California fighting to bring back Hollywood jobs. Here's how people in the industry will benefit
HOLLYWOOD, LOS ANGELES (KABC) -- California lawmakers are moving closer to passing legislation that promises to bring Hollywood jobs back to the state by boosting the amount of tax credits available to film and television producers.
Assembly Bill 1138 would raise the base tax credit rate from 20% to 35%, increase incentives for independent productions and expand the definition of "Qualified Motion Picture."
Just last week, the California Senate and Assembly agreed to expand the tax credit program from $330 million each year to $750 million.
Supporters say the filming incentives are direly needed after years of watching movie and television productions leave California.
"We've started to lose our competitive edge and we have a lot of people who are out of work," said State Senator Ben Allen, (D-Santa Monica.)
Allen, who co-authored AB 1138, says the money the state spends will not only bring Hollywood jobs back to the state - but actually generate more money for California than it dishes out.
"There's actually a net gain to the state's tax revenues by putting out this credit," he said.
Other states have bumped up tax credits for film and tv shoots, sucking billions of dollars in production from the state that was once synonymous with Hollywood.
Many of those who work in the entertainment industry see the new legislation as much overdue.
"The $750 million is obviously huge. It's a huge win," said writer/director Alexandra Pechman. "It gives us a fighting chance."
Pechman is one of the founders of the Stay in LA petition, which has already garnered more than 23,000 signatures.
She says even though she and her husband are in the film and television industry, they hardly ever are in L.A. anymore. Pechman pointed to a friend as another example.
"She had a show that was set in L.A., and she was given a choice between going to South Africa or Canada," she said.
Right now, the bill is still working its way through the legislature, but Allen hopes it will pass and end up on Gov. Newsom's desk by the end of this week.
