Today the Los Angeles Economic Development Corporation released a study about the positive economic impact of California’s Film and Television Tax Credit Program. The LAEDC study illustrates why 40 states around the country compete for film and television productions: because they are a proven job creator and economic stimulus. The study shows that the projects that qualified for the tax incentive in the program’s first two years generated $3.8 billion dollars in economic activity statewide, created more than 20,000 jobs and over $200 million dollars in tax revenues.
Assemblymember Felipe Fuentes (D-Sylmar), author of legislation (AB 1069) to extend the tax credit for an additional five years, held a press conference today on the set of ABC’s Body of Proof to publicize the data in an effort to ensure support for his bill. Fuentes was joined by Los Angeles City Councilmember Paul Krekorian, Body of Proof Executive Producer Matthew Gross, and a cross-section of entertainment leaders, including IATSE Local 44 Business Agent Ed Brown and Production Manager and DGA member Cleve Landsberg.
Senator Chris Dodd, Chairman and CEO of the MPAA said of the LAEDC study today: “The motion picture and television industry is overwhelmingly comprised of middle-class workers, and since it was enacted in 2009, California’s production tax incentive has been an important driver in a challenging economy. We applaud Assembly Member Felipe Fuentes’ leadership in the effort to extend this worthwhile program which helps keep high paying jobs in California and increases tax revenues across the state.”
Fuentes’ bill is currently awaiting a hearing in the California Senate’s Committee on Governance and Finance and we are hopeful that this study helps to dispel any doubts about the effectiveness of the tax credit program and easily passes through the Senate.