Lawmakers Seek to Save California’s Local Production; Pressured to Increase Tax Credits

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During receding economic times and budget cuts, Hollywood has found creative ways outside of California to bring Blockbusters to the Big Screen. Last year Studios spent $3.1 Billion stimulating Georgia’s movie industry. Tax incentives ranging from 30% to 40% have lured most of Hollywood’s largest films to Georgia, Louisiana and other states as leverage to minimize financial risk.

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Twenty-Fourteen could mean a different strategy for Hollywood studios. California Assemblyman Mike Gatto and State Senator Kevin de Leon plan to introduce a new tax credit proposal for Film and TV after legislature returns in January 2014..

California’s current tax structure only allows for $100 million in tax credits per year which is insufficient for Hollywood to keep their studio productions in California not to mention premium cable shows and commercials that even don’t qualify.

According to Variety, Gallo has several proposals being studied. A “tiered system” for production in California as well as wages paid to state residents. Tentpole productions are also on the table to help localize productions with budgets of less than $75 million..

Cleary California representatives recognize the risk of losing billions of dollars to competing state’s film tax laws and are willing to create more opportunities for its studios to retain productions jobs in their home states. How much is enough is the question?.

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Categories: Film, News

Author:cedricarmand

Former Stylist at BCBGMAXAZRIAGROUP | Accepted Screenwriter by Hollywood Attorney John J. Tormey III | "Celebrity Supermodel" by Next Model Management - Miami

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