Thursday, October 29, 2020

CALIF. TAX INCENTIVES NOT SO BIG A DEAL, SAYS STUDY

February 7, 2012 by · 1 Comment 

A UCLA study has challenged oft-cited estimates by the Los Angeles County Economic Development Corp. that for every incentive tax dollar earmarked to film producers to keep them from moving their productions out of state, it gains back $1.13. The new study concludes that the amount is actually only $1.04. Moreover, the study by UCLA’s Institute for Research on Labor and Employment concluded that some productions will stay in California even without the tax credits. Nevertheless, Lauren Applebaum, who headed the study, commented, “Even though there is likely a small benefit to the state, I think the California film and television tax credit is a worthy program because, without it, in the long run, California is likely to lose dominance in an industry that is very important to the state’s economy.” Responding to the UCLA study, Christine Cooper of the LAEDC told the Los Angeles Times, “While we can quibble over pennies — $1.04 versus $1.13 in net positive fiscal impacts — states like Louisiana are setting production records at our expense.”