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California tax credits double film production

california film taxThe number of feature films which received tax subsidies in California has nearly doubled in the last year, with an estimated $1.1bn being spent in the US state.

According to a recent report released by the California Film Commission (CFC), a total of 45 feature films were produced from July 2013 to June 2014, compared to 26 the previous year.

The state spent $155m on tax subsidiaries on a total of 71 projects, comprising 45 feature films, 13 TV movies and 13 TV series.

The increase in projects being filmed also meant a rise in employment, with 7,500 crew members hired compared 5,100 the previous year.

For the 2014/15 period, the CFC received a record 497 submissions on the first day of the application period - a 29% increase compared to last year - and as of 30 June, $110m in tax credits has been awarded to 26 projects.

Including tax credits conditionally allocated for this year, $700m in total tax credits has been allocated since the tax subsidies were introduced in 2009, resulting in $5.39bn in total aggregate direct spending by TV shows and films. An estimated $1.72bn of this was qualified, below-the-line wages.

The Californian tax subsidiaries were introduced in a bid to increase film and TV production, jobs and text revenue in the state. A $100m-a-year subsidiary cap currently stands, less than some states such as New York, which is capped at $420m a year.

Earlier this year, California film czar Paul Audley urged the need to expand the state’s film and TV tax credit due to a rise in runaway production.

Thinking of filming in California? Then check out our handy production guide.