In 2009, as a California State Assemblymember, Paul Krekorian authored California’s first film and television production incentive. As Assembly Speaker, Karen Bass supported Krekorian’s bill vigorously and saw it through to ultimate passage.
To date, this tax credit has generated more than $26 billion in investments while creating nearly 200,000 jobs. A recent study of the program found that every tax credit dollar approved generated more than $24 in economic output, while actually increasing state and local tax revenue.
Every year, more productions apply for the credit than can be accepted at the current funding level, and 71 percent of productions rejected for the credit take their business to states and countries with more competitive incentives. The Governor’s proposal would expand the program to $750 million annually, a massive increase from the current $330 million annual allocation. This would position California as the top state for capped film incentive programs, surpassing New York State.
“The expanded film and television tax credit doesn’t just create and protect jobs in the industry,” said Councilmember Krekorian, “It benefits entire communities where production workers live, work, shop, and raise their families.”