On Thursday, The California Film Commission Board of Directors accepted California’s new tax credit program. The state of California, desperate to keep fleeing TV and film productions from leaving the state, tripled its annual budget for film/TV credits last summer, and now that the Film Commission has approved, will send the measure to the governor’s Office of Administrative Law for review and final approval.
The Wrap reports that the new system allots $330 million annually to entice entertainment companies to stay in-state, and widens the range of those projects that can apply for funding. The old system, in which the funding was selected by lottery, will have its last lottery on April 1. The new system distributes funds based on the number of jobs each production offers or the producers’ use of visual effects companies and production facilities within the state.
New applications for TV shows must be filed between May 11-17; feature films have no set date as yet. Any new TV show is eligible for the credits, along with movies with budgets above $75 million. But big-budget movies may leave the state despite the new credits, as only the first $100 million of a movie’s costs can garner the up-to-25% credit offered by the state.
Two upcoming cable TV series, TNT’s “Agent X” and USA’s “The Farm” have already obtained a combined $12.5 million in credits. Paramount Pictures’ “Genies” is scheduled to receive $7.4 million.
While California has forged ahead to offer incentives for film/TV producers, Arizona, Nebraska, South Dakota, North Dakota, and Wisconsin have canceled similar programs. Conversely, New York offers $420 million annually, and Georgia offers as much as 30% percent of a project’s cost.
Los Angeles Mayor Eric Garcetti has been pushing “Greenlight Hollywood,” a program to induce TV/film producers to stay in Los Angeles.