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California’s film tax credit may be expanded for two more years, the Los Angeles Times reported last week. The bill was approved by the state Senate Governance and Finance Committee. If passed by the state legislature, the state would set aside $200 million for the next two years to be used towards tax credits for the Hollywood film industry. The original bill would have set aside $500 million for the next five years.
The Hollywood Reporter stated:
“Out of hundreds of applications that flood into the California Film Commission offices in Hollywood, a CHP officer randomly selects which projects are to be funded until the money for that fiscal year has all been allocated. The projects that don’t get funded go on a waiting list.
The tax credit program is an effort to keep production in California at a time more than 40 states and numerous countries offer various kind of incentives to lure movie and TV projects away. Under the current law, there is funding for one more year of tax credits even if the current extension effort fails.”
A recent report criticized the tax credits, saying it did not provide value to the state. Hollywood supporters of the bill said the critique was not accurate.
The bill will next go to the Senate appropriations committee, after the legislature returns from their summer break.
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