Gov. Jerry Brown, California Legislature to Approve Film/TV Tax Incentive Increase
The credits will be installed over a five-year period and top out at $330 million a year
Gov. Jerry Brown announced approval for a film/TV tax incentive increase on Wednesday, saying in a statement that a deal has been reached with legislative leaders from both parties.
The legislation is set to increase the incentive to $330 million a year over a five-year period, according to the Los Angeles Times. The governor's office confirmed the report in a news release noting that the incentive is set to begin during the 2015-1016 fiscal year.
"This law will make key improvements in our Film and Television Tax Credit Program and put thousands of Californians to work," Brown said in a statement. As The Hollywood Reporter noted on Tuesday, citing an informed source, the figure turned out to be smaller than the $400 million figure that was initially approved in a bill that passed in the state Senate.
"We've been working really hard over the last year to convince all policy makers in California, including the governor and several key senators, this was sound policy necessary to protect California's middle-class jobs," Assemblyman Mike Gatto, co-author of the film/TV incentives bill, told THR on Wednesday. "And in the last couple days we finally came to a meeting of the minds. We have a product now I think everybody can be proud of."
The current funding for the film and TV incentive currently sits at $100 million a year.
"I'm grateful to the governor and the legislature for this important measure to protect and expand an industry that is integral to our economy and our identity," said L.A. mayor Eric Garcetti in a statement, later adding: "The heart and soul of the entertainment industry are the artisans, craftspeople and tradespeople who you never see on screen, and that's who will benefit from this legislation. We are the entertainment capital of the world, and this legislation will make sure it stays that way."
Proud to announce a deal with Dem and Rep leg. leaders to expand, extend & improve CA’s TV & film tax credit program: pic.twitter.com/vfRqUY4eg6— Jerry Brown (@JerryBrownGov) August 27, 2014
Aug 27, 11:30 am Updated with Gov. Jerry Brown's official Twitter post, removes Sen Kevin De Leon quote, adds Wednesday quote from Assemblyman Mike Gatto.
Aug 27, 11:40 am Updated with governor's office statement.
Alex Ben Block contributed to this article.