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California one step closer to better tax credits

Californian legislators have given their initial approval to proposed legislation which will see the State provide more tax credits in order to increase the amount of film and television productions that are to shoot there.

Traditionally known as the home of film and television, Hollywood has suffered from other states offering better production incentives than California.

The proposal is meant to renew and increase the tax credit from $100m to $400m a year and would mean most film and TV production companies can drastically reduce their tax liability.

The new tax credit would be far more lucrative for big feature film productions, TV series and would stimulate the on-location filming within California but outside Los Angeles.

If passed the programme would run until 2022.

Currently around 40 US states offer production incentives to film and television producers, including New York and Michigan.

In a recent report issued by FilmL.A. California came fourth in the total of number of live-action projects, related film jobs and total related spend; Louisiana came out on top, followed by Canada and the UK.

The report lead to California film czar Paul Audley calling for changes to the state’s film and TV tax credit.

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