By: Brittany Nicole La Hue
As domestic job creation, company outsourcing and debilitating business taxes are stoking political stump speeches in the lead-up to the 2016 Presidential election, California has honed in on these issues in its renowned entertainment industry. Hollywood, and the surrounding Los Angeles area, used to be the world’s hub for film, television and commercial production. Yet, while 1997 saw 64% of the top 25 box office movies filmed in California, by 2014 that number had shrunk to a measly 16% (Variety).
“Runaway production” has been ravaging California’s film and TV production community for years. Rather than suffer the high costs of producing in Hollywood, TV and film projects flew the coop to take advantage of generous tax credit programs in New Orleans, Boston, Vancouver and even England. Luckily, California’s new tax incentive program, which went into effect July 1, should spur significant change (KPCC).
The new program allows $330 million in tax credits annually, and projects are chosen based on which will create the most jobs for Californians. Forty percent of the money will be allocated to new TV dramas, and recurring TV series, 35% to feature films, 20% to relocating TV series relocating to California and 5% to independent features (Variety).
Commercial director Paul Coy Allen shoots in LA
The new incentives will help commercial production, post-production, audio and visual effects studios as well. Projects are granted an additional 5% credit for visual effects, music scoring and track recording that takes place in-state (Film Production Capital). In addition, helpful nonprofit resources like Film LA are forming to make filming in California as smooth as possible. Film LA helps coordinate and process permits for commercial production shoots, feature film and TV shoots. The organization is funded by permit coordination fees paid by production companies, in a true instance of the community helping each other out.
Yesterday, the first 11 productions granted money through the new incentives were announced: Feature films The God Particle, Avon Man, Why Him, Action Park, Conjuring 2, Overnight, Whale and an untitled Dax Shephard comedy; and three independent projects Code Name Veil, Twin Peaks and Chicken Soup For the Soul (SHOOT).
Specific counties in the Golden State are also offering their own film production incentives to lure cameras their way. For instance, the Scene in San Francisco rebate program offers a refund of up to $600,000 on any fees paid to the City of San Francisco for TV episode or feature. San Francisco’s Vendor Discount Program offers 10-30% off hotels, restaurants, production services, car rentals, and even airlines discounts up to 13%.
What will be the next projects to benefit? Will you be applying for a production tax incentive? Let us know in the comments!