The film and television industries are an essential part of the California economy, especially in our neighborhoods. Thousands of people in my district are employed directly by these industries with thousands more working in related fields. In order to support this important economic engine, I co-authored a bill with my colleague, Assemblymember Felipe Fuentes, which extends the California Film & Television Tax Credit Program by an additional two years and $200 million until July 1, 2017. I am happy to announce the governor signed the bill into law last month.
The original program was enacted in 2009 as part of a targeted effort to create jobs, increase production spending, and generate tax revenues for the State. Since the beginning of this program, it is estimated that $728 million has been spent on local wages, to create an estimated 40,000 good jobs. An additional 172,000 individuals are estimated to have received daily employment as background extras. The tax credit can only be claimed after a film or television show has already been filmed, and an audit has taken place to prove that the expected jobs and economic development actually occurred in California. Thus far, the tax credits have resulted in almost four-billion dollars in economic activity statewide.
Putting people back to work is the most important thing we can do on the road to economic recovery. Production projects that qualify for this tax credit will generate millions of dollars in wages and production expenditures, helping to keep and create thousands of middle-class jobs for Californians.
It is important that we make California competitive with other states in all industries. Film and television production are crucial to this area and to my constituents and neighbors. This legislation is for you.
If you have an idea for a law, or simply believe that the Legislature ought to change a law to make it more sensible, I’d like to hear from you. Please feel free to contact me anytime at assemblymember.gatto@assembly.ca.gov or at 818-558-3043.
