Wednesday, December 2, 2020

CALIFORNIA SAYS TAX INCENTIVES ARE DOING THEIR JOB

June 29, 2011 by · Leave a Comment 

While some states are considering cutting back — or even eliminating — the tax incentives that they offer filmmakers, claiming that they’re losing more than they’re gaining from them, California claims that the relatively modest tax incentives that it offers are pumping $3.8 billion annually into the California economy and created 20,000 jobs during the last two years. Today’s (Wednesday) Los Angeles Times cites a study by the Los Angeles County Economic Development Corp. that concluded that for each tax dollar allocated by the California Film Commission the state gets back at least $1.13 in tax revenue. A bill before the California legislature would extend the tax credits for five years, but it faces opposition from some lawmakers who insist that it is not California’s business to single out special industries for favors, especially not at a time when the state’s budget faces particularly heavy pressure. But Assemblyman Felipe Fuentes, the author of the bill, told the Times, “The tax credit program has provided a tremendous economic stimulus for California. … It is a job creator and a job saver at a time when too many Californians are struggling to find work.”