ARNOLD SCHWARZENEGGER - CALIFORNIA PASSES INCENTIVES PACKAGE

CALIFORNIA PASSES INCENTIVES PACKAGE

Despite strong opposition from many legislators, a five-year financial incentives package for Hollywood filmmakers has been included in the California's new budget. It provides up to $100 million annually in tax incentives to film and TV producers. Gov. Arnold Schwarzenegger is expected to sign the budget bill today (Friday). Among other provisions, the program gives a 25-percent tax credit to producers who are already filming out of state if they relocate in California. (It is called the "Ugly Betty" provision, a reference to the ABC television show that moved to New York this season in part to take advantage of that state's 35 percent tax credit to producers.) Nevertheless, some Hollywood executives observed that the incentives package is much lower than most other states', and entertainment attorney Peter Dekom, who advised the New Mexico Film Commission on tax breaks, told the Los Angeles Times , "It's hard to understand how [California's tax credits are] going to be competitive with states that actually have incentives where the credits are much higher."

20/02/2009