17, 2013

Save BC Film: Vancouver Lobby Helps Local Biz...

Despite the dire conditions, Vancouver's biz has actually picked up a bit

For decades Vancouver's hefty incentives have made the city a major shooting destination, especially for U.S. TV series. And lately the British Columbia metropolis has attracted a slew of vfx and animation companies, which have set up shop there to take advantage of tax breaks and the growing pool of local talent.

But not long ago it seemed that Vancouver was facing a significant production slowdown. Some companies closed, or, like Rockstar Games, left in pursuit of better incentives elsewhere. Execs were looking to places like Ontario, where vidgame developers can get up to a 40% tax credit compared to B.C's 17.5%.

The province offers a 33% credit just on labor costs — while Ontario and Quebec offer a 25% tax credit on all production costs. Further, the harmonized sales tax, which combines the 7% provincial sales tax (PST) with the 5% goods and services sales tax (GST) levied by federal government, has been phased out, so the provincial portion is no longer refundable to productions.

Facing such threats, the industry banded together under Save BC Film to lobby the government for changes prior to the provincial elections.

"Literally thousands were out of work," says Peter Leitch, chair of the Motion Picture Production Industry Assn. of British Columbia. "With the Liberal government re-elected, the credits remained at the same level. The industry was bracing for the worst."

But despite the dire conditions, Vancouver's biz has actually picked up a bit. Current numbers show that production is largely unchanged from last year's levels, according to Richard Brownsey, CEO of Creative BC, a new agency that amalgamates the B.C. Film Commission and B.C. Film + Media. And 30 new productions are filming or about to start.

Recent news of Pixar Canada shuttering its Vancouver studio set off shock waves, but insiders believe this was less due to incentives and more a corporate Disney decision related to the delay of two Pixar films and the need to shift work back to Pixar's headquarters. Says Nerd Corps Entertainment CEO Asaph Fipke: "Look, (parent company Disney) has ILM and Pixar here, so (why not move one) when they can still get the tax credit?"

Overall, the vfx/animation/post sector seems to be showing stability. Companies like MPC, Zoic, Scanline VFX, Image Engine, Atomic Cartoons, Bardel Animation, DHX Media, Gener8 and Nerd Corps are hiring. Given that Fipke's company is about to engage 50 more workers, over the next few months, reaching a staff of 400, he's confident predicting growth for TV animation. Gener8 CEO Rory Armes, whose company specializes in 2D-to-3D conversion, is looking to hire 80 people and is competing with other studios to get the talent.

Small fluctuations in tax credits are inconsequential for digital production, believes Fipke, insisting that when you net them out, the difference between those offered by B.C., Ontario and Quebec isn't very big. "The PST is maybe a little bit of an issue," admits Fipke, "but not enough for us to jump up and move the operation somewhere else."

Thank you Variety

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Colombia Takes Lead in Latin Incentives Surge...

Producers are being pulled south by nation's tax breaks

When producer Mike Medavoy was pondering where to shoot "The 33," the feature centered on the 2010 mining accident in Chile that left 33 men trapped underground for 69 days while the world followed their plight on TV and social media, he faced several choices. One was to shoot the film entirely where it took place: Chile.

Another was to split the shooting between Chile and Colombia; Chile offers no tax incentives, while the Colombian government recently passed a law that lets producers save up to 40% on production and post-production services and an additional 20% on lodging, transportation and meals if they hire local production service companies.

For producer Robert Katz of Half Circle, the banner producing "The 33," the decision was a no-brainer. He says the movie will save a significant chunk of change by shooting partly in Colombia. In addition to the government incentives, he says, "rates in Colombia are very competitive for crews, as are other costs. It's much less expensive to shoot there than in the U.S., and even Chile, and it makes all the difference on whether you can make the movie or not."

"The 33" is now in pre-production, and shooting is slated to start Nov. 25, with production almost evenly split between the two South American countries. Patricia Riggen will direct an ensemble cast that includes Antonio Banderas.

As different jurisdictions vie for a slice of the worldwide production pie, some territories are outdoing each other in the race to attract film producers. Led by Colombia, Latin America has introduced some of the most aggressive programs.

