RELEASE: Extension and Expansion of California’s Film and Television Tax Credit Passes Appropriations Committee
SACRAMENTO – With amendments to better ensure the California Film and Television Tax Credit’s objective of job creation and retention, the Senate Appropriations Committee passed Assembly Bill 1839 (Gatto/Bocanegra) on a 5-0 vote. Committee Chair & President pro Tempore-elect Kevin de León (D-Los Angeles) released the following statement:
“One of California’s most important and iconic industries has been the film and television industry. Hollywood is synonymous with that industry, but in the past decade that industry has been cannibalized by other states and countries that have poached tens of thousands of California jobs with lucrative financial incentives.
To halt that steady outward march of jobs and creativity, California must have a robust, smart, and efficient tax incentive program of our own--a tax incentive program that guarantees job growth and economic expansion, coupled with strong accountability and transparency measures.
When it comes to fueling an engine of job creation with taxpayer dollars, we have an obligation to ensure we are doing everything in our power to maximize their return on investment. This way – we can finally be assured – clearly and transparently -- that California’s taxpayers are receiving the maximum possible economic return on this investment.
And, together, we will keep the cameras rolling in our State for years to come.”
The amendments – which have been developed with the input of stakeholders across the industry, the Legislative Analyst's Office, and economists – will make a good program even better by making the following changes:
-Increase the current credit to $400 million per year for four years.
-Replace the currently-flawed and arbitrary lottery system with a more competitive, more accountable system.
-Applicants will be ranked according to net new jobs created and overall positive and sustained economic impacts for the entire State.