Goin' Back to Cali

California, the biggest victim of runaway production, finally looks to be on track to pass tax incentives to keep productions from going away. The initiative, which has bipartisan support, will be heard by the state's Senate Appropriations Committee on Monday. In the bill's current incarnation, there would be $50 million--twice NY's amount--set aside to give to film, TV, and commercial productions in the form of a refundable tax credit equal to 12% of a production's California expenditure, up to a cap of $3 million per production. TV movies would get an extra 3%.

The bill is being opposed by taxpayer groups, who view the credit as an excessively generous subsidy carved out from scarce public funds.

The proposed incentives are bested by those offered by Canada and Louisiana. Still, if these incentives pass, it will be tough for any jurisdiction to beat the production infrastructure and expertise that California has developed over the last century.

>> California Considers Tax Breaks for Filming [NY Times, 8/18/05]
>> Hollywood subsidy blasted as 'corporate welfare' [Hollywood Reporter, 8/22/05]
>> Calif. losing millions as films leave state - study [Reuters, 8/22/05]

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