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California Committee Passes Production Tax Credit Extension - Broadcasting & Cable

California Committee Passes Production Tax Credit Extension

Bill now goes to Assembly Committee on Revenue and Taxation
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The California State Assembly's Arts & Entertainment
Committee voted Tuesday to approve a five-year extension of the state's film
and TV tax credit program.

In an effort to stem the flight of production to other
states -- like New York -- Canada, or elsewhere, the state in 2009 adopted the
tax incentive program. A bill introduced by assemblyman Felipe Fuentes extended
the program last year, and Fuentes followed that up with the five-year
extension. So far, the program has extended $400 million in tax credits,
targeted to TV and film projects most likely to leave due to incentives from
other states or countries.

The vote was 8-0, according to a Fuentes spokesman. It now
goes to the Assembly Committee on Revenue and Taxation. "We're hopeful the
bill will be approved in its current form," said the spokesman. 

Since the incentives were extended, says bill-backer the
Directors Guild of America, it has generated $2.9 billion in spending and created
29,000 jobs in California.

"We are very pleased that the California State Legislature's
Arts & Entertainment Committee voted decisively today to pass [the bill],"
said Bryan Unger of DGA. "The California incentive program, since its passage
in 2009, has lived up to its promise. California-based DGA members have been
among the direct beneficiaries of the thousands of jobs created by this
program, enabling them to work in the State, remain close to their families,
and in turn support local businesses and local economies."

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