The Breakdown

Explaining Southern California's economy

10 mayors support expanding state's film tax credit program

69698 full
69698 full

Ten California mayors expressed their support for expanding the state's film and TV production tax credit program.

The mayors wrote a letter to two state legislators who are the joint-authors of a bill that would allow more types of productions, including big budget films, to qualify for the state's program.

RELATED: Legislators introduce bill to expand California film and TV tax credit program

The program allocates $100 million annually and advocates have argued to increase the amount of tax credits available. There's been concern that states like New York are luring film production from California. New York's program allocates roughly four times more in financial incentives.

"Simply stated, the demand for film and television productions that want to remain in California far exceeds the resources available within the state's current production incentive program," the mayors wrote in the letter. 

Last year, less than one in 10 projects that applied for the program had received financial incentives from the state, the mayors said.

RELATED: Report: California's film and TV jobs at critical risk

The mayors were from Los Angeles, Bakersfield, Fresno, Long Beach, Oakland, Sacramento, San Diego, San Francisco, San Jose and Santa Ana.

Some critics, like Joseph Henchman, with the Tax Foundation, said that increasing the amount of tax credits may encourage other states to do the same, resulting in "a race to the bottom."

RELATED: California could lose status as entertainment industry leader, economist warns

A copy of the letter from ten California mayors


 

blog comments powered by Disqus

Enjoy reading The Breakdown? You might like KPCC’s other blogs.

What's popular now on KPCC