FilmLA urges bigger tax credits amid Hollywood woes

FilmLA, the organization that handles film permits and tracks on-location production in the Los Angeles area, is urging California to expand its movie and TV tax incentive program to mitigate Hollywood’s ongoing production crisis.

The Studio City-based permit office released a scripted content study on Wednesday revealing that filming activity in the region declined by 19.7% when examining titles released in 2023 versus 2022, while California’s share of the global production market fell from 22% to 18% judging by the amount of projects released over the same period.

“Today, Greater Los Angeles is one place among many where film, television and commercial projects are made,” FilmLA President Paul Audley said in a statement.

“More support for California’s film industry, including and a vast expansion of the California Film & Television Tax Credit Program, is required in order to increase the rate of industry investment in our state.”

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As the Los Angeles Times recently reported, entertainment industry experts and insiders overwhelmingly agree that California’s $330-million tax credit program — which pales in comparison to more generous and expansive incentives offered by other states and countries — is the biggest factor dissuading studios from shooting movies and TV series in the state.

A number of improvements to California’s tax incentive system have been discussed — such as expanding the program to cover commercial production and salaries for stars and other above-the-line employees. But it is widely accepted that a significant overall boost in funding is needed to compete with Georgia, New York, the United Kingdom, Canada and other popular production destinations.

In a September interview with The Times, Colleen Bell, executive director of the California Film Commission, acknowledged that the state “can’t always compete dollar-for-dollar with other tax credit programs” but reasoned that Hollywood still has “significant value” thanks to its robust infrastructure and seasoned workforce.

“The entertainment industry feeds around $43 billion in wages into the state economy,” Audley said in a statement. “But how long can California subsist — or help businesses and families thrive — on an ever-thinner slice of a shrinking production pie?”