Calif. State Senate Committee Passes Tax Incentive Extension
The legislation to extend California's tax credit incentives for another five years was passed by a key state Senate committee on Wednesday in a unanimous nine to zero vote.
The tax incentive program first went into effect in 2009 offering up $100 million a year as a way to compete with other state and international incentives designed to draw movie and TV production and keep jobs in the stat.
The California plan is considered a success even though the amount available has been quickly over-subscribed every year. The current law runs out in 2014.
The new bill would extend it through 2019 and add $500 million more in incentives.
The extension bill had already been approved by the state Assembly at the end of May by an overwhelming 72 to 1 vote.
Governor Brown has not committed to sign the extension if it is passed by the full Senate, which appears very likely.
However, backers believe that he will sign because of overwhelming evidence it has stemmed the flow of runaway production and produced both increased tax revenue and direct spending within the state, which all works to boost California's tourism industry as well.