And in Colombia, those efforts have paid off, according to Joe Chianese, exec VP of Entertainment Partners, the production payroll firm that also advises producers on state and national incentive programs and calculates comparative budgets based on shooting locations. "The incentive is barely a year old, and I've gotten maybe two dozen phone calls from people looking at Colombia," says Chianese. "The country has a perception issue dating from the '80s drug-lord culture, but the film commission has done a good job of changing those perceptions."

Chianese notes that other parts of Latin America — helped by more favorable exchange rates, growing economies and improving public safety — have also emerged as major shooting destinations. This includes Brazil, the largest Latin territory. And in the Caribbean, where Puerto Rico has long lured productions from the U.S. mainland with tax breaks and scenery, the Dominican Republic has also thrown its hat in the ring, bolstered by a newly built soundstage complex courtesy of U.K.-based Pinewood Studios.

On the other hand, Mexico, which also offers incentives, is today afflicted by drug wars the way Colombia was a decade ago. Despite scoring some recent gets, such as the Matt Damon starrer "Elysium," "the country is truly suffering from a safety issue," Chianese says.

"A lot of the kinds of movies that used to go to Mexico are now coming here," says Colombian film commissioner Silvia Echeverri. "We had to pass through the same history." Her office supports the year-old incentive program with tours inviting producers from the U.S. and elsewhere to visit Colombia and learn first-hand what resources are available, including production service companies, crews and locations.

But there are also limits to Colombia's incentives and resources. Consultant Jason Resnick, whose clients include film distributors and Colombia's Proimagenes film promotion agency, notes that the new incentive applies to features but not to TV series. "Colombia has a robust TV industry," he says. "If the incentive applied to television, all the local TV production companies would start applying for it."

Another shortcoming: Colombia has no large, sophisticated soundstages that could house major feature productions.

"We don't have huge studio areas needed for big films," commissioner Echeverri acknowledges. "But if a film is not huge we can offer TV production space in Bogota. But we mainly offer our crews and locations."

Thank you Variety

Rep. Cardenas, others protest higher fees for filming on public lands ...

A plan to double film permit fees on public lands has produced a rare moment of bipartisanship in Washington.

Rep. Tony Cardenas (D-Los Angeles) joined more than 50 other representatives from both sides of the aisle this week, sending a letter to the U.S. Department of Interior and Department of Agriculture requesting that fees for filming on public lands not be increased.

The departments, squeezed by budget cuts, are considering a plan that would double filming fees.

Cardenas and a bipartisan group of representatives contend the higher fees would drive more production out of the country.

They wrote to Interior Secretary Sally Jewell and Agriculture Secretary Tom Vilsack, saying that although "there is no question that filmmakers understand the need to pay their fair share to use our public resources, we are concerned that the proposed increase will further facilitate film production outside the United States."

"This is a very simple request that our government treat these American businesses fairly," Cardenas said. "Our cities and municipalities are struggling to maintain revenue as it is. Our government agencies should not push filmmakers away from home, hurting jobs and our economy."

On average, a major motion picture spends more than $225,000 each day "on location," benefiting small businesses in the filming area, the legislators said.

Chris Dodd, chief executive of the Motion Picture Assn. of America, added: "The MPAA has long supported the Department of the Interior and the Department of Agriculture's ability to collect reasonable fees for filming on public lands to ensure that taxpayers are never burdened. The proposed increase, however, would discourage the very filming that is bringing the parks revenue."

Thank you Los Angeles Times

State Sen. Ron Calderon Yanked From California Film Commission...

The move comes a day after Al Jazeera America's investigative scoop, and a week before the commission was set to discuss California's tax incentive program.
Embattled California state Sen. Ron Calderon was removed late Thursday from the state's film commission, a day after Al Jazeera America reported that he accepted $60,000 in bribes from an undercover FBI agent posing as a film producer.

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FBI: State Senator Took Bribes to Influence Film Tax Credit Legislation (Report)Hollywood Petitions California Legislators for More Film and TV Tax IncentivesOn Wednesday, Oct. 30, the network aired an investigation, telling viewers that FBI agents, acting undercover as movie executives, asked Calderon to lower the state's tax incentive amount. Calderon told the agents he could influence the film industry legislation, and asked them to help get jobs for his children, according to the report.

