Film companies' tax break extension awaits signature

September 2, 2012 

A $100 million annual tax break for California motion picture companies would be extended under legislation headed to Gov. Jerry Brown.

Sylmar Democratic Assemblyman Felipe Fuentes proposed the two-year extension, Assembly Bill 2026, which cleared its final legislative hurdle late Friday night in the Assembly by a vote of 60-4.

The program of tax credits initially was signed into law by then-Gov. Arnold Schwarzenegger, in 2009. Fuentes' measure would extend the program from July 2015 to July 2017.

The tax concession targets major motion picture projects in which 75 percent of the shooting days take place in California or 75 percent of its production budget pays for services, purchases or property rental in the state.

AB 2026 is meant to encourage California's motion picture industry, which has made Hollywood famous, not to relocate.

Forty states offer financial incentives to the industry, as do Canada, Australia and much of Europe, according to a legislative analysis of AB 2026.

– Jim Sanders, Bee Capitol Bureau

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