Friday, May 23, 2014

Entertainment Tax Incentives

Assembly Bill 1839, California's version of Canadian/New York/Georgia movie and television tax incentives, moves closer to a vote:

... Legislation to expand California’s tax incentives for film and TV production cleared another committee on Friday, as the state Assembly appropriations committee unanimously approved the bill.

The legislation now goes to the full Assembly for a floor vote. ...

The bill would expand the state’s $100-million per year of incentives for production by making big budget movies eligible, along with more categories of one hour TV drama series.

Still to be determined is what amount supporters will see in annual tax credits, a key figure to make California more competitive with other states that offer more generous incentives. ... New York’s tax credit provides about $420 million per year, but the challenge for the bill’s authors has been to propose an amount that can survive the legislative process.

The legislation would also provide a post production credit for projects that complete at least 75% of visual effects work in the state...

The thrust of the bill is to lure production back to California. On Tuesday, IA union members will be at the capitol, leafleting and jaw-boning lawmakers to pass the new incentives. Expectations are the legislation will move briskly through the Assembly. The challenge will be to get it past skeptical State Senators from northern California.

Then, of course, there's the governor, who marches to his own drum.


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