Production of feature films in California continued to fall last year, as it has during the past decade. In an effort to preserve a major California industry, the Legislature enacted a movie tax credit as part of last February's budget package (SB X3 15, Calderon). While on-location filming in Los Angeles County in 2009 was down 19.4 percent from 2008 (the steepest drop since tracking began in 1993), there is some evidence that the new tax credit is helping to keep production – and jobs – in California.
In the fourth quarter of 2009, "Feature" production increased by 13.6 percent over 2008.
According to Film LA, a non-profit organization dedicated to sustaining Los Angeles County's leadership in film production, the benefits of California's film incentive program – which took effect in July – are now evident. Of the dozens of film and television projects that qualified to receive the state credit, 17 have pulled permits to film in the Los Angeles area. Ten projects were features – films that would not have been made in California otherwise – and these projects generated nearly 300 permitted production days over the last six months of 2009.
Film LA President Paul Audley said: "The benefits of the state program are already evident, and there are many incentive-qualified projects that have yet to begin principal photography. The incentive generates rapid returns in both economic stimulus and jobs. With an industry as mobile and responsive as ours, enhanced efforts to improve the environment for filming will pay immediate dividends and help regain our lost market share." (Source: Film LA news release, January 14.)
Cal-Taxletter, January 22, 2010
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