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California film tax credit set to quadruple

california film taxCalifornia is poised to increase its film and TV tax credit fourfold to $400m after a bill was approved by the state Senate Appropriations Committee on Thursday (14 August).

If approved by the governor, the expansion will make California a strong competitor to other US states such as New York, which currently has a cap of $420m a year. As well as the increase, a lottery system used to determine who gets the incentives is also likely to be scrapped.

The amendment will no doubt be welcome news to Paul Audley, California’s film czar, who earlier this year urged the need to expand the state’s film and TV tax credit following a decline in production in the state.

“One of California’s most important and iconic industries has been the film and television industry," said Kevin de Leon, chairman of the Senate Appropriations Committee. "Hollywood is synonymous with that industry, but in the past decade that industry has been cannibalised by other states and countries that have poached tens of thousands of California jobs with lucrative financial incentives.

“To halt that steady outward march of jobs and creativity, California must have a robust, smart and efficient tax incentive program of our own -- a tax incentive program that guarantees job growth and economic expansion, coupled with strong accountability and transparency measures."