Written by new-contact on Jun 2, 2011. Posted in On Location

California’s existing filming tax credit on the way to 5-year extension

California’s existing film and TV tax credit programme is on course for a five-year extension. The State Assembly has overwhelmingly approved the bill and it will go before the Senate in the next few months.

The legislation is set to add USD500 million to the scheme’s fund, propelling it beyond the 2013-14 fiscal year.

Assemblyman Felipe Fuentes, who introduced the bill, said: "By any measure, the programme so far has been a tremendous success and should be extended. With the state's unemployment rate hovering around 12%, we need this incentive to help keep hundreds of thousands of Californians employed. Extending this incentive programme will prevent production companies from moving their projects, jobs and spending out of California."

By any measure, the programme so far has been a tremendous success and should be extended.

Assemblyman Felipe Fuentes

The incentive scheme has generated well over USD2 billion in production spend for the state, while USD300 million in tax credits has been issued. Over 100 productions have benefitted from the programme since it began, with 43 projects claiming the entire USD100 million budget on the first day of the scheme in the last fiscal year.