March 25, 2014
SACRAMENTO — Proposed legislation aimed at providing more tax credits to
attract so-called runaway movie and television productions back to the
industry's birthplace in California won initial approval from a legislative
committee Tuesday.
The proposal would renew and increase a state tax credit — amounting to as
much as $400 million a year — to better compete with generous tax subsidies
available in more than 40 states, including New York, Louisiana, New York and
Michigan, as well as studios in Canada and Britain.
The tax credit would allow most film and TV production companies to reduce
their tax liability by 20% of the cost of many production expenditures.
The movie industry, supporters said, is too important to California's
economy, history and image to be allowed to slip away. "This is our industry to
keep or lose," said Assemblyman Richard Bloom (D-Santa Monica). "We need to send
a message to New York, England and other states competing for our jobs and say,
'It stops here.'"
The bill, AB 1839 by Assemblymen Mike Gatto (D-Los Angeles) and Raul
Bocanegra (D-Pacoima), passed Tuesday on a 7-0 bipartisan vote by the Assembly
Arts, Entertainment, Sports, Tourism and Internet Media Committee. Gatto said he
expects an easy transit through the Assembly but conceded that the bill might
face more skepticism in the Senate and governor's office. Gov. Jerry Brown has
not taken a public position.
Representatives from movie-related trade unions, studios, caterers and other
service providers, film commissions and local governments, including the city
and county of Los Angeles, filled the ornate Capitol hearing room with
spontaneous applause. The measure now moves to the Assembly Revenue and Taxation
Committee.
"We can't afford to let any more jobs abandon our state," Gatto said. "This
effort is a rare example of government appropriately taking steps to ensure
well-paying jobs stay in California."
About 70 lawmakers have signed on as coauthors of the bill, which has solid
support across party lines and in all regions of the state. The only public
opposition came from the California Teachers Assn. and the California School
Employees Assn. The two groups said they opposed giving special tax breaks to a
particular industry. The money, they suggested, would be better spent on K-12
education.
The Gatto-Bocanegra bill, if passed, would replace a 2009 law that has
provided $100 million a year in credits. To date, it has funded about 270
projects, generated $4.75 billion in economic activity and created 51,000 mainly
high-paying jobs, many for skilled workers such as electricians, carpenters,
animators and cinematographers, the legislators said.
The proposed legislation would extend the program until 2022. It would
broaden eligibility to include big movie productions, all television series and
provide a special incentive for shooting outside the traditional Los
Angeles-centered area.
According to Gatto's office, film production in California has declined by
half in the last 15 years. Just last year, 21 of 23 prime-time television series
were filmed outside California, transferring jobs to other states and forcing
many longtime California residents to move away, Gatto's office said.
"I don't want to move, but there's tons of work in Atlanta," said Ed
Gutentag, a Topanga cameraman who says he's moving to Georgia in a few
weeks.
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This article originally appeared in LOS ANGELES TIMES by Marc Lifsher. You can read this article and more by
visiting LOS ANGELES TIMES HERE.
Mike Gatto is the Chairman
of the Appropriations Committee in the California State Assembly. He
represents Burbank, Glendale, La Cañada Flintridge, La Crescenta, Montrose, and
the Los Angeles neighborhoods of Atwater Village, East Hollywood, Franklin
Hills, Hollywood Hills, Los Feliz, and Silver Lake. www.asm.ca.gov/gatto 