RELATED: FBI Says State Senator Took Bribes to Influence Film Tax Credit Legislation

In fact, city, state, industry and labor officials have spoken loudly of the urgent need to increase California's $100 million state tax incentive program, in order to better compete with bigger-budget states like New York, Georgia and Louisiana.

An aide to state Senate president pro tempore Darrell Steinberg told The Hollywood Reporter that the film commission has a meeting set for next Thursday in Los Angeles. Steinberg, the Democratic majority leader, worked with members of the Senate rules committee on Thursday afternoon to effect the removal of Calderon from the film commission.

One of the items on the agenda for the film commission when it meets Nov. 8 is a discussion of the tax credit program.

Calderon, according to documents Al Jazeera America cited in its report, also invoked Steinberg's name, saying about their relationship, "I helped him, he helped me."

"The appearance of impropriety dictates that the senator no longer sit on the commission," Steinberg told reporters Thursday evening in Sacramento.

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Steinberg denied any wrongdoing and noted he has cooperated with authorities, and that he never endorsed or introduced anything proposed by Calderon on this matter to the Senate. Steinberg said he wouldn't comment on what he termed "off the wall" comments Calderon made in Al Jazeera America's report.

Tom Sherak, who has been appointed by new L.A. Mayor Eric Garcetti as his film czar with a mandate to promote the extension of the tax incentive program and to grow it, said on Friday that the Calderon case doesn't change anything for him or the Mayor.

"What we are going to do is to take an honest, transparent approach to helping people in our city and our state," says Sherak. "This is a good cause."

Sherak says he understands some people who oppose the tax incentive program may use the Calderon case for political purposes. "If they are going to throw dirt then they are going to throw dirt," says Sherak, adding: "We're not Calderon. We have a righteous cause. We're gong to fight for that righteous cause."

But Ben Golombek, a spokesman for Bocanegra, says he does not believe the Calderon investigation will hurt chances for passage of an extension to the tax incentive program. "It's unfortunate its tied in any way to what is going on," says Golombek. "This is a terribly important issue for the state of California and whatever has gone on is totally to the side of what needs to be done."

On the same day the Calderon story broke on Al Jazeera American, a campaign committee representing Steinberg disclosed a number of contributions to the Senator from major Hollywood figures, according to the Sacramento Bee

Those include donations to Steinberg's 2018 campaign for lieutenant governor of more than $27,000 from director Steven Spielberg and wife Kate Capshaw and Dreamworks CEO Jeffrey Katzenberg and wife Marilyn Katzenberg,

Calderon has not been pushed off any of the standing California Senate Committees of which he is a member – yet. Because the Senate is not currently in session, there is no urgency to address his continued role there. No law or Senate rule would force Calderon out unless he's convicted of a crime. That is now up to the federal authorities who are expected to follow up on the case. However, in 2006, a state Senator under investigation by the federal authorities would up with no charges filed against him.

Amy Lemisch, director of the state film commission, said Friday that the board will meet as expected, without Calderon. She said that he has been on the board since 2007 and during that time has attended about half the board meetings.

The spokesman for Steinberg said the majority leader will pick a person to replace Calderon on the 21-member commission. The Senate has the right to choose four members, one of whom must be a sitting Senator – the role Calderon played. Whoever is appointed to replace Calderon must also be a member of the state Senate.

Thank you Hollywood Reporter

FBI: State Senator Took Bribes to Influence Film Tax Credit Legislation (Report)

Ronald Calderon allegedly accepted $60,000 after telling undercover agents posing as movie execs he would help them lower the budget threshold for films eligible for the movie tax incentive.

