According to a report released in March, the California Film and Television Tax Credit 2.0 Program “supported the equivalent of more than 110,000 jobs in the state, paying $7.7 billion in labor income, with California state and local governments estimated to have earned $961.5 million in tax revenues as a result of this activity.” The study was commissioned by the Motion Picture Association and conducted by the Los Angeles County Economic Development Corporation, an independent, nonprofit organization, using data provided by the California Film Commission.
“The success of this program is not only the jobs created and retained, but the economic engine it provides to other businesses throughout the region and the state,” said Dee Dee Myers, senior advisor to the governor and director of the Office of Business and Economic Development.
Overall, a total of 169 productions were allocated tax credits under the program, which ran from 2015 to 2020. Based on the analyses, “for every tax credit dollar approved under California’s Film and Tax Credit program, at least $24.40 in output, $16.14 in gross domestic product, $8.60 in wages, and $1.07 in initial state and local tax revenue will result from production in the state of California.”
Program 2.0 projects included the current Oscar-nominated films Licorice Pizza, Being the Ricardos, Tragedy of Macbeth and King Richard. Those four projects alone generated a total of $82.7 million.
The report advocates expanding the state credits for film and TV production and for the construction of soundstages, as well as creating a new credit for visual effects work. The $330 million-a-year 2.0 program expired in June 2020 and was succeeded by the 3.0 program, which was enhanced with an additional $90 million per year for the current and next fiscal years.
View the full report here.
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