AB 1069 (Fuentes), which originally extended the California Film Commission (CFC) tax credits for motion picture and television production through July 1, 2019, has been amended to limit the extension to one year (expiring on July 1, 2015) and eliminate the credit if the state does not reach tax revenue projections.
VICA strongly supports the original version of AB 1069, as the CFC tax credits are critical for attracting and retaining film production in California.
The motion picture and television industries spend approximately $15.4 billion on goods and services in California. According to a 2011 Los Angeles Economic Development Council economic impact study, 60 percent of employment in California is linked to these industries—about 20 million jobs.
The implementation of the California Film Tax Credit Program in the 2009 budget plan led to a revival of film production investment in California. Film L.A. reports that in 2010, feature film production posted a 28.1 percent fourth quarter gain and a year-over-year gain of 8.1 percent, in anticipation of the tax credit implementation on January 1, 2011.
In the first two years of the program, the credit is expected to generate more than $3.8 billion in economic output, maintain 20,040 union labor jobs in California and return $200 million to state and local governments in residual tax revenue.
If the film credits are left to expire next summer, California’s film industry will immediately divest in California, in favor of friendlier local, state and international governments. Moreover, the state will lose the ancillary economic benefits from tourism generated by California’s entertainment industry.
A top priority bill for VICA and our entertainment industry members, we ask that you place a quick call or short message to Senate President Pro Tem Darrell Steinberg urging him to agree to a longer extension and to eliminate the budget trigger.
Senator | Phone | Fax | E-mail |
Darrell Steinberg | (916) 651-4006 | (916) 323-2263 |
Stuart Waldman, Esq.
President
Valley Industry & Commerce Association (VICA)
5121 Van Nuys Blvd., Ste. 203
Sherman Oaks, CA 91403-1496
Tel: 818.817.0545
Fax: 818.907.7934
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