The California State Assembly has unanimously passed a bill that would greatly expand production incentives in the state, extending tax credits for the first time to big-budget studio films and one-hour shows made for network, premium cable and the web. While production budgets for eligible movies are currently capped at $75 million, features of any size would be able to qualify under the bill, with the tax credit applicable to the first $100 million of the budget.
The legislation does not address the current $100 million annual cap on incentive spending by the state, though that issue is expected to be revisited next month, prior to a vote on the state budget. The bill now goes on to the State Senate for consideration in August.
Meanwhile, this year’s lottery for distributing credits to production companies under the current program will be held on Monday.
The California Film & Television Production Alliance said in a statement: “The strength of the unanimous vote demonstrates the Assembly Members’ clear understanding of the vital economic importance of the motion picture industry to California and their determination to return this state to a competitive position.”
To learn more about production incentives in California and other states, contact our incentives expert Verlette Franck at 310 471 9326 or email firstname.lastname@example.org.
Read more at Variety.com