California tax credits double film production

The 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.

By Paul Banks 28 Jul 2014

California tax credits double film production
california film tax

The 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.

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.

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