Fuentes
Gov. Jerry Brown has signed a bill that extends California's film production incentive program for a year.
Brown signed the legislation late Sunday, the final day for the governor to approve or veto bills from this year's legislative session. The State Senate had voted Sept. 9 to extend the program for a single year rather than the five years its backers had sought.
Assembly Bill 1069 will provide a one-year $100 million extension to California's 3-year-old Film and Television Tax Credit Program. In its three-year history, the California program has allocated credits totaling $400 million and will allocate its final $100 million by next July.
The bill, authored by Assemblyman Felipe Fuentes (D-Sylmar), received a 77-1 approval in the Assembly in June when it provided for a five-year extension.
"I'd like to applaud Governor Brown's leadership in signing AB 1069 today," Fuentes said in a statement early Monday. "By creating tens of thousands of jobs and pumping billions into our economy, the film and television tax credit program has truly been a statewide economic stimulus package."
California's program, aimed at halting runaway production, stipulates that producers can use the credits only after post-production is completed. The credits allocated next year would be used during the 2013-14 fiscal year, long after its positive economic impact is generated -- estimated at $2.8 billion over its first three years.
A recent study by the Los Angeles Economic Development Corp. showed that the first two years of the program has generated $3.8 billion in economic activity statewide, created more than 20,000 jobs and more than $200 million in tax revenues. Opponents of the program have contended that the tax credits go to already-wealthy producers, in addition to questioning the accuracy of the projected economic benefits.
"With the state's unemployment rate hovering around 12%, we need this incentive to help keep tens of thousands of Californians employed," Fuentes said. "Extending this program will prevent production companies from moving their projects, jobs and spending out of California."
California's program, which offers a maximum rebate of 25%, is far smaller than those of other states. The state of New York announced in August that a record 23 series were lensing in the state this year on the heels of the state legislature's five-year renewal of its film incentive tax program, which offers a 30% refundable state tax credit, capped at $420 million per year; New York City offers an additional 5% refundable credit, capped annually at $30 million.
MPAA topper Chris Dodd praised Brown for signing the bill.
"The extension of the motion picture production tax incentive means that California will continue to compete for motion picture and television productions, with tens of thousands of good middle class jobs for Californians," Dodd said. "And we look forward to renewing the effort next year for a longer extension so that productions have certainty in the future of this important program."
Contact Dave McNary at
dave.mcnary@variety.com