CALIFORNIA PRODUCTION TAX CREDIT
BACKGROUND
- Began in 2009. $100M/yr – administered by CA Film Commission.
- Has enabled CA to be competitive and keep many at-risk projects in the state.
- Projects must be completed, allowable costs audited, tax credit certificates awarded and credit taken on subsequent tax year.
- Transparency provided through information supplied to CA Film Commission re: jobs created, vendor spending, etc. and through a Legislative Analyst study yet to be completed.
ECONOMIC IMPACT
- To date, approximately $500M in credit have been allocated by the Commission.
- Of this amount only $230,000 has been claimed against income tax liability – there is a significant delay between award and claiming of the credit which benefits the State.
- This has resulted in $3.9B of total aggregate direct spending by the projects.
- Total qualified wages paid by the projects are $1.3 B and more than 20,000 jobs.
- Studies have indicated that anywhere from $1.4 to $1.13 have been generated for every dollar awarded
The credit has proven its worth. The industry will be looking to extending and further targeting the credit next year. Please support this effort.