Gov. Jerry Brown said Wednesday that a deal has been struck on a bill to provide up to $330 million in incentives each year for movie and TV productions in California.
The deal also calls for abandoning the lottery process to pick recipients. Instead, applicants will be judged based on the number of jobs they provide and their economic impact.
The deal would give a significant boost to the incentives offered by the state, which are now at $100 million.
The agreement between the governor and legislative leaders calls for extending the California Film and Television Tax Credit Program, starting in the new fiscal year that begins in 2015.
The bill, AB 1839, now awaits a vote on the state Senate floor. It would extend the state’s film tax program by five years.
Assemblymen Mike Gatto and Raul J. Bocanegra, both D-Los Angeles, wanted to increase the incentives to $400 million to compete with tax credits offered by other states. For instance, New York program’s provides about $450 million annually in tax incentives for film and television projects.
Since its 2009 inception, the tax credit has prevented production companies from sending approximately 51,000 well-paying jobs out of state, and helped generate $4.5 billion for the economy, according to Assembly Speaker Toni Atkins’ office.
Los Angeles Mayor Eric Garcetti declared the agreement a “success for California’s middle class,” as it would benefit the “heart and soul of the entertainment industry,” such as “artisans, craftspeople and tradespeople who you never see on screen.”
It would also help Los Angeles hang on to its standing as “the entertainment capital of the world,” he said.
Earlier this year, the mayor appointed a film czar to lobby for increased tax incentives.
– City News Service contributed to this report.
