Proposed Legislation Targets Film Tax Credits
Posted by Melissa Simon on Oct 8, 2013 - 10:57:30 AM
HOLLYWOOD HILLS—On Friday, October 4, Assemblyman Mike Gatto and Senator Kevin De León announced plans to introduce a film and television production tax credit in January 2014.
The new legislation would have the aim of increasing the amount of money given out by the state and expand who can receive the funds.
“We’re trying for a broader, better film tax credit,” Gatto (D-Los Angeles) said in a statement. “It’s going to expire anyway so it’s better to start planning,” he added.
Assemblyman Mike Gatto
Gatto said he hopes the legislation might entice local productions to hire California residents, keeping many of the film and television production jobs here, according to reports.
“I remember when our communities lost all the good aerospace jobs,” said Gatto. “Losing all major employers really harms the local economy, so we must do everything possible to make sure that good jobs stay right here,” he added.
Current legislation allows an annual $100 million tax credit that runs through the 2016-2017 fiscal year and affects many of the current jobs. In an attempt to improve these policies, Gatto and De León (D-Los Angeles) have been meeting with “below-the-line” workers and local small production professionals affected by the previous legislation, according to reports.
“Given the vulnerable state of our economy we can’t afford to hemorrhage any more good paying jobs,” De León said in a statement. “First thing in 2014, we need to extend the film tax credit and improve it to maximize job retention and bolster this home-grown industry. I look forward to partnering with Assemblyman Gatto on this effort,” he added.
In the meantime, Gatto and De León have asked the public to share thoughts on how to make the tax credit work.
“We look forward to hearing from constituents from all sectors of the entertainment community to find out how we can make the tax credit work more effectively to improve and expand California’s economy,” Gatto said.
According to Gatto, current legislation does not address state hiring and the current credit does not apply to some premium cable channels.
Gatto is expecting some opposition from some groups, including Northern California lawmakers who object a statewide tax credit because less filming takes place there.