It's a modest increase, but not good enough to offset previous declines, because California would have to match the tax credits of other jurisdictions, which it cannot do because it's insolvent.
California's film production is up.
- Thread starter Aspiring Mogul
- Start date
California's may be on its way back, but it is seeing an ever-decreasing share of film production, so the LA Times is asking if it will remain the "movie capital of the world". That would depend on what it means. If it means keeping most of the film production in the state, then the answer will be a definite NO. But, if it means being the place where deals are made, the answer will be a probably YES.
It will lose film production because the other jurisdictions, being other American states and other countries, will continue to use tax incentives to lure production. But it will still be the place where deals are made. I say this because I was at a conference a few months ago, and many of the participants were not from California, but they still said they had to go to LA to get business contacts in film.
That's because the place to make business deals may not be the place where the business is actually conducted. As an example, Britain has long since lost its place as the industrial center of the world, but London is still one of the two largest financial centers, where stocks of major companies are bought and sold - the other financial center is, of course, New York City. So LA may remain the place where deals are made, even if the films are not.
It will lose film production because the other jurisdictions, being other American states and other countries, will continue to use tax incentives to lure production. But it will still be the place where deals are made. I say this because I was at a conference a few months ago, and many of the participants were not from California, but they still said they had to go to LA to get business contacts in film.
That's because the place to make business deals may not be the place where the business is actually conducted. As an example, Britain has long since lost its place as the industrial center of the world, but London is still one of the two largest financial centers, where stocks of major companies are bought and sold - the other financial center is, of course, New York City. So LA may remain the place where deals are made, even if the films are not.
The state's currently trying to decide how to distribute an $8 billion surplus over last year's balanced budget - hardly "insolvent". The economy certainly isn't back, but it's on it's way, and I don't think the budget is the primary reason why CA isn't matching other state tax credits.
California is providing more tax credits, on the order of 20-25%, which is good, but it's not as much as other jurisdictions, which can offer 35%. And the dollar amount is only $100 million, as opposed to $430 million for NY. So this would be a good start, but more has to be done to keep production from running away.