Report: California Needs to Battle Runaway Production http://www.thewrap.com/movies/print/19465
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Home > Report: California Needs to Battle Runaway Production
By Anonymous
Created 07/22/2010 - 11:08
Published: July 22, 2010 @ 11:08 am
Production incentives are working, according to a research report from the Milken Institute's
California Center [1] -- to lure production away from California. But the state could fight back with
more of a commitment to incentives.
The report, "Film Flight: Lost Production and Its Economic Impact on California," says the state
has lost 10,600 entertainment industry jobs, more than 25,000 related jobs, $2.4 billion in wages
and $4.2 billion in total economic output since 1997 due to runaway film and TV production to
other states and countries.
With everyone from New Mexico and Georgia to Canada and Germany courting production jobs
with tax and wage incentives, it's not only the film/TV industry feeling the pain. For every job
created in California's film sector, the report says, another 2.5 jobs are created in other sectors.
With runaway production hitting California hard, those jobs are disappearing as well.
Among the report's findings:
-- The number of movies wholly or partially filmed in California has fallen sharply, from 272 in
2000 to 160 in 2008.
-- California's share of North American employment in the industry has declined from 40 percent
in 1997 to 37.4 percent in 2008; that drop is especially noticeable in post-production.
However, the report says, there are positive signs, including the tax credit implemented last year
that benefits projects with budgets under $75 million that film in California. But, the report notes,
the state's incentive program has more stringent qualifications than other states' and specifically
excludes big-budget productions.
The report recommends ways to help California turn the tide, including:
-- Designing a two-tier film incentive program, with separate rules and benefits for big-budget
and smaller-budget productions;
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Report: California Needs to Battle Runaway Production http://www.thewrap.com/movies/print/19465
-- Implementing a new digital-media tax credit to attract and retain developers of digital
animation, visual effects and videogames;
-- Making tax incentive programs permanent, signaling the state's long-term commitment.
The Milken report also analyzes what other countries and states are doing to attract production
and post-production business.
Related Articles:
L.A. Council Goes After Runaway Productions [2]
Los Angeles Desertion Syndrome: How to Solve It, Now [3]
Published Date:
1 year 24 weeks ago
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Tags: California [4], milken institute [5], Movies [6], news [7], Runaway production [8], tax incentives [9]
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Source URL: http://www.thewrap.com/movies/article/california-needs-battle-runaway-production-19465
Links:
[1] http://www.milkeninstitute.org/publications/publications.taf?function=detail&ID=38801245&cat=resrep
[2] http://www.thewrap.com/movies/article/la-council-goes-after-runaway-productions-8376
[3] http://www.thewrap.com/movies/blog-post/los-angeles-desertion-syndrome-how-solve-it-now-18618
[4] http://www.thewrap.com/movies/articles/california
[5] http://www.thewrap.com/movies/articles/milken%20institute
[6] http://www.thewrap.com/movies/articles/movies
[7] http://www.thewrap.com/movies/articles/news
[8] http://www.thewrap.com/movies/articles/runaway%20production
[9] http://www.thewrap.com/movies/articles/tax%20incentives
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