A California state senator allegedly offered to influence the state's movie tax incentive in exchange for money from FBI agents he thought were movie executives.
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Al Jazeera America Plots More Bureaus, New Hires, Expanded Coverage and Programming

Hollywood Petitions California Legislators for More Film and TV Tax Incentives

Time Warner Cable, Al Jazeera America Reach Carriage Deal
During a year-long FBI investigation, State Sen. Ronald Calderon allegedly accepted $60,000 in bribes from agents posing as movie executives, according to a report from Al Jazeera America's investigative unit that appeared on America Tonight. The report cites a sealed, 124-page affidavit filed by the FBI in U.S. District Court in Sacramento.
According to the affidavit, agents posing as execs from a fictitious independent studio asked Calderon to help lower the budget threshold for films to qualify for a 20 percent tax credit from $1 million to $500,000.
Calderon, the chair of the Senate Select Committee on California's Film and Television Industries, said he could lower the threshold to $750,000 if the agents would give financial assistance to his adult children. The FBI says Calderon funneled payments to himself through his children, as well as a nonprofit connected to the California Latino Legislative Caucus.
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It also says Calderon helped hire an undercover agent posing as an aspiring model for a legislative position in Sacramento, even though she had no relevant qualifications. Calderon also allegedly accepted a number of other gifts from the agents, including allowing them to pay for a table at a Las Vegas nightclub, where Calderon and an aide spent nearly $4,000.
Calderon has not been charged with any crimes. His attorney did not immediately respond to a request for comment.

Hollywood Reporter

MPAA’s Chris Dodd Calls for California to Expand Tax Credits to Lure Big Budget

Speaking on Friday to a San Fernando Valley business group, MPAA chairman Chris Dodd called for an expansion of California's production tax incentive program to include big-budget films, noting that the state has lost out to others on projects like the sequels to "Man of Steel" and "The Amazing Spider-Man."

California's incentive program, adopted in 2009, provides $100 million per year for film and TV productions, but movies with budgets above $75 million are not eligible. The intent was to prevent only a handful of movies from depleting the annual outlay, but Dodd said that the result has been a dearth of big-budget tentpoles shooting in the Los Angeles region.

It should be no surprise, then, that "11 of this year's 12 biggest blockbusters were filmed in states like Louisiana and New Mexico instead of California," Dodd said, according to his prepared remarks to the Valley Industry and Commerce Assn. "And this trend is only going to continue."

"The Amazing Spider-Man 2″ shot in New York, and the sequel to "Man of Steel" will shoot in Michigan, he noted.

The MPAA actually advocates for incentives nationwide, and the industry's lobbying org, in seeking congressional support, has often promoted the fact that so many states benefit from production jobs.

Dodd said his "job at the Motion Picture Association is to advocate on behalf of my studios, not the locations of their productions, but I know the studios I represent would prefer, everything else being equal, to make their films and television programs here in California, for many reasons."

He warned that with other states offering incentives, "It does not take long for those states and countries to attract and train talented local people to do the work that historically could only be found here and a few other places."

Dodd also called for a California incentive program that will make it possible for long-term productions, like TV series, to budget well into the future. The state program was renewed last year until 2015, even after advocates called for a longer-term extension.

Critics of incentive programs have called it a "race to the bottom" and have challenged some claims of job growth when productions shoot at a location. And while Los Angeles Mayor Eric Garcetti has put runaway production on his priority list, with a plan to lobby state lawmakers to expand the California program, he will have to convince them to do so against many competing interests.

Critics of expanding the incentives, however, have questioned the urgency given that NBCUniversal, Disney and Paramount each have plans to expand their production facilities in Southern California. Indeed, Dodd said that the "film industry is not suddenly folding its tent and moving elsewhere." He said that the expansion plans indicate that the industry "is betting on California's future as well." But he said that "more needs to be done to keep this industry from slowly slipping away."

Dodd also called on Google to do more to fight piracy, citing a study funded by the entertainment industry showing that 74% of consumers surveyed cited using search engines to discover or navigate to infringing sites in their initial effort to download a movie or TV show.

"These search engines have the ability to stop directing audiences to sites with illegitimate content, and I am still hopeful that we can work with them in the coming days to find ways to make this happen," Dodd said.

Thank you Variety

Italy Renews Production Tax Incentives, Including for Foreign Films...

