California to Offer Film, TV Tax Credits

SACRAMENTO: The California legislature has approved tax credits for local film and TV productions as part of an economic stimulus provision in its new state budget.

The move is one that actor-turned Governor Arnold Schwarzenegger has been lobbying for for some time, especially following the battering that the Californian economy received during last year’s writers’ strike. They offer a 25-percent tax credit to TV productions that move to California. That break will also be offered to indie features budgeted at between $1 million and $10 million. The credits are capped at $500 million over the next five years.

The incentives were welcomed by the local entertainment community. A joint response from SAG, DGA, AFTRA and the MPAA, stated: "For the past 10 years, a united entertainment community has been telling state officials that our industry is threatened by runaway film and television production. Film and television productions have been leaving California for tax incentives in other states and countries for years now, and like everybody else, entertainment industry workers are suffering in this economic climate. We applaud the passage of this incentive which will help make California competitive and not only save the jobs that are being lost but generate much needed revenue for the state."