Filming in California
Governor Davis Proposes Tax Credit for California-Based Film Production
PR_1_11_2002
FOR IMMEDIATE RELEASE
01/11/2002
Contact: Karen Constine, Director or Karen Caesar, Information Officer
Contact Phone: 323.860.2960
Also Enhances "Film California First" Program to Attract/Retain Production Stimulus Package Designed to Keep Films at Home; Stimulate State Economy
LOS ANGELES -- In an effort to halt the exodus of film industry jobs from California to Canada and other states, Governor Davis today announced his support for a 15 percent tax credit on the cost of wages for employees working on motion pictures filmed in California. The Governor also announced additional benefits to filmmakers in the "Film California First"(FCF) program, a multi-million dollar initiative the Governor launched to increase California's competitive edge in attracting and retaining commercial, television and film projects.
"We're creating an atmosphere that lets filmmakers know that California really wants their business," said Gov. Davis. "This stimulus package will provide a substantial financial boost to California's entertainment community."
The 15 percent wage-based tax credit, modeled after a federal proposal that the Governor supports, would apply to each employee substantially involved in the production of a California-based film. The credit would apply to the first $25,000 of an employee's salary.
For production companies to receive the credit, employees would have to perform all or nearly all of their services in California. The credit would target California productions that have been the most negatively impacted by "runaway production" by applying only to low or mid-size productions (Movies of the Week, mini series, cable productions, etc.). Legislation will be required to implement the tax credit that would take effect July 1, 2004.
Gov. Davis also announced enhancements to the successful "Film California First" program. During its first 11 months, the program has rebated more than 800 productions up to $300,000 per project. To date, nearly $6 million has been requested for reimbursement. The enhancements are designed to further stimulate film, TV, commercial and other forms of production jobs in California -- while providing a boost to the state's economy.
"Film California First rebate dollars help fuel film productions in California and stems runaway production," said Gov. Davis. "These program enhancements help production companies struggling with budget constraints to save even more money, create and retain jobs."
"Governor Davis has been steadfast in his commitment to reducing below-line film costs," said Karen Constine, Director, California Film Commission. "This new stimulus package, coupled with the already successful Film California First and STAR Partnership Programs, further strengthens California's position as the world film leader." The STAR program "unlocks" state-owned surplus properties and makes them available to the film industry at no or little cost.
Gov. Davis initiated the multi-million dollar Film California First (FCF) program on January 1, 2001. Qualified production companies realize cost savings through the program's various reimbursement categories when filming on public property in California. The program reimburses eligible public employee (excluding local police) and public-related film costs to productions shooting in the state, upwards to $300,000 per production -- lowering below-the-line expenses.
The primary enhancements to FCF include:
- Increase overall reimbursement caps for all public properties from $500 to $1,500. During the first 10 months of the FCF program, overall film permit fees and public location fee caps were set at $500. Increased rebates will be given as follows: film permit fee, from $500 to $1000; public location fees $500 to $1,500; and public equipment, from $250 to $500.
- Allow reimbursements for multiple film shoots by the same production company on the same day. Expand single per day/per public agency reimbursement, benefiting 1st and 2nd unit shoots on a single day and companies that otherwise shoot at two or more locations on one day.
- Reimburse fire department spot-check and public notification fees associated with filming on public property. The FCF Program will rebate fire department spot check fees, and public notification fees associated with filming on public property.
The California Film Commission enhances California's position as the premiere location for all motion picture and television production. A one-stop shop, the CFC issues permits for filming on state-owned property and administers several incentive programs, including Film California First (www.filmcafirst.com) and State Theatrical Arts Resources Partnership (STAR). The CFC does not charge permit fees or location fees for the properties it permits.
For more CFC information, visit its website at www.filmcafirst.ca.gov/filmca or call (323) 860-2960 or (800) 858-4PIX (4749).