Bill is considered a crucial lifeline for Italo industry and key to luring foreign shoots

The incentives — which give local producers a 20% tax break, outside investors a 40% tax shelter, and foreign productions a 25% tax credit — have been in place since 2009, and had been previously approved through 2013.
But in recent months foreign producers started seeing them as a risky proposition because the country's cash-strapped government initially indicated the tax breaks would be frozen and also not renewed again. This fear has caused an estimated thirty million dollars in lost business over the past few months.
Bowing to an Italo industry uproar, the decree called Valore Cultura (Culture Value) has now cleared its final hurdle with an overwhelming majority in the Lower House. It provides a total of Euros 110 million ($150 million) in production incentives over the next three years. Most of the coin is for film, but 20 million Euros have been designated for TV productions, marking the extension of the Italo incentives to TV.
"It was a life of death situation, so we are very relieved," said Riccardo Tozzi (pictured), prexy of Italo motion picture association ANICA, in a statement. "Now we have to build on this new dialogue to make cultural industry a driver for this country."
Italo tax incentives offer a 25% deduction for international productions capped at $7 million, payable through an Italian executive producer.
Woody Allen's "To Rome With Love," produced by Letty Aronson with financing from Italy's Medusa, Amber Entertainment's "Romeo and Juliet," helmed by Carlo Carlei, and "Third Person" by Paul Haggis, produced by Belgium's Corsan, are among foreign titles that have tapped into the generous Italo incentives.

In separate Italo industry news , Andrea Occhipinti, head of prominent Italo indie shingle Lucky Red, has been appointed head of the country's distributors org. a sub-section of ANICA. Occhipinti has pledged to step up efforts against the country's rampant piracy plague.

Thank you Hollywood Reporter

Santa Barbara Offers California’s First Production Rebate Program...

In an attempt to attract production to the region, the county of Santa Barbara is offering an incentive program that it says is the first of its kind in California.

The Santa Barbara County Film Commission will provide a cash rebate for films, TV shows, unscripted series, commercials and still photography shot in the country, which was the home of California's first film studio in 1910.

Production companies qualify by booking a set number of room nights, as determined by the type of production, in certain areas including Montecito, Santa Barbara, Los Olivos and Solvang. For example, a feature film must book 200 room nights, while a reality show needs 50 room nights to qualify. Permit fees will qualify for reimbursement along with 50% of California Highway Patrol or police costs.

Total funding for the program is $50,000 for the fiscal year, and eligibility is determined on a first come, first served basis until available resources are depleted for the year. For more information, visit FilmSantaBarbara.

Thank you Variety

California Lawmakers Say They Will Introduce Bill to Boost Film and TV Production

California Assemblyman Mike Gatto (D-Los Angeles) and and state Sen. Kevin de Leon (D-Los Angeles) say that they plan to introduce a film and TV production tax credit legislation in January, 2014, once the legislature returns from an interim recess.

GET CALIFORNIA FILM TAX CREDIT NEWS AND ALERTS FREE TO YOUR INBOX

California's existing tax incentive program, which originally passed in 2009, provides credits up to $100 million per year. Critics say that the sum is insufficient to meet the demand or to compete with other states, and that the credit is not available to categories like premium cable shows and commercials.

Gatto and de Leon have key roles in Sacramento as chairmen of their respective chamber's appropriations committees.

In an interview, Gatto said that specifics of the legislation are still being drawn up, but he said that an expansion of the total amount available to producers is "the most obvious thing to consider."

He also said that they are looking at proposals to try to draw tentpole feature film production back to California, which are not eligible for the current credit because it is capped to features with budgets over $75 million. What they are looking at, he said, is removing the restrictions on those big-budget movies, but limiting the amount of credit that is available to them. That would be a way to try to lure such productions without burning through the state's total incentive budget with just a handful of productions.

"Those tentpole productions can be very lucrative to a local economy for a long time," Gatto said.

Another area they are looking at is a way to give some sort of extra incentive for productions that shoot in areas of the state that rarely see much movie and TV production, as a way of addressing criticism from lawmakers who may see the program as solely benefiting Los Angeles.

Also being studied, he said, is a "tiered system," where producers would be eligible for credits for locating their production in California and for another type of credit for wages that are paid to state residents.

Gatto also said that they were looking at ways to expand the eligibility of more types of TV production, in particular TV pilots and hourlong drama series. "We think the bread and butter are scripted hourlongs," he said.

He also said that they are working on measures to retain post-production and other types of production infrastructure.

