The program was enacted in 2009 to help save jobs by keeping film and TV production companies from leaving the state. More than 40 other states and Canada offer attractive financial incentives to lure entertainment jobs out of the Golden State.
According to figures released by the Los Angeles County Economic Development Corporation, the tax credit program has created nearly $4 billion in economic output and 20,000 jobs in California since 2009, at a time when unemployment is nearly 12 percent throughout the state.
California's program allocates $100 million a year in tax credits for qualifying film and TV programs, and has created over $200 million in tax revenue.
Assemblyman Felipe Fuentes released the results of a study highlighting the success of the program during a news conference in Burbank in front of the set of the hit ABC crime drama "Body of Proof."
The show shot its first season in Rhode Island because of a tax credit, but it's relocating to California in July because of the incentive. "Body of Proof" has already hired 70 people to build the sets and will hire another 180 workers once shooting begins.
"We will spend nearly $20 million in payroll to our workers, including benefits to the healthcare and pension plans," said "Body of Proof" Executive Producer Michael Gross. "We will also use the services of approximately 1,230 different vendors. During this season alone we will spend over $43 million in California, and that's a lot of money."
A number of local and state politicians, as well as people in the film and television industry, are very supportive of the program.
The program is set to end in 2014. The State Assembly has voted to extend the program another five years. The State Senate is awaiting a hearing on the bill.