Tuesday, August 26, 2014

So ... Smaller Tax Incentive?

California's movie/tv tax credit. Not the $400 million originally envisioned.

Last-minute negotiations between legislators and Gov. Jerry Brown likely to lead to an amount above the current $100 million in tax credits ...

The $400 million allocated in the bill that passed the state Senate is not going to hold, but otherwise the legislation as amended is acceptable to all sides, according to an informed source who spoke Tuesday on background. ...

Both sides hope to have the “the number” wrapped up by Friday; but the final re-votes, which will be necessary by both the state Assembly and Senate (because amendments were added), can take place as late as Aug. 31. ...

The Entertainment Union Coalition has been pushing for $400 mill (or more) for months. Far back, one of the wise old union reps said:

"When this wraps up, the bill's going to be Two hundred, maybe three hundred million dollars. No way is it going to end up at $400 million."

Governor Brown is a tight-fisted guy. And he plays his guards close to his vest. I think, in the back of my brain pan, I thought it was going to end up less than four-tenths of a billion, but I had hopes it would come close to that.

Governor Brown, apparently, was never going to let that happen.


ricksander said...

It would be great if instead of spending $100 or $400 million to subsidize multinational media corporations (corporate welfare) that the attorney general spent $10-20 million forcing film companies that use government subsidies in other countries to pay a tariff like they would if Germany started to pay 75% of the cost of BMWs and forced US car companies to lower their prices to compete.

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