Gatto and de Leon said that they have been meeting with below-the-line workers and small business owners to create their legislation. Gatto also said that his staff has been collecting the many studies that have been done on film and TV tax incentives — some of them favorable, some of them critical — so as to "try to get a sense of what works and what doesn't work" and to "try and anticipate what critics will say."

Although the state's tax incentive program has been extended twice, they have been for short increments, with proposals for five-year extensions whittled down in the face of opposition. Orgs like the California Federation of Labor and the California Teachers Assn. have been on record opposing incentive legislation, arguing that the measures didn't make sense at a time of strained resources for areas like education. The last extension, for two years and $200 million, was signed by Gov. Jerry Brown last fall.

Los Angeles Mayor Eric Garcetti has made the issue of runaway production a priority of his administration, but he has suggested that the key to meaningful incentives lies in Sacramento. He and his newly appointed film czar, Tom Sherak, plan to lobby Sacramento lawmakers.

Gatto acknowledged that the legislation will be a "heavy lift." "If it was easy to get done, there would be a much bigger, broader incentive than the one on the books," he said. He also acknowledged what Garcetti has: That Brown also remains to be convinced to expand the program. A big push among advocates for the industry is expected to be the impact it has on middle-class workers and related businesses.

Thank you Variety

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Thank you for your time,
Hope you'll found the information you expected,
Don't hesitate contacting us,
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L.A. feature film shoots plunge in third quarter...

After two consecutive quarters of growth, feature film shoots on the streets of Los Angeles plunged in the third quarter.

On-location filming fell 21% in the three-month period ending Sept. 30, generating only 1,640 production days compared with the same period a year ago, according to a report from FilmL.A. Inc., the nonprofit group that handles film permits for the city. (One production day represents a crew's permission to film a single location in a 24-hour period.)

The slide in feature activity marks a stark turnaround from the first and second quarters, when film production rose 16% and 9%, respectively. The data apply to film shoots on streets and noncertified sound stages, as opposed to shooting on studio lots.

Film industry officials attributed the decrease to the ongoing rivalry from other states and foreign countries luring business away from Hollywood and the fact that fewer feature projects qualified for California's film and television tax credit program this year.

So far in 2012, only 22 feature projects have been approved for the state film tax credit, which is allocated in June. The state, which awards $100 million a year via a lottery, approved 40 projects in 2011. State lawmakers recently approved legislation to extend funding for California's film tax credit through mid-2017.

"We applaud the recent two-year extension of California's film incentive program, and support expanding the program to stop the production outflow and attract a more diverse slate of high-value productions,'' FilmL.A. President Paul Audley said in a statement.

State film tax credits were awarded to several locally produced TV shows, including "Body of Proof" and "Rizzoli and Isles."

Nonetheless, those shows accounted for a tiny share of overall TV location filming in the third quarter. The television category had a weak quarter, slipping 1.4% to 4,245 production days, led by a 20.5% drop in reality TV and a 18.5% decline in TV dramas. Broadcast networks increasingly have been eyeing New York and other states for their new dramas.
On the other hand, sitcoms and and TV webisodes continue to show rapid growth in Los Angeles. Sitcom production jumped 48% in the quarter while TV webisodes surged by 149%, FilmL.A. said.

"The television landscape is changing in Los Angeles, and economically, the sector has taken a turn for the worse,'' Audley said. "Many of the new TV projects we're coordinating permits for have low spending and employment impacts. More needs to be done, policy-wise, to help return sought-after TV drama projects to Los Angeles."

Commercial activity in the L.A. area decreased 5.3% to 1,635 days in the quarter afer posting big gains in the first half of the year.

Thank you Los Angeles Times

Entertainment unions, groups hail state film tax credit extension...

A broad coalition of unions representing the entertainment industry hailed Governor Jerry Brown's decision to sign into law a two-year extension of California's film and television tax credit.

"We commend the legislature and Gov. Brown for recognizing that the motion picture business is an integral part of the economic and cultural powerhouse that has been California during the last 100 years," said a statement issued by a coalition of entertainment industry unions, including the Directors Guild of America, the Teamsters, the International Alliance of Theatrical Stage Employees and SAG-AFTRA.

