Bills fight prod'n flight

Tax incentives head for Senate OK

By NICK MADIGAN

The California Assembly has given its blessing to two bills that would provide tax incentives for film and TV production in the state, which is feeling increasing competition from cheaper locations abroad.

Approval in the Assembly, by hefty margins, follows endorsement of both bills by members of the appropriations committee last week (Daily Variety, May 27). The measures, known as Assembly bills 484 and 358, must be cleared by the Senate before they become law, most likely as a single consensus bill.

The first measure passed in the Assembly by a vote of 60-10, the second by 60-16.

In its present form, AB 484 would provide for a two-year tax credit of 10% on labor costs for work performed in California on motion picture and TV productions budgeted under $5 million.

AB 358 would create a 10% tax credit against labor costs incurred on film, television and commercial productions of any size working entirely in California. It's estimated that the measure would mean an $81 million hit for the state's tax revenues in the first year alone, but proponents hope that the loss would, in the long run, be more than compensated by a resurgence of local production.

Assembly member Sheila Kuehl (D-Santa Monica), who authored AB 484 and was an actress in her childhood, said in a statement that the bill was designed "to stem the tide of runaway production in California."

On May 25, the Assembly approved another Kuehl bill, AB 848, by a vote of 74-0. If it passes the Senate, the law will make it easier for filmmakers to shoot in coastal areas of California, while still protecting the appeal rights of residents. Among other things, the measure expedites the issuing of permits by the California Coastal Commission.