In a deal designed to stem the tide of runaway production from Hollywood’s home state, California Gov. Jerry Brown today announced his support of legislation that will triple tax credits for entertainment companies doing business in the state.
“The increase in tax credits, aimed at luring production back to California even as other states offer tax breaks of their own, comes just a few weeks after the California Film Commission said the state had lost $2 billion in the past four years alone as producers sought cheaper places to do business,” Reuters reports.
Brown, who is supporting the measure along with bipartisan leaders of the state Legislature, said: “This law will make key improvements in our Film and Television Tax Credit Program and put thousands of Californians to work.”
Reuters notes: “The deal, which still must be approved by both houses of the Legislature before the end of their session this week, would increase the amount of money available for tax credits for film and television production to $330 million per year, up from about $100 million.”
The measure, which is expected to be passed and signed into law, will set up a lottery system for awarding tax credits, favoring those companies that create the most jobs, according to Brown’s office.
“With thousands of jobs dependent on film and television production in Southern California, the plan was welcomed by Los Angeles Mayor Eric Garcetti, who said it would ‘protect and expand an industry that is integral to our economy and our identity,'” the report adds.
Gov. Jerry Brown