Brown approved legislation that was overwhelmingly supported by the state Assembly and the Senate. The bills provide $200 million for the state film tax credit, extending funding through 2017.

California offers a 20% to 25% credit toward qualified production costs, which employers can use to offset any business tax liability they have with the state.

Although the program is limited and not as competitive compared with what some other states offer, the bills were widely supported in the entertainment industry as a means of slowing the exodus of film and television production from California.

While the bills were expected to be approved, their support from the governor was not assured given the competition for scarce government resources. Backers originally pressed for a five year-extension, but that goal proved unrealistic.

"Unlike most other industries, ours is a highly mobile one -- film and television production can be shot anywhere," the coalition said in its statement. "Because of that reality, thousands of our members who live in California and want to work in California are dependent upon this state remaining competitive. We know firsthand that this program has created employment opportunities for them, and with that, health and pension coverage for them and their families."

The Motion Picture Assn. of America, which lobbies on behalf of the major studios, also praised the bills' passage.

"The state of California took a big step forward today, thanks to Gov. Brown and the legislature," said MPAA Chairman Chris Dodd. "The two-year extension of the state's production tax credit will keep California competitive for tens of thousands of production-related jobs. This is an important victory for California's economy, our national economy, and the hardworking men and women who comprise the film and television industry."

Thank you Los Angeles Times

California Assembly approves state film, TV tax credit extension...

By Richard Verrier

The California Assembly overwhelmingly approved a bill that would preserve funding for the state's film and television tax credit.

The Assembly voted 70-4 in favor of the bill, which extends funding for the program another two years. California allocates $100 million annually toward tax credits, which are doled out by lottery because of limited funds. Funding was due to expire next year.

The film industry had been pressing for a five-year extension to show the state's commitment to the industry, which is being lured away by other states with strong incentives. But that proved a tall order in light of the state's budget woes.

The state Senate is expected to hold its first committee hearing on a similar bill next week.

Thank you Hollywood Reporter

California Movie And TV Tax Credit Extension Moves Forward...

The bill was altered to extend the $100 million annual tax credit program to two years instead of five, matching a bill in the state Senate.

A bill to extend California's program of tax credits designed to stop movie and TV production from leaving the state passed a key test Wednesday and now is headed to the full Assembly for a vote, probably next week.

New York Attempts to Lure Hollywood By Tripling Post Production Tax Credit

California Senate Committee Approves Tax Credit Extension, Cuts Term to 2 Years
Before passage, the bill was changed to mandate a two-year extension of the $100 million annual program. An earlier version called for a five-year extension. The two-year term matches a similar bill making its way through the state Senate.
The bill was heard by the Assembly Appropriations Committee, which then passed it by a unanimous vote.
The bill introduced by Assemblyman Felipe Fuentes (D, 39th district -- which includes San Fernando, North Hollywood). It had previously passed the State Assembly Arts and Entertainment Committee.
The Senate version was introduced by Senator Ron Calderon (D, South East Los Angeles). It is expected to be heard by the full Senate in the coming weeks.
Gov. Jerry Brown has yet to announce whether he supports an extension of the tax credits meant to stem runaway production, a program that began in 2009 under then Gov. Arnold Schwarzenegger. Brown signed a one year extension at the end of the legislative session last year.

Thank you Hollywood Reporter

Assembly committee backs California film tax credit bill...

Article from Aug 2012

By Richard Verrier

A state bill aimed at curbing runaway production has moved closer to becoming law.

The Assembly Appropriations Committee unanimously supported a bill that would extend funding for California's film and television tax credit program. Funding for the program is due to expire next year.

California sets aside $100 million annually for dozens of projects applying for credits between 20% and 25% of qualified production expenses for movies and TV shows.

The bill, however, was amended to provide for an extension of two years instead of five years. Industry backers sought a longer-term funding commitment to compete with other states that offer film tax credits, but that has been a tough sell in the state's current fiscal climate.

The measure now goes to the full state Assembly for a vote, which is likely to take place next week. The state Senate is expected to take up a similar bill later this month. A Senate committee in June also supported a similar two-year extension.

California lawmakers first enacted the program in 2009 in an effort to compete with nearly 40 states that offer tax incentives and rebates to filmmakers.

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