Gov. Jerry Brown has signed off on a deal that would more than triple funding for California's film and TV tax-credit program.
The compromise would increase funding to $330 million a year over the next five years. While that falls short of the $400 million annually sought by backers, the amount would more than triple the current level of funding.
AB 1839 also would allow more projects to qualify, including new network television dramas and big-budget studio movies. It would also scrap a controversial lottery system used to divvy up funds. Instead, tax credits would be allocated based on how many jobs projects would create. ...
It's not the $400+ million that some AB 1839 backers were hoping for, but it's higher than some of the crustier cynics among us believed we would end up with.
This bill will favorably impact visual effects and will likely bring work back in those areas to Los Angeles and the bay area. (It's doubtful the legislation will bring back all the work. Canada is still handing out more free money than California is.)
The next eighteen months should tell us how effective the new tax incentives will be.
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