Wednesday, 28 October 2009 01:14

News

The impact of the California Film Tax Credit, which we first reviewed back in July, has already had an enormous effect on film and television production throughout the state. Gov. Arnold Schwarzenegger announced this week that the first batch of 36 movies and television shows to capitalize on the new incentive will be going into production this fall. Designed to keep production in California and minimize the number of shows moving to cheaper locales, the incentive program is part of a 5-year, $500-million effort.

The announcement from Schwarzenegger's office coincides with news earlier this month that off-lot feature production in the Los Angeles area improved by 25% in the third quarter compared to 2008 numbers. As the Variety article mentions, the third quarter of 2008 was impacted by the writer's strike and, therefore, may be an imperfect baseline. Nonetheless, the rise in feature production and early results of the film tax credit are great news for an industry that is not, in fact, recession-proof.

Many felt California's incentive program was long overdue, as 27 other states beat the Golden State to the punch. Television shows that have filmed elsewhere will receive an additional return for moving their shows back to California. In San Diego, the Film Commission created a commercial film incentive called “Invest San Diego” which is funded by a grant from the San Diego Film Commission Foundation. It is comprised of a rebate to any commercial that has at least a $25,000 budget, shoots 75% locally in San Diego and hires 50% of its crew locally. Up to a $2000 rebate will be offered to qualified applicants to reimburse police, fire, posting for no parking and ranger fees. The incentive also has a workforce training program built in to help give recent film school graduates their first job experience and a head start on a professional resume.