×
You will be redirected back to your article in seconds

California Sees $6 Billion in Direct Spending From Incentives

California’s expanded production tax incentive program has resulted in nearly $6 billion in in-state spending over the past three years, a report released Friday showed.

The California Film Commission asserted in the report that the Film & TV Tax Credit Program 2.0 has led to sustained growth in retaining and attracting in-state production. The $6 billion figure was generated from $815 million in tax credits. California’s credit covers up to 25% of in-state production costs, which is not as lucrative as other locations but is aimed at putting the brakes on runaway production.

The $6 billion figure includes $2.25 billion in qualified wages and $1.89 billion in qualified vendor expenditures, along with $1.85 billion in other expenditures that do not qualify for tax credits. Collectively, productions that have been allocated tax credits under Program 2.0 are on track to employ more than 18,000 cast and 29,000 crew members, according to the report.

“Today’s report shows that Program 2.0 is working over the long-term to create high-quality production jobs and increase production spending in California,” said California Film Commission executive director Amy Lemisch. “While our tax credit is far more targeted than most, it does precisely what it was designed to do by keeping us competitive and reminding the industry that California has everything needed to provide the best value.”

The report showed a 15.6% increase in hours worked in-state by below-the-line crew members in 2017 compared to 2014 (the year before Program 2.0 began). The report also showed that during year three of Program 2.0, California attracted five additional big-budget films (“Call of the Wild,” “Captain Marvel,” “Ford v. Ferrari,” “Island Plaza” and “Once Upon a Time in Hollywood”). To date, the expanded tax credit has attracted a total of 10 big-budget films.

During the third year, California attracted two additional relocating TV series (NBC’s “Timeless” from Vancouver, and Amazon Studios’ “Sneaky Pete” from New York). To date, the expanded tax credit program has gained a total of 15 relocating TV series from across the U.S. and Canada.

The report comes four months after California Gov. Jerry Brown signed an extension of California’s production tax credit program for five years beyond its 2020 expiration with $1.6 billion in credits.

The program was more than tripled in size in 2014 to $330 million annually to compete effectively with incentives in New York and Georgia. The program is overseen by the California Film Commission, which selects the TV and movie projects to qualify partly based on the number of jobs created.

The commission announced on July 23 that Margot Robbie’s Harley Quinn spinoff, “Birds of Prey,” would receive a $12.6 million tax credit for filming in California. “Birds of Prey,” a Warner Bros. movie, received the largest allocation of 19 films totaling $52.2 million.

More Film

  • Q&A With Juan Villegas on ‘Las

    Argentina’s Juan Villegas on ‘Las Vegas,’ Featuring at Cannes’ ACID

    CANNES – Buenos Aires’ director-producer Juan Villegas presented his debut “Saturday” at the Venice Festival and won awards at the Rotterdam and Sarajevo film festivals. “Suicidals” screened at San Sebastián. “Idleness,” his third feature, co-directed with Alejando Lingenti, screened at the Berinale. Produced by Salvador del Solar at Argentina’s Cepa Audiovisual and by Villegas’ production [...]

  • Aaron Taylor-Johnson and Kenneth Branagh

    Christopher Nolan's New Film Casts Aaron Taylor-Johnson and Kenneth Branagh

    Aaron Taylor-Johnson and Kenneth Branagh will appear in Christopher Nolan’s upcoming film, “Tenet.” Clémence Poésy, Dimple Kapadia, Michael Caine are also joining the cast that includes John David Washington, Elizabeth Debicki, and Robert Pattinson. “Tenet,” which is being filmed on location across seven countries, is an action epic evolving from the world of international espionage. [...]

  • Cannes Placeholder Red Carpet

    Eddie Peng, Ma Sichun Join Ann Hui's 'Love After Love'

    Eddie Peng (“Operation Mekong” “The Hidden Man”) will head the cast of “Love After Love” the new film by Hong Kong’s Ann Hui. He plays opposite Ma Sichun (“The Shadow Play,” “Soul Mate”). The picture, which started shooting on Wednesday in China, is the story of a young woman from Shanghai who travels to Hong [...]

  • 'Matthias & Maxime' Review: Xavier Dolan's

    Cannes Film Review: 'Matthias & Maxime'

    If there’s one term that Xavier Dolan probably never wants or needs to hear again, it’s “enfant terrible.” Irresistible to use when the Québécois auteur was 19, rattling out of the gate with his antsy, angry lash-out of a debut, “I Killed My Mother,” it’s followed him doggedly through a series of variously spiky, variably [...]

  • Cannes: Agoraphobia Drama '522' Sells to

    Cannes: Agoraphobia Comedy-Drama '522' Sells to South Korea (EXCLUSIVE)

    Media Luna New Films has sold South Korean rights for comedy-drama “522. A Cat, a Chinese Guy and My Father” to Laon-I at Cannes. The film tells the story of George, an agoraphobic young woman who can’t walk more than 522 steps from her home. One day, her cat forces her to embark on a [...]

  • Aladdin

    'Aladdin' to Soar Above Box Office Competition Over Memorial Day Weekend

    When Disney first released “Aladdin” in 1992, Bill Clinton was just settling in to the Oval Office, “Game of Thrones” wasn’t much more than a book idea percolating in the mind of author George R.R. Martin, and Johnny Carson was wrapping up his stint as “Tonight Show” host. In some ways, 2019 feels like a [...]

More From Our Brands

Access exclusive content