California's Legislative Analyst Office has examined the financial upsides and downsides of film tax credits - and Hollywood will not like the findings.
The report states: "If the Legislature wishes to continue or expand the film tax credit, we suggest that it do so cautiously. We highlight several factors to consider. Specifically (1) responding to other jurisdictions’ subsidies could be very expensive and (2) for state government, the film tax credit does not 'pay for itself.'"
The legislature has been pushing to expand film tax credits - as industry complains about business flying to other states willing to subsidize film shoots. What exactly did the LAO find? How will it influence legislators?
Brian Weatherford, Senior Fiscal & Policy Analyst, Legislative Analyst's Office; He wrote, "Film and Television Production: Overview of Motion Picture Industry and State Tax Credits,” released this week; http://www.lao.ca.gov/reports/2014/finance/tax-credit/film-tv-credit-043014.pdf
Mike Gatto, Assemblyman, Forty-Third District representing the cities of Burbank, Glendale, and parts of Los Angeles, including Los Feliz, North Hollywood and others