After a lengthy hearing, the Assembly’s appropriations committee unanimously passed a bill granting a two–year extension to the California Film & Television Tax Credit Program. Assembly Member Felipe Fuentes, D-Montebello, the committee's chairman, had originally sought a five-year extension—a term Hollywood has also pushed for. But the bill was amended to extend the program only through 2017. The level of funding was maintained at $100 million a year.
Fuentes had a similar experience last year, when he shepherded legislation extending the program. He sought a five–year extension only to see state lawmakers opt for a one–year supplement instead.
A coalition of interest groups—including the Directors Guild of America, SAG-AFTRA, state film commissions, and labor unions—has pushed for a five–year extension to ensure stability and help producers plan for upcoming projects.
Some studios recently made a public plea for the program. Warner Bros. released a detailed account of its local expenditures, it said, in order to educate Sacramento about the economic impact of the entertainment industry on Southern California.
This push has come at a time when other states are aggressively courting productions. New York recently tripled the state’s tax credit on post-production to 30 percent. California doesn't offer a similar incentive.
Still, critics of the tax credit program say it favors one California industry over another and amounts to nothing more than a hand out to wealthy Hollywood producers.
The two-year extension now goes to the full State Assembly for a vote, which will likely take place next week. Last month, the Senate committee on governance and finance approved a two–year extension of the $100 million program, but the legislation still has to go through the upper chamber's appropriations committee.
