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.”

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