Ten Mayors Express Support To Expand State's Film and TV Production Tax Credit Program
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Southern California Public RadioTen Mayors Express Support To Expand State's Film and TV Production Tax Credit Program
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Southern California Public RadioApril 25, 2014
The Honorable Mike Gatto The Honorable Raul Bocanegra
California Assembly, 43rd District California Assembly, 39th District
State Capitol, Room 2114 State Capitol, Room 4126
Sacramento, CA 94249 Sacramento, CA 94249
Dear Assemblymembers Gatto and Bocanegra,
As mayors of California’s largest cities, we are writing in support of enhancing
California’s film and television production tax credit program. The widespread
geographic and bipartisan support for taking this action demonstrates a keen realization
that California is losing tens of thousands of middle class jobs and significant tax
revenue to other states and nations when it comes to film and television production.
Ten years ago, motion picture production took place in cities across California. Now
California has lost nearly all big budget feature film production and most television
production to other states and nations which have ramped up their incentive programs.
In 2012, only one big budget feature film was shot entirely in California, and in 2013,
only 39 out of 137 one-hour television series were filmed here.
Simply stated, the demand for film and television productions that want to remain in
California far exceeds the resources available within the state’s current production
incentive program. According to data from the California Film Commission, less than
one in every ten projects received California’s incentive in 2013 – 380 film and television
projects applied and only 34 projects are set to receive credits.
Extending California’s film and television production tax credit program is a smart,
prudent investment in California’s future and economic competitiveness. The program is
one of California’s most efficient and proven economic development tools, generating
51,000 jobs and providing $4.5 billion in direct spending since its inception in 2009.
According to the California Film Commission’s “Progress Report - July 2013,” every
$100 million in credits result in $792 million and roughly 8,500 new middle class jobs in
California. These productions also support tens of thousands of businesses in local
communities in every corner of the state.
The Honorable Mike Gatto
The Honorable Raul Bocanegra
April 25, 2014
Page 2
Moreover, California’s program is accountable and transparent. This performance-
based incentive ensures that no one receives a tax credit until the production is
completed, all vendors and crews have been paid, and an independent audit proves
that the budget was actually spent in California. The program is also unique in that the
tax credit dollars do not cover the salaries of actors, directors and producers, but
instead cover behind-the-scenes middle-class workers like cinematographers, editors,
grips, costume designers, electricians, drivers and construction crews.
In order to once again be competitive, California must put in place a meaningful,
expanded credit that will bring back jobs, increase revenue, and support small
businesses and vendors all across the state. Too much is at stake for the people of
California to let this key industry slip away.
Sincerely,
ERIC GARCETTI
Mayor, City of Los Angeles KEVIN JOHNSON
Mayor, City Sacramento
Kenneth Weir KEVIN L. FAULCONER
Vice Mayor, City of Bakersfield Mayor, City of San Diego
ASHLEY SWEARENGIN EDWIN LEE
Mayor, City of Fresno Mayor, City of San Francisco
CHUCK REED
BOB FOSTER Mayor, City of San Jose
Mayor, City of Long Beach
JEAN QUAN
MIGUEL PULIDO
Mayor, City of Oakland
Mayor, City of Santa Ana
