FOR EACH TAX DOLLAR ALLOCATED, LOCAL AND STATE GOVERNMENTS GOT BACK AT LEAST $1.13 IN TAX REVENUE
FIND L.A. TIMES STORY AT:
A newly released study from the Los Angeles Economic Development Corp. concluded that the state’s tax credit program pumped $3.8 billion into the state’s economy and created more than 20,000 jobs in since 2009….”The first two years of the program have been net positive to the state as far as the fiscal impact,” said LAEDC economist Christine Cooper, who authored the report. “The state is getting more in return than it has paid out.”
The report reportedly is the most comprehensive review to date of the state film tax incentive program, which took effect in 2009. 110 projects have been approved under the program, which offers a 20% to 25% credit on qualified production expenses. Companies can apply the credit to offset any sales or business use tax they have with the state…The LAEDC based its findings on a detailed examination of budgets from nine projects that were allocated $41.4 million in tax credits and included a new TV series, a movie of the week and small and medium-sized budgeted feature films.
Those films produced $847 million in overall spending that qualified for the credit. That included not only direct production expenses, such as wages for crew members, but also secondary expenditures on restaurants, hotels and construction supplies. The projects generated 4,440 jobs and $312 million in wages, contributing $44.6 million in total state and local taxes, according to the report.
California’s tax credit program is not as competitive as other states’ incentives, allocating only $100 million annually, a quarter of what New York state offers. Advocates said the tax incentives have slowed the pace of runaway production, fueling a 15% increase in overall location shoots in the L.A. area last year…