Governor extends California TV and film tax credit to stem runaway production

Government subsidies for film and television productions face an uncertain future as lawmakers attempt to reduce government deficit.
Government subsidies for film and television productions face an uncertain future as lawmakers attempt to reduce government deficit. David McNew/Getty Images

On Sunday Governor Brown extended a tax credit for California television and film productions for another two years. The $100 million annual subsidy was designed to put the breaks on runaway productions.

California will continue to dole out $100 million in tax credits every year to television and film companies that shoot and produce their programs in the state. Television programs that move back from out of state get an extra bonus.

Gov. Arnold Schwarzenegger enacted the credit in 2009 to create more jobs and stimulate economic growth. The state has allocated a total of $400 million in tax subsidies since then, but little more than half of that has been claimed.

Two L.A.-area Democrats—Assemblyman Felipe Fuentes and Senator Ron Calderon--championed the extension. Los Angeles Mayor Antonio Villaraigosa and entertainment unions also lobbied hard for its passage. The tax credit will continue through 2017.

Earlier in the week Brown also signed a bill that gives production companies a break on licensing fees for guns used on set.

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