Written by on Feb 9, 2012. Posted in Incentive News

Study claims local benefits of California filming incentives are exaggerated

Financial benefits California gets from its filming incentive programme are less dramatic than previously claimed, according to a new study from the University of California, Los Angeles (UCLA). The study may fan the flames of existing opposition to the programme, despite broadly supporting it.

For UCLA the main sticking point is that it says a previous study financed by the Motion Picture Association of America exaggerated how much money California makes back from every dollar paid out in incentives. It also argues that some productions film in the state even if they don’t get financial assistance.

Even though there is likely a small benefit to the state, I think the California film and television tax credit is a worthy programme because without it, in the long run, California is likely to lose dominance in an industry that is very important to the state's economy.

Lauren Appelbaum, Institute for Research on Labor and Employment

Lauren Appelbaum is Research Director for the Institute for Research on Labor and Employment, and spoke to the LA Times: "Even though there is likely a small benefit to the state, I think the California film and television tax credit is a worthy programme because without it, in the long run, California is likely to lose dominance in an industry that is very important to the state's economy."

California’s filming incentive programme already faces an uncertain future and is on the back foot compared to arch-competitors New York and Louisiana. The state’s debt crisis has caused many to question whether the programme – worth up to 25% of qualified production expense and backed by a film fund worth USD100 million annually – is prudent spending. Television spending is especially precarious at the moment as the specific TV incentive is only short-term.

(Image copyright: Massimo Catarinella)